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trust deed P.P.I claim

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(@iainvr4)
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Joined: 12 years ago
Posts: 10
Topic starter  

Hi

I recently took out a trust deed which as far as I am aware is now protected.

I am how ever a bit concerned on the lack of communication, the trust deed been extended by 6 months, the request to make payments before protection and the only correspondence from the company being that they were claiming on P.P.I on my behalf.

Unfortunately my situation is very bleak and there is not many routes out but can some of these companies be praying on folk i this situation?

Thanks


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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Joined: 16 years ago
Posts: 13594
 

Welcome to the trust deed forum iainvr4.

What reason was given to you for the six month extension?

Some insolvency practitioners do suggest commencing with the payments once you've signed the trust deed rather than when it becomes protected. The effect of this can be to finish the trust deed sooner.

All trust deed providers will seek to reclaim PPI to help return more of what is owed to the creditors. Their regulators expect them to do this.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@iainvr4)
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Topic starter  

They just said it was due to change in legislation

Thanks


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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On what date did you sign the trust deed iainvr4?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@iainvr4)
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Topic starter  

About the start of October can't remember exact date. The companies name pops up on here a few times and most of the queries are roughly the same.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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The legislation changed on November 28th 2013. The minimum term for a trust deed had been three years, it became four years. The change applies as per the date a trust deed is signed.

There have always been trust deeds that run longer than the minimum term however.

Presumably any extension was proposed and agreed before you signed the trust deed iainvr4?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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Mark McFadyen
(@mark-mcfadyen)
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Hi iainvr4

It's certainly a strange one, particularly if they are stating that it was due to a change in legislation. If you signed the Trust Deed in October, then the 2008 rules will apply and not those of the 2013 changes.

I think it may be best to contact the firm and find out exactly what the reasons are for any extension.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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(@iainvr4)
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Joined: 12 years ago
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Topic starter  

Hi it was agreed at the time but the first time they came out they said it would be 36 months then when the final paperwork was to get signed that's when they told me it would be longer.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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Joined: 16 years ago
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Hi iainvr4.

Most often when this subject has come up here before it comes down to one of two reasons (or a combination of both):

1 - An extension to the term is required for there to be enough money available to creditors for them to accept the trust deed.

2 - The company is charging an above average level of fees meaning that the term needs to be extended to fund them.

I'm afraid if you agreed and signed to proceed on the basis of a longer trust deed there's probably not going to be much you can do about it now.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@iainvr4)
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Posts: 10
Topic starter  

Yeah I understand that it was more the question regarding the P.P.I and the lack of communication. Just another question can a 3rd party settle your trust deed for you?


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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Joined: 16 years ago
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With the agreement of your trustee they can iainvr4.

Not every trustee is prepared to do so without the debts being fully repaid (plus trust deed fees and possibly interest).

In the later stages of trust deeds they may be more open to someone paying over the remaining contributions that will be due.

It's looked at on a case-by-case basis, and the trustee has discretion, so it cannot be seen as an option that people can feel entitled to use.

It can and does happen though.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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David Tannock
(@david-tannock)
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Hi iainvr4,

I'm sorry to hear about the uncertainty your having regarding your Trust Deed and the increase in the timescale.

I've heard that happening more regularly now and it's by one firm in particular where the ÔÇ£agentÔÇØ tells the client that it will be for a set timescale and then when the paperwork comes out from the company it's changed. I think people are so far down the line already that they just proceed with it anyway.

I realise that it's not going to help your situation at the moment but for anyone else who perhaps is considering a Trust Deed, you want to make sure that the advisor you speak with is employed by the firm that you will sign your Trust Deed with and it's them who will deal with your case and be your point of contact throughout the whole process. Often the advisor who you may meet with is just an ÔÇ£agentÔÇØ who is there to sell you the Trust Deed. If they have then made a mistake and not told you something it's very difficult to go back as the person isn't employed by the firm.

In terms of communication, once you sign the Trust Deed and its proposed to your creditors and accepted things should run smoothly and without very much communication from your Trustee unless there is a problem so I wouldn't worry too much about that. I always tell my clients no news is good news.

Normally your payment would start prior to the protection as this will enable your Trust Deed to run as close to the estimated timescale as possible and there are ÔÇ£behind the scenesÔÇØ costs which your Trustee will pay up front and then recover during the period. This would include the cost of advertising you case in the Edinburgh Gazette.

Give your Trustee and call and as Mark said ask them to confirm exactly the reason for the extension in timescale.

David is not currently posting in the Trust-Deed.co.uk forum


   
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(@iainvr4)
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Joined: 12 years ago
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Topic starter  

Ok thanks very much for the answers folks


   
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