Hi mae84 and welcome.

Is 40% excessive? I guess that some people would say yes and others would say no... so it's really a matter of opinion. Straightforward (non-insolvency) PPI claims are often charged at 25%-30%.

I doubt that securing a service with lower fees would result in you keeping the difference. I think that your trustee would still want to gather that for your creditors.

Are you being swindled? Well... it's probably your creditors that will end up bearing this 40% cost rather than you isn't it?

I note that Credo Claims appear to be based in Grantham (the same town that Payplan is based in) and on their website advertise a success fee of 25% plus VAT. There's also this statement on their website:

"We would like to make you aware that you have the right to seek further advice or shop around. Alternatively you can make the claim yourself, the Financial Ombudsman Service offer a ÔÇÿfree service' for your complaint if you are not able to resolve the matter with your lender/provider".

However, it's probably the view of your trustee on the above that you should seek before making any final decisions.

Having claimed PPI in the past (before entering into my trust deed) It was relatively simple process that would at most take 2-3 hours of your time at most.

To think that some company will be taking 40% of any payout sticks in my throat especially when I would be more than willing to go through that process myself for the same or less of a fee and yet my hand are tied.

It also begs the question if my trustee is doing what is best for the creditors or his employer? I was under the impression the trustee was to act impartially to get the best for my creditors?

Thank you very much for your help. This forums is an absolutely great resource helping vulnerable people and you are at the heart of that.

Hola,

Hope everyone is well and looking forward to Christmas 🙂

Just a quickie for Mae84, why does this stick in your throat that Credo are getting 40% of any PPI that is due? Surely once you enter into a trustdeed, any money gained or lost is no longer your problem? I always find it quite remarkable that because individuals who find themselves in difficult situations (like myself not too long ago) not only want their debt written off but also want a piece of the PPI for loans that they haven't even paid off. When I entered my Trust deed, the only thoughts I had were to get the 3 years done and carry on with my life no matter what!!

ps..your not being swindled...you obviously entered the trustdeed knowing full well your monthly payments??

Just my thoughts 🙂

Well put it like this.

You pay tax I assume? That money is no longer yours right? But you would still get annoyed if goverment bodies pissed it up a wall? Same logic.

H'mm not quite sure I get your logic, basically what you are wanting is to pay tax with one hand, receive it back with the other, then expect all the benefits for nothing...the point I am trying to get across is, when you enter a trust deed just get on with paying your contractual payments and before you know it you'll be free again...it's a great feeling 🙂

Well its a pretty simple concept. People dont like to see money they pay towards something being wasted. Personally I couldn't be the ostrich with their head in the ground just hoping things will work out.

I agree that the money is no longer mine, but to see it wasted will always piss me off no matter the circumstances be it tax, PPI claims whatever.

I honestly think it was a legitimate question as well, because if Its not going to my creditors (which it isnt as credo isnt a creditor), then whats the difference to my creditors if I claim the PPI and get the 40% refund? There is no difference because eitherway they onoy get 60%. I would rather check to see if its an option than just sit back and watch what could be thousands of pounds go to some company for 3 hours work at most.

Something I've learned from working in debt advice is that people take quite different attitudes and views towards the repayment of their debt and the interests of their creditors.

Many clients tell us that they prefer to enter a protected trust deed rather than bankruptcy precisely because, in their perception, it's a process of trying to repay what they can rather than to avoid repayment. Sometimes people enter really long debt arrangement schemes (rather than a trust deed or bankruptcy) which might be said to be in the interests of their creditors much more so than their own best interests - primarily because they really want to fully repay what they owe.

For other clients things might have just gone too far - perhaps the debts have caused significant problems for them personally and/or those around them for example. They sometimes simply want things wrapped up and put into the past as quickly as possible.

Then, of course, there are all types of views in between.

Both types of views seem perfectly understandable to me. Like everything else, people see the subject of debt and repayment differently and in the context of their own unique lives.

I must say I tend to agree with mae84's opinion on this. Maybe not in this case, but in some cases that 40% may have been enough to pay off the debts and finish a Trust Deed earlier.

It doesn't sound like great value for creditors either, which a trustee is meant to keep uppermost in their mind. This is why Grant Thornton handles all PPI claims in-house - much more cost-effective and a better outcome all-round (except for the claims companies who aren't making a killing!)

I can understand the frustration of a company taking 40% of what you have experienced you can achieve with a few hours work.

My thinking is that if you were to 'earn' that yourself, it would become income which you would need to declare and you most likely would have to pay a minimum of 50% of those earnings to the Trustee.

On the other hand, if you were to achieve a PPI payout yourself, it would be a higher amount to put towards your Debts, which may, or may not, settle the whole amount owed (debt, interest and trustee fees).

In my own experience, the subject of PPI was carefully guarded by the Trustee (just in case I had it paid to me in error). I understand that the Trustees have a legal obligation to pursue PPI and they would have to prove due diligence in this. I suspect the governing bodies would not look favourably on a Client pursuing their own PPI and retaining the fee. Apart from anything, what is there to say that you are competent and would do this in a manner that would maximize compensation (from a legal and due diligence position)?

And what motivation would there be for you to achieve the PPI claims if you could not receive any payment for this unless it would pay off your Trust Deed.

I would say it is a conflict of interest to have a client pursue their own PPI when in a Trust Deed - but that is my own view.

Like Greggy, I took the approach that I had such relief from the Trust Deed and my payment was only paying a percentage of the debt back that anything they could get from anywhere would enhance the repayment of my incurred debts and I focused on completing my Trust Deed payments. In my case, there was no PPI but there was a very small amount of wrongly charged interest repaid. I would not have known about ability to reclaim wrongly charged interest.

Perhaps if the PPI repayment was potentially high and it could potentially allow the trust deed to be concluded I would discuss this with the Trustee. Otherwise, it is only creating unnecessary internal angst.

Have you discussed this (calmly) with your Trustee and put the position that you may save money that can be added to the Trust Deed - and if you have calculated that it could clear off everything owing to the Trust Deed plus interest and fees?