Troubling Trust Deed - Potential Scandal?

LesDee

 My case highlights what I believe to be a systemic problem in how Trust Deeds are being sold, administered, and overseen, which risks leaving vulnerable people trapped, exploited, and paying more than they ever owed in the first place.

When I entered the Trust Deed, I was put under significant pressure by the referring company, who suggested there were “always ways to lose income” to make myself eligible. This was not only irresponsible but exploitative, as they were fully aware of my redundancy situation and changing financial circumstances.

Further, my Trustee accepted the agreement without a witness signature, despite this being an explicit legal requirement outlined in the contract. This casts doubt on the validity of the entire Trust Deed, and shows a disturbing lack of duty of care.

Since then, I have been subjected to coercive tactics by my Trustee, who has pressed me to increase my payments far beyond what was originally agreed. I am now paying back more than my original debt, in a process that appears to prioritise Trustee fees over creditor fairness or debtor protection.

I hold evidence that shows this is not just poor administration but clear misconduct:

A phone recording in which I state that I felt harassed by the Trustee into signing.

A WhatsApp transcript with the referring company which shows they knew I was being made redundant, then starting a new job with higher pay, yet refused to review my situation and instead told me to hide income to continue with the Trust Deed.

I have reported these issues to the Accountant in Bankruptcy (AIB), ICAS, and the Insolvency Practitioner themselves. Yet none of these bodies are communicating with each other. They hide behind emails, take weeks to respond, and avoid phoning me. I have escalated my concerns internally with each of them, but I am still left facing silence, delays, and a total lack of accountability.

My situation demonstrates the wider scandal:

Referring companies are giving reckless advice to push people into Trust Deeds.

Trustees are ignoring legal safeguards like witness signatures.

Oversight bodies are failing to protect consumers and leaving people to fight alone.

Debtors are ending up paying back more than their original debt, despite being told these schemes were designed to help.

This is not just about me — I fear there are many others in Scotland being misled, coerced, and trapped in similar circumstances, with no effective regulation or protection.

MyRealNameToo

LesDee said:

 My case highlights what I believe to be a systemic problem in how Trust Deeds are being sold, administered, and overseen, which risks leaving vulnerable people trapped, exploited, and paying more than they ever owed in the first place.

You may want to clarify what the deed was for? Deeds of Trust are used in many scenarios, like if you buy a property with others as tenants in common, the deed will state what percentage each person owns and in its absence the law would assume everyone is an equal owner irrespective of initial contribution. 

RAS

The OP needs to make explicit that a Trust Deed is a Scottish debt solution not wholly unlike a southern IVA. 

I know little about them other than that in both cases someone who later gets a windfall or higher income can pay back more than they originally owe as they now have to pay off the original debt and the insolvency practitioners' fees.