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Rotherhamram
New Member

5 Posts

Posted - 03 December 2020 :  19:52:59  Show Profile  Reply with Quote
Hi,

My trust deed ran from July 2005 and I was discharged in November 2008. My trustee no longer practices as far as I can see

Iíve recently made a claim for PPI from HSBC and after a few claims of not being able to find my accounts. Signature issues etc .. theyíve finally found my accounts but are now saying they need a letter of authority from my trustee before investigating. I provided my F11 letter of discharge.

I rang them today after receiving a letter requesting a signed letter of authority from my Trustee and that my trustee was still practising (they gave the wrong name but correct address. Googling the name given does not come up with any contact details and non were provided by them.

During the phone call I was told there was money due but they wanted to make sure that my trustee had no retained interest in it and I could be paid the compensation. I argued that as my trustee had been discharged that there is no longer an interest from him, and that as there is no trustee it is impossible and unfair of them to expect me to get a letter from one.

I have done some research and found the Mond Ruling which says (unless Iím mistaken) that PPI compensation fir claims after the discharge process is made is an asset of me and not my trustee. Iím just wondering should I call them again tomorrow and mention this or should I go through the FSO as they seemed very unwilling to budge on this letter of authority being needed.

TDA (Debt Adviser)
Trust Deed Expert



13705 Posts

Posted - 03 December 2020 :  22:22:45  Show Profile  Reply with Quote
Welcome to the trust deed forum Rotherhamram.

I can understand why HSBC are nervous. In some other types of personal insolvency in the UK you wouldn't be entitled to receive this cash. For example, I personally know someone involved in handling PPI claims at a major UK bank that paid out lots of PPI claims to claimants and then, later, had to make the same full payments again to the claimant's former bankruptcy trustees!

If there is no possible way to arrange a letter of authority from your former trustee (or their successor) you could inform the bank that you'll take the matter to the Financial Ombudsman Service if they don't arrange a prompt payment for you.

A complaint to FOS will cost them £650 before they have to pay anything to you, so hopefully that might focus minds.

It would be better if you could get them to understand how post trust deed PPI claims work differently though, because a FOS complaint might not get dealt with especially quickly in the current circumstances.

There's also a longstanding legal scenario with another bank that doesn't believe they should pay out at all if they wrote money off as part of a trust deed. If they were to prevail somehow in court it might affect HSBC's willingness to pay you (if they wrote off money as part of your trust deed). That type of outcome might also influence how the FOS views the situation.

If you can get HSBC to understand that the situation with trust deeds is different to some other types of UK personal insolvency it might lead to a quicker and/or better outcome for you.

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Kevin Mapstone
Trust Deed Expert



3969 Posts

Posted - 04 December 2020 :  09:14:19  Show Profile  Reply with Quote
I think it should really be up to the bank to satisfy themselves regarding your former trustee and make any calls etc that they need to make. Other banks certainly do it that way.

The fact that you are no longer showing on the Register of Insolvencies should be enough to satisfy them that your trustee is no longer in office on your case, and as you say, the Mond case settled the issue of whether a trustee who has already been discharged has any claim over the funds. As you say, maybe best to set all of this out in a letter of complaint with a threat to take it to FOS.

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Rotherhamram
New Member

5 Posts

Posted - 04 December 2020 :  22:34:43  Show Profile  Reply with Quote
Thank you for your replies.

If I draft a letter and post it on here could you cast an eye over it for me?
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TDA (Debt Adviser)
Trust Deed Expert



13705 Posts

Posted - 05 December 2020 :  15:47:40  Show Profile  Reply with Quote
Happy to take a look at it if you'd like to post something here Rotherhamram.

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Rotherhamram
New Member

5 Posts

Posted - 28 December 2020 :  14:52:34  Show Profile  Reply with Quote
Iím still working on my letter to HSBC will post it here when I have, is it true that offsetting has been deemed illegal too so as and when I get HSBC to agree that I can be paid the compensation they canít withhold any of it?
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Kevin Mapstone
Trust Deed Expert



3969 Posts

Posted - 29 December 2020 :  10:55:37  Show Profile  Reply with Quote
We aren't lawyers here, Rotherhamram, so would be reluctant to make any statements about the legality or otherwise of "offsetting" PPI funds. It is certainly true that a recent decision went against RBS in this respect, however.
I don't believe HSBC have been engaged in that practice anyway, so I wouldn't expect that to be a fight that you will have to face.

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Rotherhamram
New Member

5 Posts

Posted - 07 January 2021 :  16:08:20  Show Profile  Reply with Quote
quote:
[i]Originally posted by TDA (Debt Adviser)[/i]
[br]Happy to take a look at it if you'd like to post something here Rotherhamram.



Hi, itís taken me a while to compose my letter. Could you check over it please.

Dear Sir/Madam

I am writing in reply to your letter dated ...... in which you request a signed letter of authority from the Trustee of my Trust Deed stating they have no retainer interest in the debt included in the Trust Deed. Prior to this letter I sent you copies of the trust deed and final discharge of myself and my trustee in November 2008, and that the Trustee is no longer practicing.

Following a phone call I was informed that even though the Trustee was discharged of his duties I needed a letter still, and you gave a name and address of who you believe the Tustee is. I have researched and attempted to contact that person with no success.

During my research I found the Mond Ruling from October 2018 in the Scottish supreme courts (applicable as Trust Deeds come under Scottish insolvency Laws and operate differently to other types of insolvencies) which states that once a debtor is discharged from his trust deed the debt is discharged in full and that once the Trustee has made final distribution of assets and is discharged from his duties the Trustee has no claim on assets (in this case PPI compensation) discovered after the date of discharge.

I believe that this ruling applies in my case as my discharge was in 2008 and the PPI claim for Miss selling was discovered in 2018. As such a letter of authority is not required from my FORMER trustee as under the Mond ruling he has no claim on the asset discovered at a later date.

I expect that my claim is processed without delay and I receive indication from yourselves within 2 weeks of this letter indicating this, otherwise I will be left with no option but to raise a complaint with the FSO as I believe my case is being handled in a manner to discourage myself from claiming compensation that is due.


Yours Sincerely


........
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TDA (Debt Adviser)
Trust Deed Expert



13705 Posts

Posted - 07 January 2021 :  16:16:17  Show Profile  Reply with Quote
Hi Rotherhamram.

I have no legal training but this letter seems to cover the important points.

I'd just change FSO to FOS (or Financial Ombudsman Service) at the end of the letter.

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Rotherhamram
New Member

5 Posts

Posted - 07 January 2021 :  17:03:14  Show Profile  Reply with Quote
quote:
[i]Originally posted by TDA (Debt Adviser)[/i]
[br]Hi Rotherhamram.

I have no legal training but this letter seems to cover the important points.

I'd just change FSO to FOS (or Financial Ombudsman Service) at the end of the letter.



Thank you very much
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Swandog
Advanced Contributor

220 Posts

Posted - 08 January 2021 :  22:31:09  Show Profile  Reply with Quote
Looks good to me Rotherhamram. Let us know how you get on.
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