Trust Deed
So you have finished your trust deed and now you don’t know where to start to get your life back on track.
I had a Trust Deed that finished in September 2009, such a good feeling to be completely debt free. I realised I would have to start all over again and repair my bad credit rating as I eventually wanted to buy my own house. So after some research I started to repair all the damage I had done to myself financially.
The first thing I needed to do was make sure the correct information was on my credit file. There are 3 main agencies that keep credit records and these are Experian, Equifax and Call Credit. I became a member for each agency online so I could get a look instantly at my report, I got my first month of membership free with each agency, so no cost to me as long as I remembered to phone in a month and cancel!
Each company may hold different information on you depending on which company your creditors reported to.
First thing you need to do is check that all creditors that were part of your trust deed have the correct default date on file, this should be the date you signed the Trust Deed. It is important that this date is correct so that your defaults fall off at the right time. To get this amended you will need to write to each creditor confirming the start date of your Trust Deed and enclose a copy of the Trust Deed.
Next you need to wait for a discharge letter from your Trustee, this can take a few weeks to come through, the trustee will issue you a letter confirming that all your creditors have been paid off. If you don’t hear anything from your trustee never be afraid to ring and find out what is happening.
Once you have received your discharge letter from your trustee all creditors should update your file to show as payment settled or satisfied. Some creditors will do this as soon as they receive payment, some may take a push in the right direction.
Now you have your letter check your credit file and see if any creditors have amended to show that the default has been settled. If not you will need to write to each creditor enclosing a copy of your discharge letter, by law your creditors are required to make sure the information they enter is correct. There are various template letters available on the internet, I have included a copy of the letter I used in the resources. I used the same letter to get my default date amended and to get my file marked as settled.
You should allow the companies 6 weeks to update your file, if they have not updated ring and chase them, making a point of what they are required to do by law. All my creditors responded to my letter and I never had to chase them.
Sometimes a creditor might have sold your loan onto someone else, if the new creditor does not update your file or respond to your letter or telephone calls contact the original creditor as you signed the agreement with them and they are still responsible for making sure the correct information is on your report.
You can find contact addresses for your creditors on your credit report, you will need to know your account numbers, don’t worry if you don’t just ring your creditor and although they may not be able to give you an account number they will give you a reference number.
All your defaults will stay on your file for 6 years from the date of entry, your date of entry will be the date you signed your Trust Deed.
Once your report is all tidied up it’s time to think about rebuilding your credit. There are a few things you can do, first I upgraded my bank account from a basic current account to a current account with a debit card, I also got a Vanquis credit card, the APR is very high but I just wanted to rebuild my rating, use this only once a month and always clear the balance, that way you avoid interest and get a good entry every month in your credit file. I also got a Next account and again whenever you use this always pay the balance in full. Remember credit searches leave foot prints on your file so try to space out your applications every couple of months and don’t apply for anything you think you won’t get. I also applied for and got a small overdraft on my account to build a good borrowing relationship with my bank as I wanted to get a mortgage in the future.
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