Hi poprey.

This money will go into the pool of funds used to pay your trust deed fees and to pay a dividend to your creditors.

It will mean that your creditors will get more than they might have originally expected.

I'm afraid that it normally doesn't mean that your remaining payments will be reduced or eliminated.

Hi,
Thanks for the reply, surely this will encourage people to claim PPI when they have completed the trust deed. SO that they see the money, what is the difference with me borrowing money from a family member to pay my TD early or be awarded ppi and making that same payment, i dont understand that bit.

It's normal for your TD company to look into claiming PPI on your behalf. My firm did it during my TD but I know some firms leave it till right at the end of your TD, often holding up your discharge until it has all been looked into.

Hi poprey.

Part of the trustee's responsibility is to investigate whether PPI claims can be made to boost the returns to the creditors from a trust deed.

If they haven't already, I'm sure your trustee will be in touch with you about starting this in due course.

The ability to claim PPI was an asset that existed when your trust deed began. It therefore vested in your trustee, who is responsible for gathering that money if it exists. It's therefore money that was already owed to your trust deed in effect, even if it doesn't feel like that having just received the award letter.

Money from assets goes into trust deeds in addition to what you can reasonably pay from income.

Money from a relative (which wasn't already due to your trust deed, unlike PPI) might be accepted by a trustee instead of your monthly payments from income. That's because there would be no loss to your creditors if this happened.

I was lucky in that my company was told there was no PPI due on a credit card I had and after I, and my trustee, had been discharged, the CC company decided to look again at the PPI claim and make an offer of redress. That then came to me.

many thnks for the replies guys