Mark Mcfadyen - Scottish Trust Deeds Interview

Date: Wednesday 23rd September 2009 Location: Offices of Philip Gill & Co, Glasgow Interviewee: Mark McFadyen

1. How would you describe your firm as it compares to others?

As a medium sized firm with offices in Aberdeen, Glasgow, Cardiff and Northern Ireland we’re very focussed on delivering a personal service. I personally handle all client meetings in Scotland from Perth downwards. My colleague Steve Crich handles client meetings North of Perth. Alll ongoing cases are administratively dealt with in Glasgow. I am available by telephone to all of our clients. We follow a tight process to ensure things are done properly and confirm our advice/process in writing so our clients know exactly where they stand before any documents are signed.

2. What geographical area do you cover?

We cover the whole of Scotland including the Highlands and Islands.

3. Who regulates you and how does it protect your clients?

We are regulated by the IPA (Insolvency Practitioners Association) and are subject to regular inspection and review. Our most recent inspection in March was handled by the IPA in conjunction with the Institute of Chartered Accountants of Scotland.

4. What actually happens when someone gets in touch with your firm?

Initially either myself or Steve will make contact by telephone. This provides an opportunity to establish the basic facts of the situation. We’ll then arrange a meeting at the client’s home or our office or wherever is convenient. This provides an opportunity for the client to ask as many questions as they wish so that they fully understand the commitments attached to a Trust Deed. We also run through all other solution options to provide a useful comparison. After this meeting we will confirm our advice and the terms of a potential Trust Deed in writing. If our client remains happy to proceed a meeting will then be organised at which the Trust Deed can be signed.

5. What are the main concerns of those who contact you?

How assets such as a home or car will be dealt with is clearly and rightly of concern to our clients. This is an area we’ll take time to discuss in depth and confirm our position in writing to the client, to ensure there is are no doubts. We also get asked what would happen in the event that our client lost their job, became unwell or even pass away. These are important questions that we’re pleased to take time to discuss. Clients naturally also want to know how we are paid for our services. Finally I’d say that there is often discussion about the connection between the overall level of debt and the amount that the client can afford to contribute to a Trust Deed each month. Many people are surprised to learn that the contribution is based on what is affordable and is not connected to the level of debt.

6. The language attached to Protected Trust Deeds can be very confusing. How do you go about ensuring that your clients understand the commitment they are making?

We try to create several levels at which we can provide information, answer questions and confirm understanding. Our first visit is a face to face opportunity to talk matters through. The written confirmation that we subsequently send includes clear explanations of any technical terms used. The signing meeting also provides an opportunity for any last minute concerns to be addressed prior to signature. Throughout this process we are available by phone to discuss any matter of interest of concern to a client.

7. How does your firm deal with assets/equity (especially home and car)?

The most important point is at the outset we clarify the position in writing. This means our client can be reassured that they know exactly where they stand.

We would instruct a full house valuation after the Trust Deed is signed and obtain a mortgage redemption figure. This creates a static equity figure that will not change during the Trust Deed.

If a car is on Hire Purchase and the payments continue beyond the end of the Trust Deed the car is not considered to be an asset. Car HP payments can continue in the Trust Deed provided they are reasonable. Where a car is owned it will be valued towards the end of the Trust Deed. If the valuation is £1000 or less no payment will be required. If the valuation is more than £1000 the difference will be payable. This could be accomplished with the introduction of third party funds or by making additional contributions at the end of the Trust Deed.

8. In your experience will entering a Protected Trust Deed affect someone professionally?
   
   Not normally. Professionals should consult with their regulators or professional bodies. Police officers and those in similar positions should speak with their Professional Standards and/or Welfare teams, although we have found there to be no issues whatsoever. Others may wish to check their contract of employment prior to proceeding.
   
   
9. Do you charge upfront fees? How are your fees worked out and paid for?

We do not charge upfront fees. Our fees are agreed with creditors and paid from the funds contributed by the client to the Trust Deed.

10. How often do you recommend solutions other than Protected Trust Deeds?

We would only recommend a Trust Deed if we felt it to be the best option for a client and accordingly recommend other options frequently. A Trust Deed should be treated as a last resort to deal with overwhelming debt; this is a subject I have regularly written about on the Trust-Deed.co.uk forum.

11. What percentage of the Trust Deeds you put forward become “protected”?

Around 99%. In the past twelve months we have had one failure. This was a business related Trust Deed where one creditor had the majority of the debt.

12. What happens after a Trust Deed becomes protected? What contact will people have with your firm?

We’re available to our clients should they ever wish to contact us. We proactively copy our clients on creditor correspondence. Every six months we contact our clients to review their circumstances (such as income and expenditure) with them.

13. How do you find being one of Trust-Deed.co.uk Recommended Experts?

It’s been a learning curve contributing to and reading the forum. The variation of interpretation as to how a Trust Deed should be run between different firms has amazed me. My biggest disappointment are the postings where firms have obviously advised one set of proposals and clearly changed these through the period of the Trust Deed. I think individuals should be safe in the knowledge that the information and advice at the start will remain throughout the Trust Deed. Much of the feedback I have read has been used to streamline our own operation so that we can continually improve the services we provide

Mark regrets that he cannot communicate directly with visitors about existing trust deeds being managed by other companies. If this applies to you, please ask your questions in our Trust Deed Forum where Mark and the other experts will do their best to help you.

If you would like Mark and his team to handle a Trust Deed for you please fill in the contact form below (or call the site advice team on the freephone number provided).

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