Notifications
Clear all
Scottish Trust Deed Forum
4
Posts
3
Users
0
Reactions
1,369
Views
Topic starter
14/10/2012 12:58 am
My partner has a PTD which was due to end this month.
When he entered into the TD, he was paying HP on a car which finished about a year ago. Since then he has sent off all the required paperwork to the trustee.
His monthly payments didnt change until he was separated from his wife, when the trustee tried to double his monthly payment! After a lot of arguments with the trustee, they did agree that this was totally unfair as his expenses were then actually higher because of maintenance payments via CSA and extra living costs and they reduced the payments back to the original amount.
The trustee is now saying that he is going to extend the TD by six months as due to an administrative error his payments didnt go up when the HP on the car ended.
Can they extend the period of the TD due to their own error? I think that this is totally unfair, as it was their error not his. They were aware of the date when the HP finished, they were provided with monthly bank statements, pay statements etc.... They have admitted that it was their error that the monthly TD payment wasnt increased and yet want to extend the length of it! Can they do this????
14/10/2012 1:22 am
I have a horrible feeling that they night be able to do this tulianne [:(]. I hope that one of the trust deed experts will be able to say otherwise.
I know that it is the trustee's duty to gather in funds in order to maximise the dividend to creditors etc etc
However, my personal view is that in cases where the trustee makes an error - such as failing to act on information given to them by the person in the TD, and hence not increasing payments at the appropriate time - then the trustee should take the hit. In his/her fees.
That way the dividend to creditor is not affected. And the person in the TD doesn't (literally) pay the price for the trustee's error.
I suspect, however, that my view (which I see as natural justice) is probably pie-in-the-sky in terms of the real world.
It's not often that I hope I'm proved wrong - but this is one of those times!
Topic starter
14/10/2012 2:42 am
Many thanks for your reply Candlewick. I really do hope that on this occasion you are wrong!!!
He has supplied everything they have asked for, never missed a payment in three years, and has never been late with a payment either.
Not only that, he will end up paying more that he would have paid had they not made the error, ie £136 (or it might have been £236)for about 6 months, now he will have to pay £400 per month for 6 months!
Hardly fair is it?
14/10/2012 7:15 am
Hello tullianne.
This does sound very unfair given that your partner has done all of the right things.
Candlewick is right that your trustee has a duty to collect this missed money one way or another for the benefit of the creditors. I'd love to think they'd take it from their own fees as a response to their error, but I cannot remember a case on this forum over the years where this has happened I'm afraid.
A trustee might argue that the extension isn't actually unfair because, in total, you're still only paying the same overall and had the benefit of this extra money for a while.
Except of course... your partner is being asked to pay back a sum greater than this which is confusing. How much do you think that the car is worth?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
