I have been in a trust deed for the last 3 years, the trust deed was to continue until September 2013, however I received an update letter on my 36th (may 13) month advising of the intention to extend my trust deed to pay off the amount of my car and 1 weeks arrears on my TD, A family member then agreed to help me and pay off the outstanding payments until september and pay off the 1 weeks arrears and the amount of my car, totaling approximately £2000.00, I had called my TD company and they had advised that the trustee was willing to accept the payment and end the trust deed early, the payment was made in beginning of June and advised it would be processed in the beginning of JUly and my TD would be passed to the closure team and then in July they tried to take another DD from my account, I called them and asked why they were taking another DD when my family member had paid it off, they agreed it had been a mistake, and that I should phone the bank and ask them not to pay it, I did this and this was ok. I then received a letter at the end of July asking me to send details of my life insurance policy, I did this, and have since received a letter from them advising me that they are looking to surrender my policy.
I have an illness and I have had this life insurance and critical illness insurance since I was 19years old, the illness I have has now became a more recognised illness and if I am forced to surrender this policy, I will not get life insurance or critical illness to cover me if anything should happen with my illness. I had sent a letter to my TD company advising them of this and they have advised me I should re-instate my DD and start payments again, or go and get a loan, or get a family member to pay the amount of the policy so I can keep it.
Surely they should have asked for this before they accepted the final payment from my family member, and should not have agreed to end TD early if they did not have all the paperwork?
Where do I stand here?, my family can't afford to pay the amount they are requesting, and I am not going to get a loan to get more debt, and I do not see why I should then have to extend my TD when they have agreed to close it early.
I was also advised that they are looking to start up my DD just now while they are awaiting my answer about the policy, if it should come that the policy has t be surrendered why should I need pay DD just now they will get all of the money when the TD is surrendered.
Can they now do this after they have agreed to close the TD early?