Protected Trust Deed Websites – A Cautionary Tale

Earlier this year Trust-Deed.co.uk, a website focussed on the Scottish protected trust deed debt solution, ran a survey. One of the questions asked of the public was whether, when reviewing a trust deed or debt help website, they had discovered misleading or incorrect information. In common with the answers to some other questions in the survey, the results were quite shocking.

Amongst those who expressed a definite opinion, 48% reported that they had indeed reviewed what they now knew to be misleading or false advice on such websites.

In this article we are going to look at some of the various websites which contain information about protected trust deeds. We will include details of the background to these differing types of website. We trust that this background information will help readers to confirm whether or not the trust deed information they are reading is likely to be accurate and useful for them.

Trust Deed Intermediaries

Trust deed intermediaries are companies which offer debt information and help with a view to passing potential cases to a protected trust deed company. They are paid by the protected trust deed company for the work they have done on the case. Some such protected trust deed intermediaries also charge their client a fee for their help prior to making the introduction to a protected trust deed provider.

Websites operated by trust deed intermediaries generally focus heavily on the benefits of protected trust deeds with much less focus placed on the potential drawbacks that apply to some people. Positive case studies and testimonials tend to feature strongly. Such emphasis on the “positives” at the expense of presenting a balanced view may lead to some visitors feeling they are being “sold to” rather than properly “advised”.

Trust Deed Providers

Insolvency Practitioners are the professionals that handle Scottish trust deeds. Most work for companies which are either general accountancy firms or who specialise in insolvency.

Accountancy firms tend to include a couple of pages on their websites which relate specifically to insolvency and protected trust deeds. These web pages generally offer a more balanced picture of the process and service than might be found on the site of a trust deed intermediary. Typically the information can be considered to be reliable as it is subject to the review of the professional bodies which regulate the accountants and insolvency practitioners at the provider.

Insolvency specialists may take a slightly more sales-led approach with their websites than a general accountancy firm. However, once again this information is subject to the review of professional bodies and as such can typically be assumed to be reliable.

“Protected Trust Deed Compare” Websites

In recent years we have seen the rise of “comparison websites” which have made it easier to compare quotes and therefore to save money. Unsurprisingly such a “comparison” concept has spread to increasing numbers of niche areas now including Scottish trust deeds.

Such websites are usually operated by trust deed intermediaries and as such tend to focus on protected trust deed positives at the expense of negatives.

The basis of such a site is that a member of the public might visit the website and compare protected trust deed providers in terms of how much it would cost them to sign an arrangement to deal with their debts. The concept however makes no sense whatsoever; the website knows little or nothing of how much you can afford to pay towards your debts at the point at which it makes the “comparison”. A trust deed provider is legally obliged to ensure that the debtor does pay what they can reasonably afford if they sign a protected trust deed.

Such “trust deed compare” websites tend to write in their small-print that they are in fact making a comparison of what it would have cost you had you approached the most expensive protected trust deed introducers (companies which charge upfront fees to pass your Scottish trust deed case to a real trust deed company). It has nothing whatsoever to do with the fees protected trust deed providers would in fact charge you to manage your case. It also has nothing whatsoever to do with how much you might be expected to pay into a protected trust deed every month.

Protected Trust Deed and Debt Help Forums

Forums can be a useful resource as they allow the free exchange of information and questions without necessarily needing to speak with anyone in person or to reveal your identity.

Caution clearly needs to be exercised where the experts or advisers (who are answering the trust deed questions) are using names or usernames other than their own full names in the forum. If it’s not possible to check whether the adviser has the qualifications or experience to be able to genuinely assist and help you, we’d suggest you treat any help provided with great caution.

There are many debt help and protected trust deed forums where named advisers can help. This allows visitors to do their own simple background checks to ensure the source of help is credible and reliable.

The Debt Charities

The content of websites operated by the debt charities can generally be considered reliable.

The Debt charities have no commercial incentive to focus upon “sales” rather than “advice” and therefore tend to be fair and properly balanced in terms of their advice regarding both the advantages and disadvantages which might apply should you be considering a protected trust deed.

There are no debt charities that currently directly provide protected trust deeds, so any help or information offered should be confirmed with the protected trust deed company that you might subsequently speak to after a referral.

Debt Management Operators

Most major debt management plan and IVA operators include a page on their websites regarding protected trust deeds. The standard of the information varies as might be expected of providers that themselves offer hugely varying levels of quality and service.

The largest of these debt management operators may have trust deed operators within their group of companies. They will therefore have the in depth knowledge available to them to be able to provide a good information web resource if they so choose.

Despite this many of these operators have a very limited knowledge of protected trust deeds and debt solutions in Scotland. These companies often feature very basic information, which is often sales-led rather than advice-led.

In writing this article we have reviewed many such websites which include information that is both misleading and incorrect. Therefore significant levels of caution are advised.

Government Debt and Insolvency Websites

Government departments involved in debt and Scottish insolvency may include information regarding protected trust deeds. The primary resource available is the website of the Accountant in Bankruptcy (which is Scotland’s “Insolvency Service”).

As well as providing balanced factual information about trust deeds, the AIB website also includes excellent information and help connected to other potential debt solutions such as sequestration and the Debt Arrangement Scheme (both of which are unique to Scotland).

Author:

Simon Wyllie

www.trust-deed.co.uk