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Scottish Trust Deed Forum
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Topic starter
31/08/2011 8:30 pm
I wonder if any one can help, i have a secured loan which i have ppi on which complained about because i belived i had been miss sold it. I received a letter today to say that i have been miss sold the policy and am getting the whole amount of the ppi taken off the original loan. The ppi was £7049 they are also taken off the interest that had been added to the loan for the ppi which is £2184.51 and the repayments made to the loan account in relation to the ppi are £2640.27. They have given me 2 options to have this money paid back
1:by cheque but because i have a trust deed i need to confirm the name of the company (i need to know if this money will be paid to the trust deed instead of me)
or 2: Thati could leave the repayments on the loan as an overpayment and reduce the loan amount.
Ineed advice on what to do and how this would effect my trust deed as my payments on the loan will be reduced by either £60 or £80 per month depending on what oppsion i take.
Thank you
bcrighton
31/08/2011 8:41 pm
Hi sunflower1
Ooooh! an interesting one. The debt isn't included in the TD as its secured, however the Trustee may see this as acuirenda ( a post trust Deed asset)
To be honest, I have heard of a large number of cases where the company have stated that they will only reduce the original borrowings by the payment and not release the cheque to the individual. Not sure of the legalities of this, but I suspect the loan company have the upper hand and its certainly worth looking at.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
31/08/2011 9:51 pm
Hi Mark
It states on the form that if i want the cheque i have to state if i have been subject to a personal insolvency procedure, such as bankruptcy or individual voluntary arrangement and if so supply details. Not sure if this means that the check will be paid to trustee.
bcrighton
31/08/2011 11:13 pm
Hi Sunflower1
As Mark saysthis is not an easy one, but I feel if they are asking for the name of your Trustee, the cheque will be made payable to them. If the money is paid to reduce the debt, and your payments are reduced, you may end up having to icrease your contribution for your Trust Deed!! I know.......you can't win.
I would suggest you are up-front with your Trustee, and maybe you can come to some sort of compromise that suits you both.
Shona is not currently posting in the Trust-Deed.co.uk forum.
01/09/2011 10:57 am
Hello sunflower1.
Do you have any debts to the secured lender that are included in your trust deed?
If not I suspect that the cheque will end up going to your Trustee. No harm in asking your Trustee if the money can be taken off your loan balance though so you can increase your trust deed monthly contribution. If that were allowed it would be good news after the trust deed ends with a lower loan repayment.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
02/10/2011 11:14 pm
Just heard back from Nemo who the secured loan is through, they have had it confirmed by Trust that as there is no debt owed to them involved in the trust deed that the money due back can stay as over payment on loan as long as it comes of the end balance of the loan.
bcrighton
03/10/2011 9:09 am
Hi sunflower1.
Thanks for letting us know. Are you pleased with the outcome?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
