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silly
Frequent Contributor

33 Posts

Posted - 10 February 2018 :  14:12:10  Show Profile  Reply with Quote
Hi, I have been notified of quite a large PPI payment that is being paid directly to my td, which is fine and I accept that, however, with that and the payments I have made to date I will now have paid approx 1/3 of my total debt, can I expect my term to be reduced?

TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 10 February 2018 :  17:26:35  Show Profile  Reply with Quote
I’m afraid not silly.

It will run the full term unless you reach a point where your debts have been fully repaid, interest in the debts has been paid, plus your trustee’s fees have been paid.

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silly
Frequent Contributor

33 Posts

Posted - 10 February 2018 :  17:32:15  Show Profile  Reply with Quote
Thanks TDA. Seems a bit unfair given if I wasnt in a td the PPI would have paid off at least 2 of the debts and I could have managed the others but hey ho. And isnt it ironic the organisations you owe are actually paying your debt for you with such silly PPI payments!!
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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 12 February 2018 :  12:19:37  Show Profile  Reply with Quote
I don't suppose that there's much doubt that some people have entered trust deeds (and other types of debt solution) in significant part because of excessive and/or unfair PPI payments in the past.

That does seem really unfair and there's no obvious way to put it right.


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Rob8
New Member

6 Posts

Posted - 14 February 2018 :  23:30:00  Show Profile  Reply with Quote
If a third has been paid off including a PPI payment, should the monthly payment be reduced since a figure to be paid back was agreed on signing up?
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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 15 February 2018 :  08:56:25  Show Profile  Reply with Quote
Hi Rob8.

It won't be reduced.

The figure at the start is effectively an estimate.

In reality things tend to change, so the actual total payment eventually made might be more or less.

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silly
Frequent Contributor

33 Posts

Posted - 21 February 2018 :  19:02:34  Show Profile  Reply with Quote
That's interesting TDA because as far as I was aware what I signed states what my monthly payments are and for how long thus in my simple mind this is a legal document so should not be able to be altered. Certainly I was never advised my payments could change or this was an estimate.
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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 21 February 2018 :  19:34:11  Show Profile  Reply with Quote
Hi silly.

Obviously I can’t speak for what you were advised. People entering a trust deed should be made aware that their payment can change because it’s based upon affordability which will itself tend to change over time.

If you’re interpreting your trust deed documentation in a different way I fear that this would be a misunderstanding.

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Edited by - TDA (Debt Adviser) on 21 February 2018 22:00:37
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silly
Frequent Contributor

33 Posts

Posted - 21 February 2018 :  19:54:41  Show Profile  Reply with Quote
Thanks. I will re-read paperwork to double check although I know I was never verbally advised. Also, 2 year prior to any debt and TD I had transferred a property for 1/3 of its value - with perfectly good legal reason for doing so - yet this was taken into account when entering TD and my term was extended. It doesn't seem right I am paying for this transaction due to the change in my circumstances?
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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 21 February 2018 :  19:57:41  Show Profile  Reply with Quote
Hi silly.

Were you paid fair value for the asset you transferred?

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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 21 February 2018 :  20:00:27  Show Profile  Reply with Quote
I’ve misunderstood your post in my last post silly.

Will reply again shortly.

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Edited by - TDA (Debt Adviser) on 21 February 2018 20:01:20
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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 21 February 2018 :  20:21:03  Show Profile  Reply with Quote
Hi silly.

Sorry, had to go and do something quickly. I initially read that you’d transferred 1/3 of the property then realised after you’d said it was at 1/3 of the value.

Who was it transferred to?

What was the reason for the transfer?

Were you in debt at the time of the transfer?

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Edited by - TDA (Debt Adviser) on 21 February 2018 20:21:31
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silly
Frequent Contributor

33 Posts

Posted - 21 February 2018 :  20:30:08  Show Profile  Reply with Quote
Hi, it was transferred to a family member who, morally, not legally, (long complicated story) was entitled to it at that value - morally was the right thing to do due to historical inheritance process/story. I was not in debt at the time so I obviously feel my term being extended is rather unfair
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TDA (Debt Adviser)
Trust Deed Expert



12364 Posts

Posted - 21 February 2018 :  20:45:42  Show Profile  Reply with Quote
Have a read of this old thread about ‘gratuitous alienations’ silly.

Possibly not strictly applicable in this instance, but may help to explain your trustee’s thinking:

https://www.trust-deed.co.uk/forum/topic.asp?topic_id=2264

I think your trustee may consider that, morally, your creditors might never have stood to lose money if you hadn’t transferred an asset below its true value fairly recently beforehand.

They’ve proposed to you that this would be acknowledged by a term extension. You, voluntarily, have chosen to accept their proposal (as did your creditors).

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silly
Frequent Contributor

33 Posts

Posted - 21 February 2018 :  20:50:05  Show Profile  Reply with Quote
Thank you. I will have a look at it
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silly
Frequent Contributor

33 Posts

Posted - 25 February 2018 :  21:08:32  Show Profile  Reply with Quote
Hi, haven't read article yet however I have gone through paperwork which states payment proposed at outset is what has to be maintained throughout so surely it can't change?
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