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Scottish Trust Deed Forum
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Topic starter
05/12/2014 3:18 pm
I've paid off all my trust deed instalments around 18 months ago. My trust deed company has employed a third party to claim all ppi on my behalf to pay to my creditors as they consider ppi an asset. Problem is that I have a joint secured loan with my partner which was never included in the trust deed. The claim company want to claim ppi on this loan but my partner will not their documentation. The secured loan company actually repaid the ppi policy to him (a standard practice) but I never declared this as the cheque was in his name as first named on the policy. My trust deed company are now threatening to class this trust deed as a fail, therefore I'll have to pay everything back? I'm the only earner at home on £24k a year and a £100k mortgage, partner not on any benefits with a part time job and a zero hour contract.I guess the trust deed company can do this to me?
05/12/2014 3:36 pm
Hi Libra22 and welcome.
I guess the key question here is whether you should have declared and paid over your share of the refund that was sent to you.
If it's a refund related to a joint loan it certainly sounds as though this should probably have happened. The fact that the debt isn't a creditor in your trust deed isn't relevant - the potential to claim back the PPI is the relevant matter as that was an asset when you signed.
Should your trustee consider that you've failed to stick to the terms of your trust deed one possible outcome is that it's terminated without you being discharged from your debts.
Your trustee will need to make a balanced decision on how they deal with this. They have some discretion, so I'm afraid we cannot really say what they will or will not do.
If your trust deed were failed you would, once again, be able to review your options about how to deal with any residual debt that remains. I do appreciate however that this wouldn't be a very welcome prospect.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
05/12/2014 4:47 pm
Thanks for your advice. I'll get my partner to sign the papers and we'll take it from there. The irony is that at our first meeting with the trust deed company, (which was taken over by the one we're with now) we were told not to bother about declaring any money that we came into unless it was going to cover the whole debt!
05/12/2014 5:56 pm
Hi Libra22.
That's certainly a very strange and erroneous statement for anyone to make. Presumably the paperwork clearly said otherwise?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
07/12/2014 8:17 pm
How much PPI are we talking here, Libra22? You say your partner was the first-named on the policy and the cheque was paid to him - is it possible that the insurance policy only covered him, in which case it could be argued that none of the ppi refund was yours? Worth checking the policy maybe?
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