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Topic starter
29/05/2015 6:15 pm
I'm looking for some advice. I started a TD in July 2011. I made some additional payments due to equity and the final payment was in Nov 2014. I have received my Form 5 in Jan 2015. I signed paperwork to say if a got any PPI paperwork that I would inform my trustee. My debts were £17,000 and I paid £12,000 to my trustee. I have just received information from the bank that I am entitled to £15,000 backdated PPI money (which my trustee claimed on my behalf) and that the cheque would be sent to my trustee.
I contacted my trustee who advised that they have not paid any creditors yet and were awaiting the outcome of the PPI claim. I understand that they would be looking for the remaining £5000 (as I only paid £12,000) and also interest at 8% per annum. However, my trustee informed my that only £6500 out of the £12,000 I paid is getting paid to the creditors and the rest is paid to them for organising the trust deed. They said that this would mean that the creditors would be looking for £11,000 plus 8% per annum interest.
Could someone give me advice if this is correct. Also if they do take all the money how does this impact on my credit file.
29/05/2015 11:11 pm
Don't want to be the bearer of bad news, but I don't think you're going to have much luck here. Your trustee will take fees of around £5-6k and this comes off your contributions. Your creditors are then due their full amount plus interest as you say, and you will be entitled to what's left. With regards to the credit file, I don't think there is much benefit for you hear either.
Ally
SkintAlly
30/05/2015 12:59 am
Welcome to the forum charley43.
You've already had good advice from SkintAlly.
Where it becomes affordable, you also become responsible for the trust deed fees. If you weren't your creditors wouldn't be paid in full.
The proposed fees will have been set out in the arrangements that you agreed to when the trust deed was set up.
Sorry I can't give you different news.
I'm also not sure there will be any material benefit to your credit status just now as a result of this.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
30/05/2015 8:24 am
I have been reading some other threads and this appears to be a common occurrence. Will the trustee take additional fees for processing the ppi claim? Another point will the 8% per annum interest be for the 3 years of the trust deed or to date which is now 4 years?
Topic starter
30/05/2015 8:25 am
Sorry forgot to thank you both for your advice
30/05/2015 12:14 pm
Hi charley43.
The fees here will be time-based, so some cost will occur. Not much I'd have thought though. The fees might not go beyond the original estimate in total though (which you'll have agreed to - as will your creditors - at the start),
A much bigger cost is likely to be the fee charged by the claims agent (if used).
I think interest will apply for the full period to date.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
30/05/2015 1:38 pm
Thank you TDA. A cost was agreed at the start then an additional £800 was applied by the trustee prior to my discharge which, to my knowledge, the creditors gave no objection. I was just wondering if they would add additional fees again as I was not asked if I agreed with the extra £800. I received a copy of the letter stating they were only asking for the creditors to agree.
Is it fair to say the longer the trustee takes to deal with the ppi claim will result in more interest being paid?
30/05/2015 5:04 pm
That probably is the case with interest charley43. It goes to you creditors though; there's no incentive here for your trustee to delay things.
If you don't believe that any new fees are justified you'll have the opportunity to object to them.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
30/05/2015 6:11 pm
I'll leave it for a few weeks and then contact them for a timescale for completion and also their discharge date. Thank you for your advice TDA.
