Hello manatbushk.

The maximum amount is:

1 - The total of your debts at the start.
2 - Interest applied to those debts.
3 - The fees and costs associated with the trust deed.

This can obviously add up to a fair amount more than the original debt total when someone becomes in a position to pay it. It's not common for this to happen, but nor is it unknown.

Trust Deed Assistant is right, there is occasions where an individual may pay back more than the amout of original debt at the date of signing the Trust Deed. As stated above when paying off a Trust Deed in full you must pay the costs and outlays of the Deed, statutory interest at 8% per Annum, to compensate the creditors for what they should have received should the Trust Deed not have been.

Frustrating I can imagine, however this is the procedure in all insolvency procedures.

always thought that debt was frozen at entry to trust deed so cant understand why 8% interest also as i stated where do they draw the line they still seem to want the shirt off our backs.

But when you borrowed you signed credit agreements promising to pay back the sum plus interest?

So... if you subsequently become in a position to pay back your debts plus interest during the period of a trust deed is it unfair that you do?

I do think that you should have been made aware of this possible outcome, but I'm not sure that the outcome itself is unfair?

Hi manatbushk,

It must be frustrating as Rob has said regarding the amount of money you and you wife have contributed towards your Trust Deed's and also including the surplus funds from your property sale.

When you entered into your Trust Deed's was is agreed or discussed that your property would have to be sold as part of it?

As TDA and Rob have advised, if it's possible to repay your debts in full then your Trustee has to try and do this. These situations are not that common and generally happen because of inheritance, the sale of an asset, by acquiring an asset during the period of a Trust Deed or by the compensation payout for PPI. In the event that this happens, TDA has given a good idea of what is required to be paid. Statutory interest can play a big part in this and can push up the balance.

If your debts are £35,000, by the time you add interest onto this it will increase the debt higher than the sum that has been ingathered into your Trust Deed's to this point. Add to this the fees and charges of your Trustee in administering both of your cases and I suspect this is why they are continuing to pursue PPI as the funds they hold will not be enough to cover the debts, plus interest, plus the costs of the Trust Deed's.

I'd agree with TDA that this should have been discussed with you at the outset of your case so you had an understanding of the possible eventualities during the period of your Trust Deed's.

Has your Trustee discharged you from your Trust Deed's? If you have completed all of your payments and you obligations then I see no reason why you could not be discharged and the Trustee continue with the PPI investigations.

interest was already on debt thats why debt was so much TDA
your the experts so you must know that trust deed companies dont give you all the facts at offset dtan as for costs when you enter trust deed they state it wont cost you anything its government funded but i guess you experts all stick together as you are making a fortune out of it

I think most trust deed providers work very hard to fully inform their clients manatbushk. If this didn't happen for you I think it's very unfortunate.

I appreciate that part (possibly a lot) of your debts at the start of the trust deed will have been interest. The fact of the matter is that interest is charged on lending otherwise there would be no lenders. If a borrower can afford to pay interest after voluntarily entering a credit agreement I think that lenders must be entitled to receive it. Irrespective, that's how the legislation works so we're all stuck with it.

I've never once said that trust deeds are government funded. I'd bet all of the money in my bank account that Mark, Kevin, David and Rob haven't either.

Your assumption that the people that post in this forum are a making a fortune is totally and utterly wrong. Just like with all companies, there's lots of people doing regular jobs in return for regular salaries.

I appreciate that you're angry, but you may wish to think about whether you're directing your anger at the right people.

i realise what you are saying about being angry but i could assure you that my trust deed company told me that trust deed was government funded and thats why they can write off 70% of debt. There are thousands of posts/topics regarding trustdeed companies and from what i can see not one of them states that they have been fairly treated by their trust deed company its about time the government got to grips with these trust deed companies as they are only good for people who have no assets they are totally useless for anyone else as all information advised is not suitable. I realise that i had the debt but these companies are not helping people with different financial problems and all their verbal promises are false

For the record manatbushk I really am very sympathetic if you have been misled and that has resulted in big problems for you. I too would be frustrated and angry if that had happened to me.

Trust deeds can certainly be suitable for some people with assets. However everything needs to be discussed in advance with total (written) clarity about exactly how things will work later.

Most firms, including those that post here, are perfectly happy to do this and do so as a matter of course. We do know that there are variations in the quality of service provided by firms within the industry. We know that this can have serious ramifications for customers of firms that oversell trust deeds and fail to properly inform clients about the cons as well as the pros of the choice that they're making. I think this forum has done quite a lot to bring this to light and has hopefully helped quite a few people to avoid the same problems in the future.

The Scottish Government does have some concerns about trust deeds, not least the way that the fees currently work, so there are significant changes about to happen that they believe will address the problems that concern them.

There's a danger here of lumping all debt advisory firms together. There are really good and really bad firms out there it would seem, just like in any industry. There's also a danger of reading too much into what you see on this forum. The nature of forums is that they tend to be used by people who aren't clear on issues or who believe that there is a problem. I think there's a big majority out there who are pretty satisfied with the way things are going and therefore have no reason to post on a forum like this.

could not have put it any better but i would like to say that the vast majority of people do not understand trust deeds and they only sign them because they are desperate with their debt problems and these trust deed companies are meant to be sympathetic towards you but once they have conned you by their false promises they are not interested in working along side you. One of the biggest cons is them giving you all the false promises and a month down the line someone else coming along and taking over so the one that takes over cannot be blamed for the promises made this is a regular practice. Thankfully im out of my trust deed and can move on but i warn everyone going into a trust deed do not trust them as they are in name only verbal promises never come in writing.

Some people are quite vulnerable when they sign trust deeds which is why good firms prioritise face to face meetings and confirming all important points in writing. That's aimed at avoiding the problems that you've suffered by making sure all parties know exactly what they're committing to.

Trust is important and shouldn't be assumed. Choosing a firm that you have reason to trust along with written confirmations goes a very long way to making sure everything goes OK.

There are professional and sympathetic firms, and there are others that are often criticised here for being lacking in these qualities.

Hi manatbushk

As one on the 'other side' I have to agree with some of the points, although it is dangerous to generalise in anything.

I've been doing this for 26 years and in that time have witnessed quite unbelievable things previously and unfortunately currently. The postings from debs are a classic example of the actions of some firms. I honestly think there are bad firms, firms who's sole aim is feeing and good firms. Striking the balance is the key. ie meeting the balance of both the individual and the creditors. Personally I see 99% of the cases we take on, even if this means travelling to the North of Scotland or down to the Borders.

I am the 1st point of contact throughout the entire period of the Trust Deed ( or Maria) if I'm not available and have one mobile phone which everyone has the number to. I answer calls morning, noon and evening 7 days a week including holidays and receive emails daily from many people which I endeavour to answer asap. The point is that it can take me 1 minute to explain something that otherwise may put the fear of God into someone, like creditor letters/threats.

I think it is all about balance and anyone who treats this job as a 9-5 job, is in the wrong profession.

Mark