Hi snowball

There is nothing to prevent you using paypal while you are in a Trust Deed.

Set off is an interesting point. Generally the bank could offset a credit balance during the 5 week protection period, however on protection they would require to return the funds as matters revert back to the date of appointment.

Hope this helps

Mark

Hello Mark.

I understand that a bank would have to return funds taken as "set-off" during a protected trust deed, but presumably this fact would not stop them from initially taking the money to set it off against the debt and leave the account holder temporarily without access to money?

We've seen plenty of examples on this forum where people continue to receive debt collection calls after a trust deed has become protected but before the creditor gets around to updating their files that a trust deed is in place.

With this being the case I would have thought money might easily be taken when it should not be for the same reason?

I'm sure that a Trustee would help their client to see that the money is repaid to the account holder reasonably soon, but the intervening period where the money isn't accessible could create massive difficulties including not being able to make the trust deed payment for example.

I'm not very familiar with the Paypal prepaid credit card Snowball. Presumably you could use any prepaid card to fund a Paypal account though? If so I'd be sure to get a card unconnected to any of your existing creditors.

That's correct, trust deed assistant - the temporary problem it creates can be very difficult and is the reason why we always advise people that it is safer to start using a new bank account as soon as possible to avoid the risk of set-off.

quote:

---

we always advise people that it is safer to start using a new bank account as soon as possible to avoid the risk of set-off.

---

As someone who has just signed his TD (well, 2 weeks ago) I'd recommend that the first thing people do is get moving on setting up their new bank account, changing DDs, getting debits cards etc. Apart from anything else, doing so gives you back that wonderful feeling of control that's been whittled away as you've tried to deal with your debt.

Sure, it takes a bit of effort to do but it's vital to get your financial life back on track now that you've taken care of the debt side of it. You've still got your bills to pay so you need to get moving to make sure that happens on time for each of them.

As for the offset, I'm happy for my (ex) bank to offset what remains of my overdraft against my credit card. Sorry, couldn't resist.

Cheers,

DebtFreeWannabee

Since we're talking about potential problems with the PayPal card, I also wanted to add that I've found CashPlus to be an excellent provider of pre-paid Mastercards.

Guaranteed acceptance, multiple cards on one account, no worries about setting off and their online system gives you more control over it than you could every wish for including a detailed list of every transaction, including ones you made moments before.

Topping up can be done online or in any post office, which is the way I've done it, and the money's on the card the next day. They even text you when it's available on the card.

Links are not allowed here so Google it for information.

Cheers,

DebtFreeWannabee

Thanks for your replies folks. Maybe I phrased my question badly but my concern was that funds in my Paypal account or similar arrangements where a transaction service is operated by a bank, might be at risk of setting off. I have recently sold a few items, after disclosing this to my trustees' agent, on eBay and this has generated some modest funds which naturally I would like to hold on to.
I agree with DebtFreeWannabee's comment about moving your bank account and Direct Debits. I'm about three weeks in myself, since signing up and I found this very difficult to do. I think because it's the first commitment to quite a drastic course of action. Up until then it's all just talk. Once this was done though I felt I was on my way. Opening a bank account very early on is good advice and doesn't commit you to anything. You need to check which banks are affiliated and make sure they don't pick up your standing orders and Direct Debits until you're ready.

Hello Snowball.

I have never heard of any offset issues connected to a Paypal account in connection to any kind of debt solution. Someone else may administer the account, but I don't think anyone external would have any entitlement to offset against matters connected to a separate financial institution.

I agree with TDA.

Banks (notably RBS) offer (ie sell) access to their infrastructure to 3rd parties who want to offer their own banking services. PayPal would seem to fall into this category. thinkBanking definitely does.

But that doesn't in any way mean that RBS can simply dip into your funds whenever they choose for their own ends.

In fact, in the case of thinkBanking, I went through it with their rep just to be sure.

Cheers,

DebtFreeWannabee

Thanks for that. I'm sure you're right. It's probably a bit of paranoia creeping in.