Post Protected Trust Deed

JABBER88

Hi

I signed a Scottish Trust deed in Sep 2006. I was finally discharged from this obligation in May 2010. I have now gone about tidying up my credit files with respect to this (it amazes me how all 3 firms can hold different information about the same accounts).

The trustee paid the assigned creditors the monies due(beware...when I initially signed in to this deed I was paying £900 monthly by the end this had risen to £1250 monthly!). When I intially signed all my unsecured debt was taken into the deed, including my joint bank account overdraft. This company also has my present mortgage. My spouse did not enter the deed. This company were paid £1005 from the proceeds of the deed at the end, this left a balance outstanding of £1990 on the account.

I have a few questions with regards this.

They have filed the account as being in default(the only company that got the date right on the credit files as the date I signed the deed.) They have however defaulted both mine and my spouses credit files.

Can they still pursue my other half for the outstanding debt even though all has been quite since Sep 2006?

I am reluctant to approach them to amend my file because of this(they have not settled this on the file).

Do I approach them to try and get an agreement for the return of the outstanding debt? (Looking at past experiences on here it looks like they would off load this to a debt collection firm and double this outstanding amount)

Will the files that have defaulted on the credit file fall off the file from the date of the first default even if they don't show as settled or partially settled?

Regards Rob

laineydoll126

Hi Rob,

as the overdraft on the account was held in joint names it meant that despite you signing the trust deed the full liability of the debt less the contributions received from the trust deed would be the responsibility of your partner.

If you have taken out a credit agreement, loan or have a bank account in joint names, then you are both liable for the full amount of any debt. This means if one of you fails to repay the debt then the lender can still ask you for the full amount (not just half)

The lender cannot recover the money twice but can pursue both of you, or just one of you, for all amounts still outstanding until full payment has been recovered.

In your spouses case they would only be entitled to recover the balance that was remaining once your contributions had been deducted.

If they have not made any contact with your husband about the debt and 5 years or more have lapsed then the debt is perceived as "prescribed" and they cannot undertake any further action to recoup this.

You can approach the credit reference agencies and ask for a note of correction to be added advising that the debt that is reflecting as defaulted was subject to and included in a trust deed which has now been completed and satisfied and that the information showing this is inaccurate. This will present the opportunity for any future lenders to take this inaccurate information and consider you for credit before reaching a decision based on the accurate facts.

I hope that this is helpful to you.

Elaine

JABBER88

Hi Thanks for your advise.

The issue I have then is whether to contact the firm and arrange repayment or whether to sit until the post 5 year mark.

I didn't realise they could still pursue me, as I had already partially settled via the trust deed and certainly the DMP I was with at the time wouldn't let me overpay into to the overdraft whilst I was still in the deed.

Regards Rob

AlyBaly

Rob as you know we are in a similar situation. Original OD in joint names £2700 , was included in hubbys Protected TD but I was pursued and taken to court for full amount.

I am currently paying this off at £70 a month so by the time the TD has completed (July 2012) I will have paid more than the original amount plus they will get something out the TD but not sure what.

I personally will just be glad to get it all paid off and sort out any refund due after TD is discharged.

Sorry not really much help in your decision but know exactly where your coming from

JABBER88

I know exactly what you mean.

Once I have all these credit lending banks off my books will be a great day worth celebrating!

Regards Rob