Welcome to the forum Craigy.

I can see where you're coming from here, but I don't really agree with you that this is unfair.

Your trustee was responsible for handling the debts that existed when you signed your trust deed. If they're still in office, and the proceeds of a claim have become available, then it's simply their job to help recover the funds to help repay these debts.

It is of course disgraceful that payday lenders were issuing loans to you while you were in a trust deed. By definition (it seems to me) this is unaffordable lending, as you'd already committed your full disposable income to your trust deed. I don't think you've been treated fairly by them at all.

Is the point here, Not that if you are discharged then the cash should be yours. How did the trustee know about the money ? If you are discharged should the comms not have been between the pay day lenders and you ?

Hi np785641d,

I think that the trustee remains in office at this stage, and that this is an asset (the potential to make a claim for an unaffordable loan) that arose during the term of the trust deed.

So once i'm discharged , The trustee only has a claim on my assets that were gained through the trust deed period. So say i am made redundant 2 months after my discharge, The trustee would have no claim on this ? even if they are still in office ?

Thanks for advice folks. I totally understand that because the refund is classed as an asset and it should go towards the trust deed. The point I’m making is that I took the payday loans whilst I was in the trust deed because I had an awful gambling habit. I asked the trustee if there was anyway they could help get me out of this mess in which they refused and I had to make an arrangement with the lender to clear the debt. When the unaffordable complaint was pursued by the financial ombunsdman on my behalf the lender advised that I was in a trust deed and the FOS contacted my trustee with regards to this complaint. I was discharged in August this year and the FOS upheld my complaint in October in which the lender paid the refund directly to myself. So after the trustee not willing to help whilst I was in a mess to now they want the refund I find quite deflating.

How did you feel that they could have helped you with this situation at the time Craigy?

At the time I thought the debt could have been added to the trust deed but to be honest my head was all over the place and was clutching at straws. I had to come to an arrangement with the lender to pay off the debt.

I see. Unfortunately there would have been no legal way to do this. The trust deed simply includes the debts that existed at the point that you signed it. There's no way to add a new debt into an existing trust deed.

Yes that’s what I was advised at the time also. Thank you

Hi np785641d.

Apologies that I missed your question.

Yes - if you're made redundant after having been discharged I cannot see how your trustee could have any interest in any proceeds from this.