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Phone contract

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Active Member
Joined: 1 month ago
Posts: 5
Topic starter  

Hi, in the early stages of the trust deed(proposal ready to be sent to creditors) my payments for phone contract were included in my expenses but was made aware as they are a creditor would be included on the TD, will I keep my phone during this or will the company seek to get it back?

Kevin Mapstone
Member Admin
Joined: 15 years ago
Posts: 4246

Hi Cb1998.ย  The company could only look for the return of your phone if it is a hire or hire purchase type of finance you have with them.ย  If it is being included in your Trust Deed then I assume it is a straightforward loan agreement, which does not give the lender the right to take your phone back.ย  If you have an ongoing contract with them for your calls etc then I guess they could potentially cancel that. though.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.

Active Member
Joined: 9 months ago
Posts: 13

Hi Cb1998, some phone providers give you 2 different agreements, one is an unsecured loan for the handset, the other is a contract for calls, data etc...

The unsecured loan should be treated the same as all other unsecured creditors (you should cease these payments and the loan is discharged via the Trust Deed). As Kevin points out, if the loan is unsecured they cannot take action to recover the handset, however they may cancel the minutes and data contract. You could then get a new sim only deal and continue to use the handset.