£6,000 is a lot of money and I'm sure this will come in handy when you finally receive it back.

I'm keen to find out how this develops Pascal12 as I can't see a way for the Trust Deed to be reopened to deal with the funds.

I'm thinking that you may have spoken with someone who doesn't have a great deal of experience and has maybe gotten a little mixed up with difference procedures.

Keep us updated and let us know how you get on.

Still awaiting a reply from my ex trustee (recorded delivery letter received Friday) but have now received a letter from the bank of Scotland stating that my trustee instructed them to make the cheque out to them and the bank were legally bound to send it to them as requested so nothing else they can do. Starting to feel really helpless and that if the trustee comes back and say they're keeping the cheque I won't have anywhere to turn.

If that happens you'll have places to turn Pascal12, but it might all take some time.

If you've proven to the bank that you and your trustee are discharged, or they already have evidence to that effect, I wonder how they could justify their claim to be "legally bound" to send the payment to your former trustee?

Thanks for coming back to me, it's very much appreciated. I will await my ex trustees response and see where I can go from there. Think a follow up letter will need to follow to both the bank and them. Was also wondering would I write to the accountants in bankruptcy for proof my trustee was discharged?

I think that's something you could ask your ex trustee for Pascal12, though there's no harm in asking the AIB if they can assist with that also.

I think TDA is correct, probably be good to have something in writing from the AIB to provide to the bank.

I don't think the response from the bank changes your position at all & as mentioned, it will be difficult for the bank to justify their stance or comments.

Mark

Hi Pascal12,

It may take 1-2 weeks for your Trustee to receive your letter, review the situation and then provide you with an update. I would give it a little more time for a response to come from the trustee. No harm in speaking with the AIB either.

Perhaps give your Trustee a call to see if they have received your letter. If they say they haven't then your best to post another letter recorded delivery and also email it just to be sure.

Like TDA has advised should they respond and say they are keeping the money then you will have help and support on the forum regarding what to do next.

Let us know when your Trustee responds.

Hi I emailed my ex trustee to chase the letter I sent and got a reply that the latest legal advice they have is that trust deeds can be reopened in these cases and that they would be applying through the court to reopen it. He has said I would have my chance to put any legal arguments to the sheriff at that point. I'm really confused and don't know what to do. Does this mean that they are taking me to court, will my trust deed reopening just be for the purposes of this money or will it be reopened completely. Thanks for your help everyone. Wish I had never applied for this PPI

Hi Pascal12

No, it only means that if you wish, you can be represented at court and object to the Trust Deed being reopened.

You should email the Trustee and ask him to provide:

1. Copy legal advice advising that the trust deed can be reopened.
2. Confirmation under what authority or position he is currently holding the cheque, irrespective of any potential/future legal action to have this e opened. As matters stand, he has no authority to safeguard or interact with this cheque.

Mark

Thanks mark I will do so and let everyone know the outcome.

As an aside, it is worth remembering that you will remain discharged throughout, even if they are successful in being reappointed as Trustee and can take in these funds for the benefit of your creditors. You yourself are not going to be subject to the Trust Deed again.

That is really reassuring Kevin as I was a bit worried it would all be dragged up again. It's only just this month my credit file has cleared of everything which was such a good feeling and was worried it would go back on again. If they succeed in taking the money for the creditors then so be it, I will still be happy to be debt free and carry on working on my credit file as I have been.

Hi I have now received a citation for an application to the sheriff court to reappoint my ex trustee in order to distribute this money to my ex creditors. They have cited regulation 24 of the protected trust deeds (Scotland) regulations 2008 as the reason he should be reappointed. Also in reply to my email regarding the legal advice he had and the authority as to which he is withholding the cheque my ex trustee has had his solicitors write to me advising that the trustee can be reappointed as I didn't advise of an asset I should have had at the time I signed my trust deed. He has also stated that my ex trustee already has the authority to take and withhold the funds as I had previously given him authorisation over my financial affairs and that the money is my creditors and I quote 'I have no right to it' also states it is commonplace in sequestration for a former trustees to protect assets pending reappointment. It's all very matter of fact, like its a formality and they have pretty much already got the money. Also found it interesting that the trustee took around 50% of the money I paid into the trust deed at the time, I didn't relise it was that much.

Back in 2009, how many people were aware of the 'PPI issue'?

How could you declare an 'asset' if you didn't know that it existed at that time?

When were trustees told that they had to look into PPI before closing TDs? (The experts might be able to help with that question). Some time after 2009 if I remember correctly.

Will 'the creditors' get the PPI refund in full,or will some/all of it go to the former trustee? If a portion of the refund will go the former trustee to pay for resurrecting the TD maybe this isn't an altruistic move.

Have the lawyers said exactly which part of the law allows the former trustee to hold this money?

The trustee has been discharged by the creditors - three years ago. The fact that something is 'commonplace' doesn't necessarily mean that it's lawful. Trust deeds are not sequestration. Etc.

I'd be interested to hear the experts view on this. I'd also be interested to know how 'commonplace' it is for TDs or sequestrations to be resurrected. Pascal - if you're writing to AiB about this situation no harm in asking them for that kind of information while you've got pen to paper.

I think candlewick has pretty much summed it up.

The solicitor has provided nothing in his response, other than vague references.

S.24 referred to Any person HAVING AN INTEREST in the Trust deed to the sheriff for a direction of the court in respect of or in relation to the administration of a trust deed. The key point is when a Trustee's interest ceases. This is on his discharge. Similarly you or a creditor would be unable to approach the Sheriff once discharged as the interest ends at this point.

The solicitor has not provided you with an explanation as to why the Trustee is holding onto the funds as he has no legal authority to do so. It makes no difference about prior authority as this, again, ceases with his discharge. If this was not the case, then a Trustee would have an interest in a persons financial affairs ad infinitum which is just a nonsense.

Finally, it will be interesting to see the costs of the court action and the trustee's fees and to see what is left. My guess if somewhere in the region of £100.

Mark