*a PPI agreement from RBS

Hi curr

The legal position is that there is a Trustee in place and he would pursue any potential PPI issues. Unfortunately any agreement in respect of fees would be between the trustee and the ppi company.

Mark

Hi curr,

When someone enters into a Trust Deed they effectively transfer any assets that they have at that point in time and any assets which they may acquire during the period of the Trust Deed over to the Trustee. It's then the Trustees responsibility to try and ingather as much as possible during the Trust Deed to increase the return to creditors.

In all Trust Deed's the Trustee needs to investigation the possibility of mis-sold payment protection insurance. A lot of Trustees will outsource this work to a specialist company who will charge a fee for undertaking the work. The general fees that company charge are between 15% to 35%. Some firms within their group will do this work themselves and charge a fee for doing so.

Most Trust Deed's won't pay the creditors the full outstanding balance back and a % of the debt is therefore written off. In situations whereby an asset has been realised and the ability to repay creditors in full then the Trustee must consider paying creditors their full balance plus statutory interest plus any additional costs.

How much were your husband's debts when he entered into the Trust Deed?

If you find you are getting nowhere over the telephone you could always request a meeting with the relationship manager/Trustee to discuss things. Sometimes sitting down to discuss things can help. I'm always happy to meet with clients to discuss any potential issues.

We have just received a breakdown of all costs involved since the start (which we had never actually received) £14,154.68 was the amount owed at the start. The letter now states that he still owes over £8500. We have had PPI's claims of £11,500, one for £2500 and a small £200 one (Total £14,200). Plus contributions of just over a year of £2000 (TOTAL money in = £16,000) - now they are adding fees on - one for PP1 3rd party of £3105.66 and Trust Dee fees £2328.75 + Agents Fee of £1000. We are gong to end up paying over £25,000 for a £14,000 original debt. Surely that can't be right ! The whole idea, we thought, of the trust deed is to pay an amount (roughly 1/3) and are debt free within 4 years whilst we give up our credit rating and start again from scratch.

Hi curr.

I'm not sure that's how trust deeds should be understood. While debts are often written off, the principle is that you pay over what you reasonably can from surplus income and assets.

As you're experiencing, that can mean paying over substantially more than the original debt total if the funds to do so become available.

WE have just re-read all the pages in the letter and they are still looking for £3500 not £8500. There was a pages which stated the monies which were sitting in the bank. But still the total will still be £20,000 way more than the original debt.

So the PPI's claimed just go to line the claimants pockets ?? If they were used to pay off the debt then the PPI's would cover the total debt - is that not the whole purpose of claiming them to pay off the creditors. We are more than happy to pay the whole debt off earlier than go the full 4 years and only pay 1/3. It is our debt we understand that but to have enough to pay off the debt and more with the contribution already made why are the fees totally £6000 for not even 2 years ! If we paid the contributions for the 4 years with no ppi claims we would only be paying back 1/3 roughly with all the fees included so I am at a loss to understand where the extra fees are coming from. I am also on a trust deed so emotions do run high - we have a little one and it was because of childcare and trying to pay back loans etc that we got into this mess. It has been a hard 2 years but we have managed. I still have 2 to go and when we got that £11,500 cheque in we thought it would wipe at least one of us out. Feeling really low and dejected and feeling like the ppi claimants are just money grabbing. Instead of helping people they are just out to line their own pockets. 🙁

Hi again,

There really should be a ruling on ppi claims whilst involved in a Trust deed, you see frequent posts to this one stating they are are being given a raw deal, or that the TD's are just lining their pockets with all their claims.
My thoughts again....99% of people like myself may I add, who sign up to a TD are obviously struggling to pay off debt/loans etc that they owe to various lenders. After relinquishing the debt through a trustee and signing the contract which gives the trustee full powers over your assets, they still want a piece of the PPI cake that they think they are entitled to. My advice would be to knuckle down for the 4 years, pay your monthly installment to the trustee and forget the PPI claims.

My final thought is that I do not even think that lenders should pay out PPI funds if the original credit which was taken out was not even paid off due to the customer entering a TD.
Just my tuppensworth 🙂

Hi thanks for all your replies - yip I think we are just going to have to knuckle down and get the next couple of years over with. I think being given false hope when the £11500 was offered is where I am struggling. We used to deal with a firm called Kelsom in Glasgow who were fantastic to deal with - you could phone them with any queries, you spoke to the same person every time so when the settlement was offered we phoned them and they said that's great this will ultimately pay off your debts and discharge you from you from your trust deed BUT they were taken over within a matter of weeks and we now deal with a firm called Knightsbridge who are dreadful - for months after the take-over they had no details of our trust deed so we had to keep explaining things over and over and now to hear about all the charges and that we still owe them money after such a large PPi claim after hearing initially it would clear my husbands trust deed and also because we were told it would clear it I stopped paying his part of the trust deed so now I have to include that back into my tight budget. Very disheartening.

It's normal for a claims company to charge for their services, whether they're instructed by an individual or by a trustee.

30% seems to be a very common level of charging in that industry.