What do the new Trust Deed 3 day cooling off period changes mean for you?

What is a cooling off period for a Trust Deed?

Cooling off periods are common for most goods and services, particularly those which are purchased online that you haven’t seen in person. This includes both physical goods and also certain contracts such as insurance policies, loan and credit agreements, and some savings accounts.

The idea behind a cooling off period is to give a customer the time and breathing space to think about the purchase they have just made - or the contract they have entered into - and back out of the deal without penalty or charge if they change their mind.

Cooling off periods and Trust Deeds

Until recently, however, a cooling off period was not mandatory when it came to Trust Deeds. Cooling off periods for Trust Deeds were introduced in January 2025, meaning those looking to enter into this type of debt arrangement will need to wait three working days before the arrangement becomes binding.

This three-day cooling off period allows you to review the information you have been sent by your debt advisor and carefully consider whether you want to enter into a Trust Deed free from any pressure.

If you have had second thoughts, however, and no longer wish to enter into the Trust Deed, you will need to let your advisor know within the three-day window. They will then be able to talk you through alternative ways of dealing with your debt which may include a Debt Arrangement Scheme (DAS) or Sequestration.

How Scotland Debt Solutions can help

If you are struggling with unmanageable debt and are considering entering into a Trust Deed or an alternative debt solution, talk to the experts. Our specialist advisors can help you understand your options and guide you as to the most appropriate route forward. Contact the team at Scotland Debt Solutions today to start your journey to a debt-free journey.