Loans to contractors – demands for repayment
The Authority is aware that some people, who in the past worked as contractors and received loans from employee benefit trusts or similar structures, have received requests from the trustee or from another person, for repayment of those loans in whole or part.
The Authority would comment as follows:
- Any unsolicited contact carries a risk that it might be a fraud. If you are approached by a person who is not known to you, we recommend that you check whether the approach is genuine. For example you might contact the trustee directly, to obtain confirmation as to whether the person is acting on the instructions of the trustee, and on what basis the trustee has engaged with them;
- The Isle of Man Office of Fair Trading is required under the Moneylenders Act 1991 to maintain a register of persons carrying on a business of lending money on the island. The business of lending money includes the collection of debts. If you have a complaint against a registered moneylender contact the OFT by telephone on 01624 686500 or email email@example.com.
- The Authority cannot advise as to whether a particular loan is or is not repayable;
- Under trust law, trustees are responsible for making decisions related to the assets of trusts and who benefits from trusts, in accordance with the instrument which governs the trust. The Authority does not have powers to instruct trustees, or to intervene in the affairs of a trust – only the courts can arbitrate on trustees’ decisions. If you are dissatisfied with a decision made by a trustee you should, in the first instance, write to the trustee, expressing your dissatisfaction. However, if the matter is not resolved to your satisfaction, you should seek your own legal advice and be prepared to take the matter to the Isle of Man Courts for judgement.
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