Hi again bluelemon_peel.

It is common now for trust deed firms to investigate whether PPI claims might help increase the pot of money that can be used to repay creditors. They have been advised to do this by the organisations that regulate them so have little choice in the matter.

I'm guessing with the Equifax credit report, but I suspect it's got something to do with trying to identify as many accounts as possible for which PPI claims might be made. For example, this might include a loan that was fully repaid prior to your trust deed starting.

As always, you should feel free to ask your trustee if you'd like confirmation or reassurance on that subject.

I would have thought that the Trustee would only be allowed to investigate the PPi that was covered under the TD and not PPi on any fully paid loans ect since they were not part of the TD. For example a mortgage that was fully paid back in 2000 is technically not part of the TD.

This seems a very grey area with no real regulations in place and allowing, in my opinion, Trustee which I do understand is adding more to the creditors pot who in theory agreed to accept say 15p to the pound and now will receive more. Not to mention the fee the Trustee receives, our case 9000.

Is this advice to investigate non creditors imparted by the organisation that regulate them or a choice on the Trustee part.

This subject has caused some confusion for other forum members as well bluelemon_peel.

In reality the fact that claim relates to an account that happens to be included in the trust deed (or not) isn't relevant. The relevant fact is that making claims on any accounts will help to repay the creditors that are involved in the trust deed.

That's not much different to other assets or potential assets. For example, equity in a home may have built up years before a trust deed began.

The fact that a creditor agreed to potentially receive a dividend of 15p for each pound owed is only part of the story. They actually agreed to the expectation that they would receive 15p in the pound plus the realisation of assets, potential assets, and windfalls that might arise later.

Each firm will have their own process for investigating the potential for PPI claims to help repay creditors. Their regulators are likely to check these processes to confirm that they are acting in an appropriate way.

Hi bluelemon peel

The advise by the governing biodies to pursue PPI is fairly recent.

The proposal at the start is what creditors agreed, however the Trustee has an obligation to engather all assets for the benefit of creditors. It is no different from having an agreed proposal and you then win on the lottery, if additional monies are there, then there is an obligation to pursue these for the creditors.

As for fees of £9k!! Incredible, I have never seen fees at this level and have actually had trading liquidations with smaller fees.

Mark

Maybe the £9000 fee relates to two trust deeds rather than one bluelemon_peel?

Yes, That's correct is for two trust deeds.

Hi Mark

I can understand the thinking behind investigating PPi within the TD and I believe other members will agree but had these assets been available at the time as PPi only raised it's head after the court ruled in favor of the banks in regards to bank charges levied we would have contacted the creditors directly and made an acceptable repayment agreement for the same length of time and in theory they would receive more since the 9000 would be in their pot and not in the Trustee's pocket. I'm not saying it would have been easy by no means however 9000 can be a great motivator.

As for any assets this was disclosed at the outset and our Trustee suggested our second vehicle should be added to the pot and within a week or two of signing the Trust Deed the car was gone and we retained the family car.

And this is only my opinion when Trust Deeds were less common there wasn't as much information around nor was there as many offering their services (nowadays you can't walk out the door with tripping over them) and many people caught in unfortunate finical situations looked to the the Trustee as their savior ( not literary mind ). In our case due to having a young family it was suggested to us that a Trust Deed would be our best option since sequestration/bankruptcy was not a good option we were advised.

I'm not saying that sequestration is a good option but had it been explained in more detail it might have been a better choice for us as individuals now due to the equity we might end up having to sell up regardless of the TD.

Can a creditor who objected to a trust deed at the outset still be able to take legal action?

Do Trustee gain more from Trust Deeds or sequestration?

Hi bluelemon_peel.

I cannot necessarily see how sequestration would have been a better option than a trust deed. Having said that, if you eventually find that you have to sell your property it might be that there isn't a great deal to choose between the two.

You are protected (by entering and completing a protected trust deed) from all of the relevant creditors, even if they raised an objection at the start.

One of the reasons that creditors agree to protected trust deeds in the first instance is that they perceive the return they'll receive will be greater than that which might come from sequestration.

In terms of which is the better fee-earner, that really depends upon the details of a case.