Hi

Unfortunately the PPI award during your trust deed was an asset, regardless of whether the creditor was part of the deed or not.

Has your trustee been discharged?

Hi Cody

As tinsoldier has confirmed the PPI was an asset which should have been ingathered into your Trust Deed and you had an obligation to notify your Trustee about this.

Do you know if your Trustee has been discharged?

We'll keep this on one thread Cody.

You posted on a new thread:

"Hi David

Thanks very much for getting back to me. We thought that since our bank was not included in our debts then this wasn't relevant. The last correspondence from our Trustee was on 12th Sept saying he will obtain his final discharge "following the distribution of the estate and following his application to creditors for discharge" - so not sure.

We are honestly worried sick about this. Could they re-open trust deed? or what's the worst case scenario.

Any help would be great. Thanks"

You also posted on a new thread:

"Hi David

Thanks very much for getting back to me. We thought that since our bank was not included in our debts then this wasn't relevant. The last correspondence from our Trustee was on 12th Sept saying he will obtain his final discharge "following the distribution of the estate and following his application to creditors for discharge" - so not sure.

We are honestly worried sick about this. Could they re-open trust deed? or what's the worst case scenario.

Any help would be great. Thanks"

Cody,

If you check on the Register of Insolvencies you'll be able to answer David's question about whether your trustee is yet discharged.

You can post the answer on this thread using the "reply" function.

hi just checked and there is no date showing for the "trustee discharge date" but showing our discharge date as 31.08.17.

Hi Cody,

If it’s brought to the Trustees attention prior to their discharge then the Trustee will ingather the PPI funds that the bank have said they will send to them and then consider the position regarding the funds which you previously received but did not disclose to the Trustee.

How much PPI did you receive that you didn’t disclose to your Trustee?

In the very few (2 or 3) cases similar to yours that I’ve dealt with we have pursued the bank for the funds as the bank should have carried out an insolvency check to see if you were in a Trust Deed prior to paying the funds out. We have been successful in obtaining the funds from the bank but then the bank have pursued the client for the funds back.

If both you and the Trustee have been discharged then it’s difficult to reopen a Trust Deed right now and something which is currently pending appeal at the Supreme Court.

Cody replied in another thread:

"Hi David we received £4.500."

Hi Cody,

As David has written, the Trustee will almost certainly take the new extra payment to help repay more to your creditors.

We don't know what will happen after that, but the path of least resistance for your trustee seems likely to be that they insist that the bank pay them the sum of money they paid in error to you previously.

If that happens, the bank will then have to decide whether to seek repayment from you to make good the loss they suffered as a result of your failure to disclose the payment to your trustee.

I'm afraid though that you're probably just going to have to wait and see what happens.

The error seems to be the banks here.

Cody accepted the payout in good faith, and also genuinely thought it didn't have to be disclosed.

The error seems to be the banks here.

Cody accepted the payout in good faith, and also genuinely thought it didn't have to be disclosed.

Hi tinsoldier,

I think the trustee involved would argue that Cody was informed that they should report windfalls.

Cody might not have recollected this, or might have misunderstood this. I'm not making any judgment about how Cody went about this.

Cody didn't report the windfall and kept the money. That resulted in creditors potentially not being paid as per the agreement that Cody voluntarily entered into. I think most people would agree would be an unfair outcome.

Had Cody reported the windfall to the trustee, it would have to have been paid over. If the bank or the trustee now seeks this amount of money from Cody, overall Cody will have been no better and no worse off than if the money had been paid when it should have been.

By the way, I agree that the bank hasn't handled this well.

I don't know that I agree they should bear the full financial cost of how this played out though.

Agree with you TDA - just think this could have been avoided had the bank followed procedure.