Hi kevin, i think that's the situation im in at the minute. I have paid my final contribution and have been discharged but my trust deed company are telling me they are still trying to claim back my ppi. So does this mean im discharged as the debtor but thr trustee is not discharged? Ive had a letter in from canada square operations saying im due £2.5k and thought becuase i am discharged the money would come to me. But from what your saying it looks like this money will still go to trustee. Am i right?

I'm afraid so, Laura. If the trustee is still in office then they will expect those funds to be paid to them. In fact it is likely that the cheque will be sent directly to them.

Oh well, at least I know where I stand. Thanks for clarifying.

RBS will keep any PPI repayment to clear outstanding accounts no matter how old the account is or how long you've been discharged it's legally allowed 🙁

If the PPI was missold RBS need to look at how much was paid prior to sequestration and repay this. The bank is at fault for taking too much in loan repayments to allow for job loss etc when they didn't need to and this additional insurance has likely been the catalyst for sequestration. There's 2 sides to every story and compensation should be paid.

Well.....I had frontloaded, single premium PPI - therefore the PPI was ALL paid prior to being in the trust deed, and, in fact, had it not been sold, it is highly likely the loan debt wouldn't have even been in the trust deed - the PPI was £1549 and I owed £1656 to them at the point of signing the trust deed.

In the eyes of the banks, this is irrelevant. We owe them money that wasn't paid off, they owe us money, so they use one to cancel the other out.

This is the relevant extract from the Ombudsman website

"We take into account the law, which allows people to ÔÇ£set offÔÇØ closely connected debts. This means that one person (A) can deduct from a debt that they owe another person (B), money which that person (B) owes to them (some businesses also refer to the ÔÇ£banker's right of set offÔÇØ, which is simply an expression of the legal right of set off ÔÇô which may or may not apply depending on the circumstances).

We often decide that it is fair for the business to ÔÇ£set offÔÇØ the compensation payable for the mis-sale of a PPI policy against the consumer's arrears on their account ÔÇô and remove or reduce those arrears. But we would not consider it fair for a business to require the consumer to reduce the balance below what would be outstanding now if the PPI had not been added."

I really hope you don't think I'm being negative towards you - I just want to help by using my experiences with RBS to help other people going through the same thing.

Not negative in any way. I'm just disappointed that it's come to this stage. My loan had been refinanced several times between 1997 and 2008 and to Trust Deed in 2008 to 2011. Looks like RBS are in the driving seat on this one. Will wait for outcome but it's looking unlikely that i will get anything. I just think the number of times I was refinanced didn't help me to address my problems. Bank should have said no and offered more help to resolve but that didn't happen. On the bright side I'm 2 half years discharged, managed to keep a job all the way through, paid tax which the government used to bail out RBS! Rant over.