I have been released from a trust deed(iva) and was recently told to put a claim in for the PPI I had paid on my bank loan up to the point of the iva. I went with Gladstone Brookes for this and they have won me just over £8000, they then have their charges which is around £2500 so I will get about £5000. The bank on the other hand state in their offer letter that when I went into the iva I owed them £8000 so they are offsetting this. Can they legaly do that? The only reason I had to do my iva was because they would no help me after loosing my biggest client, I am a self employed bookkeeper and the loan had been taken in 2003 to help me while I set up becoming self employed so should never have had PPI on it anyway.
I'm not sure about Trust deeds to be honest and whether there are any slight differences to an IVA, has everything been fully completed and signed off with the TD? I understand with an IVA once you get your completion certificate then that's it, so legally the debt has gone and they shouldn't be able to then turn around and offset money like this. Maybe one of our experts can give you some sound advice
I'm not sure about Trust Deeds either - hopefully Plasticdaft can pick up on this one as he is just about to finish.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks guys, as far as I am aware a Trust Deed is no different to an IVA,I live in Scotland and I think its is just what it is called here. I have now been released from my Trust Deed, after paying the alloted amount for 3 years with no defaults. I didnt even know I could claim PPI and the Trust never asked me to sign anything for it either. It was a friend who advised me to look into it. Gladstone Brookes also never mentioned the banks offsetting only that I was still able to claim even tho I had been in a trust deed. I am going to call them on Monday as I cant believe they are expecting me to pay fees of £2500 when I am only going to receive about £100. I got the letter yesterday so just thought I would do a bit of investigating myself. I am really greateful for any help anyone can give. Sam x
If you have been released from your Trust Deed (do you get a letter of completion as you do with an IVA?) then I think if you do go after PPI then anything you get will be yours as all debts will have been settled.
If you do want to claim, you can do it yourself without paying a firm extortionate fees.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Kallis, Yeah I have had my release letter from the Trust Deed and had already started my claim using Gladstone Brookes for the PPI. I had no idea that I could claim and to be honest felt a bit cheeky after being in the Trust Deed. Still the only claim I was making was from the bank who through their actions forced me into the Trust Deed as they would not help me when I had issues with my business. I have found it hard to get back on my feet since the Trust Deed but have coped. The bank should have never added PPI to the loan I had as the loan was given to me to help me be able to go self employed. All I am tring to claim is the amount of PPI I paid up to the point I went into the Trust Deed. Sam x
Thanks Kazza, I think so to. I just hope that Gladstone Brookes dont expect me to pay £2500 worth of fees if the bank are allowed to do this. My payout would only be about £100. If I have to pay those fees I will be back in debt again, something I have been able to avoid since starting the Trust Deed. I have lived within my means and have gone without to avoid financial problems. Sam xx
You could check with the CAB to see if they think so to. Or make sure Gladstone Brookes fight to get the money paid to you - they will if they think they won't get anything otherwise (I believe they are one of the best firms to use for PPI claims).
I will do hunni. I only got the letter yesterday so have to wait to speak to Gladstone tomorrow. Just thought I would see if anyone else had had ther same issue. This is a fab site and will keep you posted on how I get on as hey its always good to pass on info if you have it. Thanks Kazza. Sam xxx
I think (but don't quote me) that they would take their fees prior to any payout anyway, but it doesn't seem right at all that they could do this if you have completed your trust deed, did you start the process prior to it ending? maybe that has a bearing on things?
Hi Lem, I didnt start the claim until a while after I had been released from the Trust Deed. Like I said before I didnt think I could claim. I will have to wait to speak to Gladstone and see what they have to say about it. I am worried as did wander if this was a good idea what with karma and all that. When I had to do the trust deed I was mortified, I hated that I had to do it and couldnt sort it on my own with the help of my creditors but they were no help what so ever. I will keep you all posted. Sam xx
Trust Deeds are actually quite different to IVAs and should not be confused with them. The PPI claim was an asset in the Trust Deed, as the right to the money arose when the policy was sold to you and not when the claim was agreed to be paid. If the bank have the right to set off the amount under their contractual documentation, then I doubt you will see any of the money - and if it is paid over to you eventually, it strictly speaking should have gone to creditors. It may be worth contacting the former Trustee to see if they want to stake any claim to the funds - in which case they shoujld negotiate directly with the bank.
Sorry I missed this. If you have been discharged by your trustee then ppi reclaimed after this is yours. The bank will have claimed and received a dividend and whatever was left outstanding is written off!
Threaten the bank that you will take legal action. They will back down as you have done nothing wrong!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
