Hi NewGuy,

Welcome to the forum!

You're right, insofar as all options should be considered and clearly outlined to you. You would normally receive some sort of advice document confirming what has been discussed, what is recommended and why. Unfortunately, some firms can still be really guilty of pushing trust deeds for the wrong reasons. Perhaps others who have experience of your firm and trustee can share their perspectives, if you want to say who you're with.

The other personal bug-bear of mine is when debt amounts are small enough that full repayment would have been achievable over a reasonable time period. Can I ask about your debt level too?

it was £28k

@newguy I'd bet the majority of what you're paying is going towards the fees of the IP. You should look for your advice letter, and if you can't find one, ask your IP firm to provide a copy of it. They have a requirement to hold this on file, and provide it on request.

Hi NewGuy,

Not all Trust Deed providers are regulated by the FCA (this is not a requirement, as their Insolvency licence provides sufficient authority. This is only required if they also offer DAS). Any relevant complaints should, in the first instance, be raised with the IP's firm, then escalated via the Insolvency Complaints Gateway.

The Trustee should have ensured you were aware that the full amount of your disposable income is required over a four year period (whilst this means payments may go up, it also means that payments can come down if you have a reduction in disposable income for circumstances outwith your control). Before raising any complaints, check the engagement letter and other documents you signed at the time, as the information is potentially within those documents.

You mention DAS "would have been a better option". Can I ask if your Trust Deed is now likely to result in you paying more than the balance of your debts at the outset?

The IP should have ensured that you were made aware of all available options and the benefits / disadvantages of each. They may have a recording of the advice call, or notes from the time of advice. It is worth asking them to provide a copy, or review the recording, as part of a complaint.

Thanks,

Nick

Posted by: @newguy

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Hi,

On a trust deed, my salary has increased so now paying a lot more per month now.

 

I feel I was misled when signing up to the trust deed I was not made aware that this would be the case, that it would be 100% of my disposable income. No where in the paperwork does  it says this. 

As the trust deed company as to follow FCA regulations, it was there duty of trust/care that they inform me of this  "100% of my disposable income" would need to be paid, this was not made clear to me that, this would be the case.

 

They did not disclose this important information  it would have effected my decision to do the Trust Deed or not. so misleading me.

 

Looking at DAS it seems that would have been a better option for me. If my salary increases alot. They did not compare the scenario between DAS and Trust Deed for me to make choose that's best for me.

 

Was i Mis-sold??  What can I do now?

 

Surely they cant hide this information if they follow FCA regulations are customers must be informed of this. such a important bit of information. 

 

@paulp I'm pretty sure they did not mention on the call that 100% of my full disposable income will be required.

I dont see it on the paperwork also. Its says "The client only makes one affordable monthly payment, calculated after an allowance has been made for general living expenses and household expenses"

My Trust Deed is a few years old now. I did ask for recording of the phone call, but they said they did not have that any more. 

Even if it does say on the letter but was not explained to me via phone call would that be ground to say I was misold.

Due to my salary increase i could in theory clear the initial debt i had. If they take 100%.