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Trust Deed Companies – The Good, The Bad & The Ugly

If you’re considering a Protected Trust Deed, you will have to engage with a Trust Deed company. As you may expect, some Trust Deed companies are better than others. 

We provide some options you may want to consider below, but always do your own up-to-date research as well.

Are you wondering about trust deeds? Do you want to know more about them? This is the place for you. 

Each month, over 170,000 people visit our site looking for guidance on debt problems. They need to know about the good, the bad, and the ugly side of trust deed companies. They are asking: ‘What is the best trust deed company in Scotland?’

We understand these worries, and we are here to help. That’s why, in this simple guide, we’ll explain:

  •  What a trust deed is
  •  How a trust deed is different from a protected trust deed
  •  If you must pay for a trust deed
  •  How trust deed companies make money
  •  How to choose the best trust deed company in Scotland

We know what it’s like to have money problems; some of us have been there too. With our expertise, we’ll help you understand your options.

What is a Trust Deed?

A Trust Deed is a debt solution for people in Scotland with at least £5,000 of unsecured debt. It creates a voluntary agreement with creditors to pay back an affordable monthly amount for a fixed period, with the potential to write off some of the debt at the end of the Trust Deed.

For more information on how a Trust Deed works and who qualifies to use one, head back to our main Trust Deed page

Trust Deed Vs Protected Trust Deed

A Trust Deed becomes a Protected Trust Deed when creditors agree to the Trust Deed and specific terms. Protected Trust Deeds are a legally binding debt arrangement, which means creditors can no longer change their minds and chase debt repayments with other action. 

Don’t worry, here’s what to do!

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out. 

Fill out the 5 step form to find out more.

Do you have to pay for a Trust Deed?

You will have to pay for a Trust Deed. There is likely to be a fee to set up the Trust Deed and for the ongoing management of the Trust Deed. 

This is because a Trust Deed can only be set up by a licensed Insolvency Practitioner, who often works within commercial debt management companies or Trust Deed companies. 

What is a Trust Deed Company?

A Trust Deed company is a commercial company offering services to assess people’s suitability for a Trust Deed and then apply for the Trust Deed on their behalf. The Trust Deed company must have an in-house licensed Insolvency Practitioner to offer these services. 

Trust Deed companies will first provide debtors with Trust Deed advice to ensure a Trust Deed is the right option. However, you might feel more comfortable using a debt advice charity at this stage in the process. A debt charity can assess your debt situation and recommend the most beneficial debt solution, which may or may not be a Trust Deed. 

Are Trust Deed companies regulated?

Yes, legal Trust Deed companies must be authorised and regulated by the Financial Conduct Authority. Insolvency Practitioners are also regulated.

How do Trust Deed companies make money?

The Trust Deed company makes money by charging a one-off fee for setting up the Trust Deed and then an ongoing fee which is taken from each monthly payment. 

How much do Trust Deed companies cost?

Trust Deed companies charge an initial admin fee for setting it up, which is usually between £1,000 and £2,000. They then charge a supervisor fee, also known as a realisation fee, costing 15-20% of your monthly payments. 

The larger admin cost and the realisation fees are taken from monthly payments rather than paid as an extra! Creditors are made aware of these fees when the Trust Deed is proposed to them. 

Are all Trust Deeds approved?

No, not all Trust Deeds get approved. For a Trust Deed to be approved at least half of your creditors need to agree to the proposal – subsequently all your creditors will then be included in the Trust Deed. 

Another way a Trust Deed can be approved is if a single creditor or multiple creditors owed at least two-thirds of the total debt agree to the Trust Deed proposal. This is the case even if half of the creditors you owe money reject the Trust Deed application. 

For example, if you have three creditors, owing two of them £1,000 each and the other £7,000, you would just need the creditor owed £7,000 to agree to get the Trust Deed approved. 

What percentage of Trust Deeds are accepted?

Trust Deed companies all advertise different approval rates with varying percentages. Most Trust Deed companies claim that they have more than 90% of Trust Deeds approved. 

This is because the Insolvency Practitioner will complete robust checks before applying to make sure there is a high chance that the Trust Deed will be approved. 

How to choose the best Trust Deed company

Pay attention to Trust Deed reviews when choosing a company. Genuine Trust Deed reviews will give you a valuable glimpse into other people’s experiences and should inform your decision on how to apply for a Trust Deed in Scotland. 

Best Trust Deed companies

There are many good Trust Deed companies to choose from. The location of these companies is usually irrelevant because their services can be provided remotely. However, there are many Trust Deed companies in Glasgow and Aberdeen. 

Here is a breakdown of some of your options:

Trust Deed Scotland

Trust Deed Scotland is an option you can consider when finding ways to end your personal debt. They specialise in trust deeds and have very positive reviews overall.

Their staff is very polite and informative. Moreover, the practitioners there have the ability to talk to your creditors and convince them to lower your monthly payments.

When it comes to trust deeds, this is one of the best options to consider.

Scottish Trust Deed

Scottish Trust Deed is another company which actually promises that you won’t get pressure from your creditors. Their unique selling proposition is that they handle creditors very well and don’t let them bug their customers.

This company is another good option for you to get a trust deed that can hopefully end your debt. Also, if you’re looking for less interaction with your creditors, along with the trust deed, you should go for this option.

Carrington Dean

Carrington Dean is a trust deed company that specializes in writing off unsecured debts. From the moment your trust deed starts, they will constantly negotiate with your creditors and get some of your unsecured debts written off.

The advice they give to people is also very good. This company doesn’t just provide a trust deed, they provide other debt solutions as well such as IVA and has some DAS experts too.

Which Trust Deed Companies Should I Avoid?

Avoid Trust Deed companies that pressure you into using a Trust Deed or have low approval rates. Always consider many different Trust Deed companies to find the best option for you. 

Does a Trust Deed affect your credit score?

Yes, a Trust Deed is recorded on your credit score for six years from the date it’s approved. It will negatively affect your credit rating throughout this time, but you can start to improve your credit rating once the Trust Deed has finished, usually after four years. 

Are Trust Deeds a good idea?

Trust Deeds are the best debt solution for some people but are not recommended in some situations. This is usually because another debt solution is more advantageous, such as Debt Arrangement Schemes. The only way to know if a Trust Deed is right for you is to receive personalised debt advice. 

Work out if a Trust Deed is right for your financial circumstances by asking for free debt advice from a debt charity, such as National Debtline or Step Change Scotland. 

You don’t need to use the (free) debt advice from Trust Deed companies when considering a Trust Deed!