Trust deeds and recovery of PPI monies.

Davey1961

I don't know if anyone has any experience of this but I would love some advise. I had a trust deed which I signed up to whilst in Scotland in 2006. This I completed, all payments to time and schedule and was signed off from any insolvencies in 2010.
A few months ago Royal bank of Scotland wrote to me about a couple of PPI's I had taken out and agreed they had been mis sold and I was owed several thousand pounds. Obviously I was very happy about this until after many weeks of chasing the cheque I was told that RBS had taken the money for debt owed which had been consolidated in my Trust Deed.
Are they able to do this?
Dave

[Deleted User]

Davey1961 wrote: »

after many weeks of chasing the cheque I was told that RBS had taken the money for debt owed which had been consolidated in my Trust Deed.
Are they able to do this?

Of course they can.
You owed the Bank money which they wrote off as part of your Trust Deed. The Deed is meant to draw a line under your past financial mismanagement and allow you a fresh start. However, by returning the complaint form they sent you, you have effectively re-opened the debt you owe them. You were under no compulsion to return the form and you really should have realised that the Bank would not just casually "re-pay" you money you never paid in the first place.

Here's a link explaining the rules of setting off;
http://www.moneysavingexpert.com/banking/setting-off

dunstonh

Are they able to do this?

yes.

Think about it logically for a moment. You failed to pay your debts and left your creditors with money owing. So, it would not be logical for you to now get a windfall whilst creditors are left unpaid.