Life after Trust Deed?

A question about : Life after Trust Deed?

Hi Folks - newbie here so hope I'm posting in the right forum. I'm halfway through a protected trust deed and wonder if someone who has been there has discovered light at the end of the tunnel? (now I think of it, the trust deed was the light at the end of the tunnel for me). But I was wondering if I would be able to easily remortgage or be eligible for other forms of credit and get back to 'normality'. I'd like to be able to move house for various reasons and hoping this will be a possibilty in the future?

Best answers:

• Hi BB,
  I'm no expert, but if a trust deed is simlar to an IVA (except for 3 years instead of 5?), then your TD may show up on your credit file for 6 years from when it started. So you may find some difficulty in getting credit for some time. That said, from reading other posts on here, there are some lenders that will give you a mortgage but you will likely pay a higher interest rate, until your credit record improves.
  No doubt if I'm wrong, there will be an expert along to correct me!
  So it's a bit of a mixed picture, but on the bright side, in England the equivalent (IVA) lasts for 5 years . Hmmn.... think I might move north of the border!!!
  Good luck wih everythng, hope you get everything sorted,
  RiH
• What is a trust dead? I may sound dumb.... but I just wanna learn
• Your TD will stay on your credit file for at least five years after it was put on -I think! This might hamper your wish to get back to normal after it ends as you could either be refused credit or only allowed at higher rates. Once it falls off then you should be fine.
  Tim- a Trust Deed is the Scottish equivalent of an IVA although I understand not necassarily identical. If you don't know what an IVA is then there's a good article by Martin on the other part of this site.
• Thanks for the replies folks. I'm quite hopeful that life has not ended...even if I have to pay through the nose for it! RiH - come on up here
• BB, don't tempt me, I love Scotland (my Dad is Scottish, so it's in my blood!)
• Hi folks
  I am in a similar situation to Billy Bear. The trust deed was my saviour too after my former girlfriend !!!!!!ed of leaving me with 30k of debt (hers I may add. I took out a loan in my name to pay them off). I am now coming to the end of my payment period. I wonder if anyone would be able to advise me how I could begin to improve my credit rating. Also what are the chances of me obtaining a mortgage at some point in the next couple of years.
  My current partner and I also want to open a joint savings account but I am worried that my problems will have an effect on her credit rating.
  I am determined to get my life back and don't want to suffer any longer because of someone's actions. Any ideas?
  BTW the trust deed does not appear on my credit file only the loan default. Should I have this amended??
• Hi all
  Sorry this is delayed, but hopefully I can hopefully help you a bit here. I began a trust deed in 2003 which is now complete. I'll give some brief points for now and if anyone wants more info, just let me know.
• The credit agreements that fell under the trust deed will stay on your credit file from 6 years from the date that you took the trust deed (date of default on your file). HOWEVER many companies will not have updated the file correctly. This means a) the dates of default will be wrong and they won't drop off your file at the right time and b) may not be marked as settled which they should be once you finish the deed and have the letter to prove discharge. To sort this out, you need to write to all applicable creditors, enclosing a copy of the letter. there is a template letter to send which tells them it is against the Ombudsman guideliens to makr the default any later than the date you signed the deed - PM me if you want it. It can be a painful process to gt your file updated (you obviously need to access your credit report to see which entries are wrong - some of mine were marked up to a year late). I found I was able to contact many by phone after the oriignal letter and get things changed but it took a few months.
• In terms of getting a mortgage, it's possible but in the current climate very very difficult until you are at least one year post-discharge and have a minimum 10% (probably more) deposit. I found London & Country offered good advice and they are free. However, things have changed since I was looking for a mortgage and it may be harder now as it is for everyone.
• Rebuilding credit - in the past couple of years I have been able to get a mobile through 3, a Vanquis credit card and a Next Directory account. This is the best way to rebuild credit- spend a little each month and then immediately pay it off. Shows you are borrowing responsibly - requires a lot of discipline. Never miss a payment, never pay late, space applications out over a few months, don't apply for too much credit (especially credit you probably won't get). Make sure you're on the electoral roll.
• As for whether to ask the credit agencies to put your deed on the file - not sure. Mine does appear on Experian in the court section - but is now marked settled, and will again fall off at the 6 year point. If you're going for a mortgage it will come up on the solicitor's search anyway until you're fully discharged.

I hope that helps a bit - it pays to spend a bit of time making sure things are in order in my experience. As soon as you make a joint application for something like a mortgage, your partner will be linked on your file, but in my experience it has not made any difference to my partner's credit - it is something to be aware of though.

• Hello Bexter
  Can you point me int he direction of the template letter regarding creditors ssuing defaults after trust deed has started
  Thanks
  M
• Data Control Officer
  Data controller address
  Date
  Dear Sirs
  Re: Account Number xxxxxxxxxxx
  After consultation with both the Information Commissioner and the Credit Reference Agencies, I am writing directly to you to request that you formally update my credit files in accordance with the Data Protection Act.
  I signed a trust deed on XXXXX which became protected and was subsequently discharged on , and was included within the Trust Deed. For your convenience I have attached my Discharge Notification and a copy of the original Trust Deed.
  Currently the information that you have recorded against my name with the Credit Reference Agencies is factually incorrect and as yet your company has failed to correct the entries as required.
  • It is requested that if you intend to default the account, the default entry must be , in accordance with the Data Protection Act.
  • It is requested that you mark the account in some way as to indicate that it is settled or satisfied, in accordance with the Data Protection Act.
  • If you have sold the debt on, according to the Information Commissioner, you are still liable to ensure that both you and the new holder are aware and that as the originator of the information it is your responsibility to ensure that it is corrected.
  The Information Commissioner has indicated that I should allow you 28 calendar days from the date you receive this letter to comply, during this time you are requested either to update the Credit Reference Files correctly (of all three Credit Reference Agencies) or notify me in writing the reasons that you refuse to.
  After the 28 days have elapsed the Information Commissioner has requested that I inform them if your company fails to update the records so that they may take any necessary enforcement action against your company.
  I have copied the relevant information provided by the Information Commissioner as an attachment to this request.
  Yours faithfully
  There you go - I don't know if you're intending to use it before discharge and I don't know how that works to be honest - maybe someone else can advise, or this appendix info may help..
  The ICO info..
  Relevant Extracts from Bankruptcy - frequently asked questions – 18/06/07 issued by the ICO
  Frequently Asked Questions - Bankruptcy
  I’ve noticed that an account that was included in my bankruptcy is marked in default later than my bankruptcy. Can I do anything to change it?
  Sometimes a lender will not know the exact date you were made bankrupt. This may mean that when the lender registers a default with the credit reference agencies, the date on the default is later than the date on your Bankruptcy Order.
  If a particular debt is included in the Statement of Affairs at the time of the bankruptcy, you can ask the lender to change the date of the default to the date on your Bankruptcy Order. To do this, you should write to the lender and ask them to change the default date to the date of the Bankruptcy Order.
  Remember to send the lender a copy of your Bankruptcy Order or other documentation which confirms the date you were declared bankrupt.
  If the lender refuses to change the date of the default then you can contact us using the enquiry form on our website https://www.ico.gov.uk
  You will need to send us: a copy of the Bankruptcy Order or document that confirms the date you were made bankrupt; proof that the debt in question was included in your bankruptcy; and a copy of the lender’s letter which says it won’t change the date of the default.
  What happens to the defaulted accounts on my credit reference file?
  After you have been discharged from your bankruptcy you can send proof of your discharge to all the lenders included on your Statement of Affairs.
  The lenders whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account (perhaps by marking the entry as 'partially satisfied’ or ‘partially settled’ or in some other way).
  Once the lender has changed the information on the entry, if you make any new credit applications the prospective lender will be able to see that you do not owe any more money on that account.
  Finally, if you wish, you can ask the credit reference agency to add a statement called a ‘Notice of Correction’ to the default entry. In your statement, you can explain that the entry was included in your bankruptcy which is now discharged.
  If the lender refuses to change the date of the default or mark it as ‘satisfied’ or ‘settled’ or to indicate in another way that you have fulfilled your obligations to that lender then you can write to us at: Information Commissioner, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF
• Hi there my trust deed final payment was on June 2009 and i still have not received my discharge letter, is this normal practice? i have called them and they keep fobbing me off saying they have a back log ??
• Thanks for that ! , any idea how i go about getting my credit files cleaned up?
• Yes - read all my posts above!
• ok i have read, good info , would it be a good idea if i joined equifax or experian or both? which would you recommend? and do i then just start contacting the companies to sort stuff out? would i not need a copy of my discharge letter as proof so they can update my file etc....?
• ok i have read, good info , would it be a good idea if i joined equifax or experian or both? which would you recommend? I would get copies of your file from both - some companies only report to one or the other so you need both to get the full picture
  and do i then just start contacting the companies to sort stuff out? would i not need a copy of my discharge letter as proof so they can update my file etc....? The discharge letter doesn't make any difference to the creditor really. You're asking them to change the date you defaulted on the payments to when you started the trust deed - so all you need to prove that is the actual trust deed document that you signed and the letter above. Then the file will disappear from your record after 6 years. So for example -
  you signed a trust deed on April 1 2004
  you had an ABC credit card that was included in your trust deed.
  ABC still recorded non-payment every month until Jan 2005 so it will be the automatic 6 years from then - Jan 2011 - before the file drops off your credit card
  When you show ABC you signed a TD in April 2004 they should change the default date on your file to that date - so it will then drop off in April 2010
  So I would say yes - just start contacting them now - you can always send the discharge letter later if they ask for it
  HTH
• excellent advice, thanks for that
  G
• hi guys, i'm looking for a bit of info from people who have taken out td, i am consiodering this at present but it sounds too good to be true - is it worth taking out or should i go with a dmp - have Ј7500 unsecured debts, all behind due to partner being made reduntant, now trying to catch up but its impossible to do everything at once.
  thanks
• Bexter
  I'm 18 months through my trust deed and have just requested my credit file to see if my creditors have got their dates correct after reading on this forum that they often make mistakes.
  If they are wrong at this stage would it be worth my while sending them a letter to request the date be changed to the date of the trust deed?