PPI refund being kept?

amonag68

Hello,

I wonder if someone can help me. I had a woolwich unsecured loan many years ago (now Barclays). There was an outstanding amount owing. On the 10th Feb 2009 I was declared bankrupt, within the bankruptcy term (which was 1 year) this loan was purchased by First Credit Services. They sent me the usual 'pay up or else' letter, I replied explaining I was now bankrupt and enclosed the certificate of bankruptcy. The debt should have been written off and recovery of the debt cancelled. I was not chased for the debt again.

Now on the 10th Feb 2010 i was discharged from my bankruptcy in full and have the relevant certificate as proof. After this date in March 2010 I did a ppi miss selling claim on this loan. I was awarded just over £2700 about 8 weeks later. The problem I have is that Barclays sent it to FCS saying as the outstanding debt was with them. The debt should not be outstanding at all due to my bankruptcy and as I have been discharged I have also been discharged from these debts and can receive 'proper' monies again. I ahve been fighting this ever since but FCS are saying they have the right to keep the refund to reduce the outstanding debt. Am I missing something here? Surely as the debt should no longer exist then the full refund should have come to me direct, in which case First Credit should send me the funds without delay.

Can someone explain to me if they are correct in their action. Or they simply not understanding Insolvency law.

Hope you can help

Andy:)

amersall

Try this thread here, to find out from people who know about bankrupcy and how this will work.

http://forums.moneysavingexpert.com/forumdisplay.php?f=136