Welcome to the trust deed forum trish176.

Sadly this is a story we have heard here many times.

A small number of trust deed firms, a minority, have decided that they could or should direct their clients towards making PPI claims hoping that more money can be raised to help repay the creditors of their clients.

Most firms aren't doing this, but I do understand the arguments used for doing this by those that do.

Your firm could have asked you to do this at any point in the last three years. If any claims had been started months or years ago they'd almost certainly have finished now and you'd be discharged from your trust deed.

Instead your trust deed firm hasn't bothered to do this until after the point that you have dutifully completed the obligations you agreed to, hence guaranteeing that your discharge will be held up for an extra indeterminate period.

There isn't much you can do about this I'm afraid, a situation that the firm concerned seem to be relying upon by springing this on you now. Sadly it seems your discharge will be delayed.

In my opinion it demonstrates a complete disregard for their clients if this is the way your firm behaves. Feel free to name them if you'd like others to take this way of operating into account when they choose a firm to help them with a trust deed in the future.

Company concerned is Invocas Financial

I got the very same letter this morning and will be calling them on Monday to let them know I willingly signed up to PPI when offered. I happily accepted PPI when it was offered so on that basis, it wasn't mis-sold. I'm sure they'll try to get round that but I would be prepared to put it in writing. I'm also sure this'll delay my discharge after Januarys final payment.

Hi,

we got the same letter yesterday morning, we also agreed at time for ppi, plus we tried claiming before and had no joy, we are also with invocas, aslo what is worrying is that we hav again another change of trustee, this must be about the 4th change in a matter of weeks,

These types of claims are being processed much quicker by the banks now.

Hopefully, if claims have to go ahead, there will be nothing like the delays that some people were writing about here a few months ago.

Not a great situation obviously, but hopefully not one that is going to roll on for months and months.

A warning for anyone that is being required/encouraged to submit PPI claims connected to their trust deed.

The BBC website is reporting that any interest paid out as part of a claim will be subject to tax. In some instances this will be deduced at source, in other instances people will be expected to notify HMRC of a payout themselves.

If you're making a claim connected to your trust deed please insist that your claims company and Trustee handle the claim in such a way that you do not see all of the money paid into your trust deed and then get landed with a extra tax bill afterwards.

Good advice from trust deed assistant. The other thing that I would say is that if you signed your trust deed after 1st April 2008 then there should be no reason why your discharge is delayed - you can be discharged despite your trustee retaining an interest in any ongoing PPi claim and should insist on this happening. This was due to a change in the law effective from that date.

That's a very good point Kevin.

I don't suppose anyone could really argue with a justifiable PPI claim being used to help repay creditors if trust deed discharge is not held up for the individual concerned.

Hopefully those firms that are instigating PPI claims as part of a trust deed will operate in this way for post April 1st 2008 cases.

I too got a letter from the same company advising me they are going to start investigating my case, less than 5 months before my Trust Deed is likely to finish. I have informed them today that I don't believe I was mis-sold but I think I will be advised that the investigation has to go ahead anyway! Not too happy about it but what can you.... 🙁

Name and shame!

The things I find hard to understand is that as TDA says, these companies have had 3 years to deal with this, why wait till, in my case, 2 payments before completion? Also, the logic seems flawed. They'll delay discharge to claim PPI from creditors who have agreed to the conditions of the trust deed, to pay less than the claim back to the creditors due to fees they'll take themselves and have to pay to the companies doing the recovery of PPI. I don't get what the point is. Why can't there be conditions that if you've had to enter debt management or insolvancy, you cannot claim PPI.

I have also completed forms claiming back PPI on an old loan and am still waiting to hear about this. This was done weeks and weeks ago before we even contemplated signing a TD. Does this mean even if we do get anything back from this - it will all have to go to the trustee?

Hello up2hidoe.

It does I'm afraid. Windfalls such as a payout from a PPI claim are used to help repay your creditors. As such you'll almost certainly be required to pay the money, if it comes, into your trust deed.

I cant help but feel I wish I hadnt even gone to the bother now. I wont hold my breath that I'll get anything back anyway but not worth even looking forward to now!