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Scottish Trust Deed Forum
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Topic starter
20/08/2016 8:20 pm
Hi
I would appreciate any thoughts on this scenario:
My husband took out a trust deed in April 2012.
For the first year he accidentally overestimated his income, resulting in a high monthly repayment. Unsurprisingly, he missed several payments that year.
When he submitted correct income information for the second year, his contribution was dramatically reduced to a much more manageable amount and he did not miss payments.
Without any communication, the trust deed firm extended the term of the trust deed to take account of the missed payments. Unfortunately, the missed payments date from the period where he was paying the higher amount, so the outstanding amount is considerable and it will take some years to repay at the current rate.
We were recently sent a copy of a letter to the creditors from the TD firm which stated that they hadn't recovered as much as originally expected so it wasn't worth their while chasing the debtor for the outstanding amount! This sounds a bit fishy to me - does that mean that the TD firm are just keeping all my husband's current and future contributions for themselves? Are they allowed to do that?
There seems to be no literature avaialable on the web with information on the rules governing the conduct of TD firms so it is really difficult to know how to judge their behaviour.
My other question - does the extension affect the date at which the trust deed leaves his credit report? That should be April 2018 as far as I understand, but he will still be in the trust deed at that point.
Thanks in advance for any info and I hope any discussion can also be of use to other people out there in a similar position.
20/08/2016 8:26 pm
that a good question mite be worth tweeting @askjames he a credit expert from experian
20/08/2016 10:57 pm
Welcome to the forum jendavjoint.
Your husband's trustee needs to take account of the interests of his creditors.
They agreed to the trust deed based upon your husband's initial proposals. As such, an extension of some type doesn't seem unreasonable in the circumstances you describe.
A trust deed, like any other credit file entry, stays there for six years only.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
22/08/2016 2:01 pm
I am sure the Trust Deed firm aren't misleading the creditors in order to keep the funds to themselves if that's what you are meaning, jendavjoint. They have a legal obligation to gather in and distribute whatever is available to creditors.
I'm guessing but maybe they are just being cautious in their report to creditors in case the funds cannot be gathered in after all.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
22/08/2016 11:36 pm
Thanks for the responses which do make a lot of sense. However, I think I could have phrased my post better as this part is ambiguous:
"We were recently sent a copy of a letter to the creditors from the TD firm which stated that they hadn't recovered as much as originally expected so it wasn't worth their while chasing the debtor for the outstanding amount!"
What I meant was that the trustee hadn't recovered as much as originally expected so it wasn't worth their while (their being the trustee)chasing my husband for the outstanding amount. However, they are doing just that as I described above, and that is why I questioned whether the trustee was acting lawfully.
23/08/2016 9:16 am
Hi jendavjoint.
Your husband's trustee will need to account for every penny that your husband pays into his trust deed to:
1 - Your husband
2 - Your husband's creditors
3 - The trustee's regulator (potentially)
If you're concerned about the wording of this letter and want clarity I'd suggest that your husband contacts his trustee to enquire about it.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
