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18/07/2013 1:01 am
Hi again folks.
You may recall some time back I gave a potted history about how I was stupid enough to pay thousands up front to a PPI company almost three years ago which was more than partly responsible for sending me over the edge and into a TD.
You may also remember that over this three year period I had not received a penny by way of compensation for said PPI and that I had all but given up on it and just decided to bite the bullet, forget about it and just see out the remaining six months or so of the TD ...roll on !
However, I have just received out the blue, two letters, one from the claims firm. the other from the Financial Ombudsman, stating that one of the firms that they have been chasing up over the last three years has finally admitted that they do indeed owe me compensation for missold PPI.
Ordinarily of course, this would be great news, but obviously within this time scale I have entered into the TD.
Despite the company concerned not being one of the creditors involved in the TD I am still well aware that I will still have to declare to my accountants who are dealing with my trust deed anything worthwhile that I may receive.
I cetainly have no intention, with only a few months left, to rock the boat by NOT declaring.
However, what is classed as a significant sum to declare ?
I must point out that at the moment I have only been told I am due something, with no indication as to how much it would be.
There is no way of knowing right this minute whether it is ten pounds, a hundred pounds, or a thousand pounds, so my question is how much does it have to be before I declare it ?
As I say, I want to do the right thing if it does indeed run into thousands, but if I am honest, a couple of hundred pounds or so would be nice to have, but I wouldn't want to get myself into trouble by keeping it when perhaps I am not meant to.
Any thoughts guys ?
18/07/2013 7:18 am
Hi A.D.
Irrespective of the amount, the payment will vest in the trustee for the benefit of creditors. I note the point that this particular creditor was not included in the trust deed, however that makes no real difference as the trust deed itself will take account of any payments up until the date you signed it.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
18/07/2013 9:15 am
Hi AD,
I realise that your finances will be tight and sometimes a little stretched so retaining some of the PPI money can sometimes seem like a good idea to help you get by.
As Mark has said, the payment will vest in your Trustee and you should make your Trustee aware of the potential PPI compensation payout. Provide him with details of the claims company and the paperwork that you have received. Even if it's £50 or £5,000 then this still has to be paid into your Trust Deed to repay your creditors as much as possible.
Has your Trustee considered looking into any PPI claim as part of your Trust Deed? Most if not all Trustees are now investigating PPI on all of their cases. The consequences of not declaring the compensation payment and keeping this can be wide ranging and not something I would consider doing as it will normally be picked up in a review.
Best to see out the last 6 months, declare the potential payout and move on with life.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
18/07/2013 9:41 am
Thanks fellas.
Yes David, as I also spoke about in a previous post I am well impressed by the accountants dealing with my TD. They have kept me informed of everything over the last two and a half years.
I know that PPI is a big factor in a TD and can even delay the discharge procedure at the end of it. However, my firm was on the PPI trail almost right from the off, and indeed, during one of the summary reports they sent me confirming that fact, they actually mentioned that they were able to recover a "small amount", their words, from one of the debtors involved which I guess went straight back into the "pot".
As I also mentioned previously, I received a refund of fees from the claims firm that I had the misfortune of ever getting involved with which ran into thousands, but which was refunded back on to the card from whence it came, which is one of the debtors in the TD, so I guess that can only have been a good thing in bringing the debt I owed to them down a bit, and despite not seeing any of it, I obviously still informed my accountants of of this transaction.
