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Scottish Trust Deed Forum
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Topic starter
22/05/2011 7:23 pm
Hi all,
A question for the experts here.
I'm in a protected trust deed with four payments left to make.
I have two loans listed in the TD with Northern Rock
Loan 1 £3,939
Loan 2 £5,162
Today i recieved a letter from the collections company they must have passed my debs on to. To my suprise they want to settle the two loans at an extreamly reduced rate.
The £3,939 they want to settle for £787 and the £5,162 loan they will settle for £1,032.
My question is if my trust deed went with this payment my debt would be less by £7,282 and my trust deed would be over as i would have already paid my other debt.
Whats your thoughts? I know i only have four payments to make, it would just be nice to have it finish sooner.
Cheers
22/05/2011 9:53 pm
Hi BigEck.
These types of letters are often sent to people that have oldish outstanding debts.
I doubt your trust deed company would take this offer up but there would be no harm in making them aware I suppose. I also wonder whether the company that sent the letter to you is aware of your trust deed and whether the letter really should have been sent.
Have you paid enough into the trust deed to cover these amounts, all of the other debts and the fees and costs of your Trustee?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
22/05/2011 10:02 pm
Hi TDA,
I think so... the rest of my debt minus the loans come to around £3,800 and i have paid £7,282 to my TD so far
Thanks
22/05/2011 10:10 pm
It will be interesting to hear what Mark, Kevin or Julie have to say about this BigEck, but I suspect that the final trust deed payments will need to be paid as expected.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
22/05/2011 10:14 pm
Thanks for your help 🙂
Was just interested really!
23/05/2011 8:41 am
Hi all
In the scenario described, the trustee would need to look at the net funds after the costs and expenses. If there's enough to pay creditors in full, then any balance remaining is returned. I think it would be extremely unlikely though that the creditor would agree a reduced claim with the Trustee.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
