Hi gillian.

As Kevin has said, there may be no good reason for discharge of your trust deed to be delayed, and it also may be possible that your claim (if there is one) is completed by then anyway.

The PPI claims firm will take a fee. We're not sure whether the various trust deed firms that are instigating such claims receive any financial reward connected to this process themselves. It would be great if one of them could tell us either here in the forum or offline. That would help people to judge whether the PPI claims process is being used purely to increase the dividend paid to creditors (that have not missold PPI).

I dont think it would be right that debt solutions like a trust deed prevented PPI claims from being made. To do so would be to protect and reward the lenders that have ripped people off.

I really cannot see any reason why you should suffer a delay to being discharged from your trust deed due to the late requirement to look into this though. Hopefully that will not turn out to be the case.

If only I hadn't chucked the letter, it had a bit in it about fees. I think it was that on any claim, a maximum of £3500 could be charged in fees and anything over and above that would go to the trustee. I'm sure any time spent on this will be billable hours for the trustee. Fingers crossed that it won't delay things but as I said in another post ages ago, my trustee reckons it'll be 4 months to get me discharged. At the end of the day, I'll get discharged at some point. Just galling that they try the PPI claim thing now.

Thanks gillian.

If someone has the letter that gillian refers to it would be interesting to know about the fees connected to the claim.

The letter I received was from Invocas. Letter stated that their partner company who would be investigating the claim would take 30% fee if sucessful but from what I read Invocas wouldnt be taking any fee and there was no charge to me for this and any monies claimed back would be put into my Trust Deed. They gave me 14 days to object. I emailed them and informed them that I objected and received notification back that my objection has been lodged and no investigations into PPI mis-selling will be done on my case. Not the answer I was expecting as I thought it is something I would have no choice in but one I have to say I am very happy now 🙂

Thanks for that Newbie65, it's really helpful.

I wish every trust deed firm that has got involved in PPI claims was taking the same reasonable and responsive approach.

By the way, I understand that a 30% fee for a claims company is pretty much the market standard for PPI claims.

I emailed them and haven't heard anything. Was it a general Invocas email or a specific? My administrator changed and I got an email address for another one. I didn't get an email back saying I had the wrong address. Hopefully mine is off on holiday just now and hasn't had a chance to reply.

Hi. My administrator/case worker has changed a couple of times so I no longer have a point of contact but I emailed the general Invocas address on letter. I sent it yesterday and got a reply back this morning. Like you say though, perhaps your administrator is on holiday and will deal with it when they get back. I hope you get it sorted out 🙂

Best of luck gillian, let us know how you get on

Got letter,Invocas, the letter gives you 14 days to stop them seeking ppi or unfair bank charges..call them up if still within 14 days and ask them not to bother.THIS IS OPTIONAL. This is a claim and not an asset held by yourself, they have no right to it.

Hi 36monthsareover.

Some trust deed firms are seeing this as a potential asset that they have a duty to investigate.

Like is the case in some other areas, firms seem to be forming their own views on this rather than there being a general position.

The whole thing about PPI is that you can claim if you were missold the PPI. You have to sign a document to say that you were missold the insurance, and that decision obviously lies with yourself. There has been recent articles in Insolvency Journals about the Trustee's duty to claim back the PPI, but again this should only apply if it has been missold. Only you know if the PPI was explained properly, but some people found that they were told they would only get the loan if they took out PPI, and that is obviously wrong.

Hi, I dont understand how this can be classed as an asset, surely an asset is something that is unarguably owned by the trust deed holder. Car( you cant opt out of a car), house equity ( you cant out opt out of that) This looks to me to be another set of rules dreamt up by greedy individual that is keen to earn fees out of the misfortune of people who have fallen subject to the debt and had no where else to go, are they honestly saying that this is solely in the interest of the creditors surely most people are in debt to the bank so we are claiming money from them and giving it back to them minus the IP fees????.............the fact that you can OPT OUT , shows that its not right....i just hope every ones opts out and when their trust deed is over.. they go and claim for themselves.. perhaps they might get some of their money back.

Hi 36monthsareover.

The fact is that certain Trustees see the potential for such claims to contribute extra funds to repay creditors, and in some cases I'm sure that this has turned out to be correct.

Who is the greedy individual (or individuals) that you are thinking of?

I'm not sure that the fact that one trust deed provider has given their clients an opt-out from making PPI claims makes it "not right". I'd say, from what I've read, that the firm concerned should take some credit for taking this approach in contrast to some of the other things we've read about other firms really pushing their clients hard down this path.

Making PPI claims on accounts that were included in a trust deed, after the trust deed has been finished, isn't likely to be a very profitable exercise for everyone I'm afraid.

"The fact is that certain Trustees see the potential for such claims to contribute extra funds to repay creditors, and in some cases I'm sure that this has turned out to be correct"

36 - I guess my point is What benefit is this to the Trust deed holder? or does it just increase the profit made by the IP?

Who is the greedy individual (or individuals) that you are thinking of?

36 - I am refering to the companies that are badly managing the trust deeds.It is surprising just how much of the money i have paid to the trustee is being eaten up by the IP fees.

I'm not sure that the fact that one trust deed provider has given their clients an opt-out from making PPI claims makes it "not right". I'd say, from what I've read, that the firm concerned should take some credit for taking this approach in contrast to some of the other things we've read about other firms really pushing their clients hard down this path.

36 - Yes i agree, but why are they pushing people? People in Debt need help not to be prayed upon by ruthless greedy companies (we have all seen the adverts on TV, for loans at APR of 4000%)

Making PPI claims on accounts that were included in a trust deed, after the trust deed has been finished, isn't likely to be a very profitable exercise for everyone I'm afraid.

36 - Why would this be?

Hi 36monthsareover.

There is little benefit to the individual in a trust deed from a PPI claim being made as part of their trust deed. We're told that the trust deed firms that are doing this aren't necessarily making any income from the claims (though this isn't confirmed - but if true means the Trustee will not be making any extra income) and that any money from the claim will be split between the claims operator (often around 30%) and the creditors.

The fees for your trust deed were proposed by the trust deed firm, agreed to by you, and then accepted by your creditors. I do understand that they can seen as being quite high though.

I'm not sure that people are being preyed upon when asked to make PPI claims, and certainly not where an opt-out is being offered. I do think that it is quite wrong that people have their discharge held up because such a claim was sprung on them very late in the trust deed process though.

After a trust deed has been completed it's pretty unlikely that any lender (that has written money off in a trust deed) is then going to physically pay out on a PPI claim (even if they admit they were involved in mis-selling). They may consider that there is no legal basis for them to pay out anyway.

I think anyone who is thinking about signing a trust deed might want to make themselves aware of whether the company they are about to go with will ask them to submit PPI claims. They can then make their decision about whether they are happy to sign up to that, or to go to one of the other trust deed firms (which are in the majority) which are not asking their clients to do this.
I appreciate that this isn't much help for people that now find themselves being required to make such a claim without ever having been told that this would need to happen (and especially where it has been done avoidably late in the process and discharge is delayed).