Hi Kenny1781.

A trust deed can only include debts that existed at the time that you signed it.

It sounds like this potential debt originates from a time after that?

Hi kenny

It will be fine. It's the historical reason for the Edinburgh Gazette ad, to notify creditors of the position.

If you mention it to your trustee, I'm sure they will deal with it.

Mark

Are you sure Mark?

Kenny1781 is 2.5 years into his trust deed, and the insurance cancellation was last year.

Yes, the debt originates from after I signed the trust deed.

Hi TDA

Sorry I though kenny said half a year. Problems of reading things on my phone.

No, as it is post Trust Deed debt, Kenny will unfortunately be liable.

Mark

I'm glad Mark has responded in this way otherwise we might have seen a flood of posts next week from various contributors along the lines of
"I lost 5 grand at the casino at the weekend; how will my IP react to this being added onto the PTD that I have been in for five minutes!

Good weekend to all!

I always fancied a trip to a casino!!!

Bet you a fiver I would win hee haw!!

Paul

On that theme, our advice team has had a question or two that we have been discussing this week that I'd value some member input on.

We have seen a few threads recently where people have taken out payday loans during a trust deed which has made things very difficult for them later. We have also seen, today, the start of an OFT investigation into whether payday lenders are acting responsibly. A couple of questions/thoughts:

1: Do members think payday lenders should be allowed to lend to someone who is in a protected trust deed?

2: Do members think that someone in a protected trust deed should be allowed to borrow additional sums before they are discharged?

3: Can it ever be "responsible lending" to give someone further credit while they are using a formal plan to deal with other debts?

I agree with all of those questions being asked. I would add the question re. constantly texting people with promises of answers in minutes, no credit checks. How can that be anything but wrong.?

1. Payday loan companies should definitely NOT be allowed to lend to someone in a PTD. In fact, payday loan companies should not be allowed to lend to anyone ever. They are barely regulated loan sharks, nothing more. It's beyond time the OFT grew a pair and put paid to them once and for all.

2. I think that in some circumstances people in a PTD should be allowed to borrow. Responsible lenders such as credit unions are definitely the way to go for anyone in a PTD. I would recommend ANYONE entering a PTD to approach their local credit union, explain their situation and arrange to save each week or month the amount of contingency money they are "allowed". This money is for emergencies such as household maintenance, car repairs etc, but we all know that budgets don't always go as planned and we may be allowed £25 a month for car repairs but get a garage bill for £200 after 4 months. This is where a credit union will lend you enough to cover the bill and you'll repay it as you continue to save your contingency funds each month. Standard interest rate is only 12.68% APR (about £1.08 a month for each £100 borrowed). See if any bank will lend at that rate while your credit rating is shot to all hell. BUT I CAN'T STRESS THIS ENOUGH: YOU'VE GOT TO START SAVING AS SOON AS YOU ENTER THE TRUST DEED.

3. So yes, it should be possible to lend responsibly during a Trust Deed as long as the lender is a sensible, community-based organisation such as a CU.