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Can creditors still contact me once I sign a Scottish Trust Deed?

1st February 2011

One of the main reasons that people sign a Scottish trust deed is due to the increasing level of frustration they feel at the constant contact from overzealous creditors. This contact tends to take the form of threatening letters, annoying text messages and repeated phone calls from debt collectors.

Once a trust deed has become ‘protected’, which usually happens five weeks after the paperwork has been signed; the debtor can no longer be subjected to legal recovery actions from their creditors. The creditors should contact the trustee instead.

Creditors accept the majority of trust deeds, which makes it even more unexpected if they continue to receive calls from debt collectors. This happens most frequently in the period running-up to the time when the trust deed becomes protected.

One of the reasons for this is that creditors generally use agents to review trust deed proposals sent to them regarding their account holders. The agent may be well-aware of the trust deed, but often this information is not passed back to debt collection departments, or the lenders are slow to update such information to their systems.

While debt collection calls and letters received during this period may be annoying, they are not necessarily anything to be worried about. Letters can be passed to the trust deed provider, and callers can be advised of the existence of the trust deed and asked to contact the trust deed provider instead.

Should contact continue after this has been completed, a Trustee should be prepared to fax the creditor concerned demanding a cessation of such activity. Ultimately, the debtor may even consider a formal complaint to the creditor should debt collection cross the line into harassment. Remember that the original lender is responsible for the conduct of any debt collection agency it appoints.

Once a trust deed becomes protected, phone contact should cease altogether. Any callers should be referred to the trustee. The Register of Insolvencies is an invaluable resource which confirms the status of Scottish protected trust deeds. It is not acceptable to make any payment to any of these creditors at this stage. Letters should be sent direct to the trustee to deal with.

Most people who sign trust deeds find that this type of creditor contact stops quickly. Where it does not, there are steps that can be taken which should (with a little time and patience) bring it to an end.

For further advice from a trusted source, please scan the headings of articles on our Trust Deed Advice Forum and read those which you feel apply to you. You can also chat to other people who have been through, or are in the process of going through similar financial difficulties.

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