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Scottish Trust Deed Forum
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Topic starter
13/06/2015 10:49 pm
I recently received a large amount of money which put me in the position to help a family member leave a trust deed early. Or so I thought...
The trust deed in question doesn't have any property tied in.
I sent a letter offering £4600 as it was originally taken over 60 months with payments of £100 a month. This offer was rejected which I would have found reasonable when they explained the original debt was 8000 before discounts. However, they have said that I would need to pay £16000+ due to fees and interest. This sounds like a joke. If I offer to pay the £100 a month this will be taken into consider with their income and the payments would increase to £200.
It may be worth mentioning they have claimed ppi of £400 from one of the creditors.
Is there any way I can force this company into taking a more reasonable settlement?
Topic starter
14/06/2015 12:10 am
I can't edit the question on my phone but can I also ask if it would be likely for a company to accept the £1800 paid for fees and release her from the trust deed in order for settlements to be made individually?
14/06/2015 1:37 am
Welcome to the forum Annoyedfamilymember.
I'm afraid that the trustee is under no obligation at all to bring the trust deed to an early end unless you pay the full debts, interest on the debts, and the fees.
I'd imagine that's where the £16000 figure came from.
They're also very unlikely to end the trust deed for the purpose of enabling you to deal direct with the creditors.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
14/06/2015 2:29 am
Thank you for your reply.
I don't understand why the company will not accept a figure higher than they will obtain within the term but lower than the overall debt plus fees etc. This doesn't make sound business sense. My family member has expressed disgust and may even look to stop payments due to the trustees lack of compromise on this issue.
Where does one stand when the introducer company misled the client with regards to circunstances such as this and has now ceased to exist?
quote:
Originally posted by Trust Deed Assistant
[br]Welcome to the forum Annoyedfamilymember.I'm afraid that the trustee is under no obligation at all to bring the trust deed to an early end unless you pay the full debts, interest on the debts, and the fees.
I'd imagine that's where the £16000 figure came from.
They're also very unlikely to end the trust deed for the purpose of enabling you to deal direct with the creditors.
14/06/2015 8:45 am
If the trust deed was signed after the rules changed (28th November 2013) the trustee has no discretion. Unless the debts/interest/fees are fully repaid there is no early discharge.
If it was signed before then the trustee does have discretion, but we've seen many times here that trustees interpret what is in the best interests of creditors in different ways. For example, granting an early discharge denies the creditors the possibility of benefiting from a windfall received later.
Regarding the introducer, I can imagine it will be very frustrating if they've said otherwise. It's only the view of the trustee that counts, so we've always encouraged people to get introducer promises confirmed in writing, in advance, by the proposed trustee. Once the trust deed is signed there's no turning back.
Stopping payment might be effective. It might also result in a refusal to discharge, a wage arrestment, or even being made bankrupt.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
14/06/2015 9:12 am
Hi Annoyedfamilymember,
Are you able to confirm when the Trust Deed was signed?
Like TDA advised if it was after November 2013 then the Trustees hands are tired and its set out in legislation what happens in the event if Trust Deed is closed earlier than 48 months and what must be repaid.
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