I have 7 months to run on my Protected Trust Deed and have just received a letter from my Trustee saying that they have revalued my car and because the value has fallen they are extending my TD by 3 months - 2 at the full monthly payment and one at a reduced amount. Can they do this? They've sent me a form stating I agree to this which they want me to sign and return to them...I'm afraid not to sign it but cant understand why I should. Can anyone help advise me on this.
If your car is worth more than a certain sum (used to be £1000, now £3000, depends on when you signed) it is an asset that the trust deed provider must deal with.
Often this is through a couple of extra contributions rather than anything more serious (like a forced sale for example).
I'd call your trustee and ask them to confirm the basis of their request, but on the surface of it, it doesn't sound abnormal.
*** Qualified Debt Adviser & Trust Deed Forum Administrator ***
my car was only valued at about £1200 back in Feb 2010. They are now saying it is only worth about £800. Why if I have less would I be asked to pay more....sorry but its not making sense to me.
You're not being asked to pay because the car is worth less, you're being asked to pay because your trustee believes the car is or was an asset that they must realise for the benefit of your creditors. Maybe the wording used should have made this clearer.
Can I suggest you check in with your trust deed firm and ask them to tell you the basis of their calculation? Let us know what they say and we can confirm that all seems normal and fair, or whether you have grounds to object.
*** Qualified Debt Adviser & Trust Deed Forum Administrator ***
I will do...im struggling to make ends meet as it is...the thought of another 3 months is a nightmare. Since taking the TD, my son has finished college and moved out so I've already lost about £120 income per month from tax credits and child benefit....i had thought i just stick to my payments and after 36 i would be free and clear....this is a blow i could do without. Many thanks for your help
Please let us know how you get on and if we can help any more.
Another suggestion for readers considering starting a trust deed; get written confirmation before you sign as to how your assets (like your home or car) will be dealt with. That way you choose to go ahead (or not) on an informed basis which will go a long way towards avoiding unwelcome surprises like this.
Most firms will be happy to do this (if they're not find someone else!). Also, don't rely on promises made by intermediaries that later pass you to a trust deed firm. Double check everything with the new firm and get it in writing before you sign.
*** Qualified Debt Adviser & Trust Deed Forum Administrator ***
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extending a trust deed
Posted - 11 July 2012 : 20:16:15
