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Scottish Trust Deed Forum
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Topic starter
24/03/2011 9:45 pm
I am almost finished my trust deed (yaaayy!!!) and as we have a 14 month old, and no savings, I thought my fiance should join the credit union. I used to be in it myself, but had to include it in my trust deed, so my account was frozen, which I understood. I never wanted to include the account in my trust deed, but I was told that it must be in order for my deed to be accepted and protected.
A couple of months ago, my fiance went up to the credit union, and asked to apply. She was told she wouldn't be allowed to, as I had the trust deed and my account was in arrears. She was mortified, and I'm not even sure how they knew she was linked to me in the first place, as I met her after I entered my trust deed.
I went up to talk to them about it, after some phone discussions with them and my trustee, as at first they said they didn't know I was in a trust deed and just thought I was defaulting on them. Then they checked their records, and they have indeed submitted a claim to my trustee. When I had a sit-down, they told me that although they knew about the deed and had claimed against it, neither I nor my fiance would be allowed to join until my entire debt was cleared, even just making payments of £10 a month or something.
At first I said ok, but haven't set up the standing order yet as it still bothers me. Are they allowed to do this? I thought all my debt would be written off after the 3 years, but this I will still have to pay off in full. Also, are they allowed to stop my fiance joining? She has had no prior dealings with them until this. We wanted to join to have a reserve fund and availablity to low-finance loans in case of emergencies, especially with baby #2 on the way.
Also, the guy I talked to had said that some folk with trust deeds had not included them, and still made payments to their loans, etc. He even said one of them was an accountant, who I would have thought would know better.
24/03/2011 10:40 pm
Hi Kamikaze Bob.
It seems odd that the credit union would refuse your fiance on this basis. Very odd. However, I guess they have the right to choose their own members/clients.
You don't need to repay them. Your trust deed ensures that you will not owe them anything.
I'd have thought that it will be better to find a savings account elsewhere, and go about rebuilding your credit record to restore credit access again in the future. I'd also imagine you could build up a savings safety net fairly quickly once you can divert your trust deed payments towards it?
Some people may have left the credit union out of their trust deeds. But they shouldn't have.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
24/03/2011 11:19 pm
hi there.
do you have to declare a credit union account even if there is no debt and account is totally clear?
l girvan
25/03/2011 6:54 am
Hi all
As TDA says, the Trust Deed includes all debts and there is certainly no need to repay the credit union.
There is also no need to include them if there is no debt.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
25/03/2011 1:47 pm
Thanks guys.
I really like the credit union when I was using it. Loans were no hassle, and I loved that if I paid a little extra when I could, the loan was paid off quicker and cheaper. I bought 2 cars and all new bedroom furniture with their loans, and wanted to have the peace of mind that we could again.
As for the backup fund, the £230 I pay just now to the deed will be used to help run the house for a few months, as we have another baby due in October, so we'll need the money until my fiance goes back to work.
25/03/2011 2:07 pm
I can see that it must be very frustrating Kamikaze Bob. Hopefully you'll be able to find an alternative in time that will give you that peace of mind.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
25/03/2011 2:31 pm
Thanks TDA, but the more I think about it, the more it's actually pissing me off. She lives where I live, where I opened the account originally (not same house, but same village, actually slightly closer to branch than parents house), so there's no reason not to exclude her because of me. Also, I'm pretty sure this action falls foul of the FSA, as credit unions are regulated now.
Am in two minds whether or not to pursue it, will do a bit of digging into the rules first I think.
Topic starter
18/05/2011 9:46 am
quote:
Originally posted by Kevin Mapstone
Your creditors are legally bound to write off the remaining debt after your trustee has paid their final dividend. The only way they can avoid this would be by petitioning the court and arguing that they shouldn't have to do this.
Stolen this quote from another topic, but I was wondering if someone could point me towards some legal mumbo jumbo I could use in a letter in a few months time, just in case I encounter any problems. Planning on sending something to the Credit Union anyway, given up on trying to pursue it, as apparently they can make up their own rules of who can join, etc, even ignoring their constitution to suit their own agendas.
18/05/2011 10:04 am
Hi Kamikaze Bob
Have a read of Section 19 of the The Protected Trust Deeds (Scotland) Regulations 2008 on the Accountant in Bankruptcy's website (under Guidance - Legislation)
You will also receive a Form 5 (Letter of discharge of debtor) from your Trustee.
Julie
Julie is not currently posting in the Trust-Deed.co.uk forum.
