PPI refund being kept by First Credit after bankruptcy!!

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:)

Emmzi

wasn't the PPI refund due an undeclared asset at the time you filed for BR?

Did you list it on your forms?

amonag68

No the ppi complaint was filed after I was discharged. The debt was included in my bankruptcy. I only decided to do for the miss selling after i was free from bankruptcy. So not sure what you mean really, sorry

debtinfo

It does not matter when the claim was filed, the money was due to you because the missselling occured and that occured before the bankruptcy date so it was an asset at the date of the bankruptcy order, you just didnt know it. Therefore the owner of the debt can offset any money due to you from the debt. The debt does not dissapear on discharge just your liability for it. the bankruptcy estate retains the liability to pay for it which is what has happened here. Sorry but you should have got proper advice before making the claim

debtinfo

btw if you started the action after the claim you could still be liable for costs of the company that you used

amonag68

Thanks for your info, however there might be another important point to raise here. Upon my bankruptcy in Feb 09 Barclays were the creditor for the loan (old woolwich loan) and as such were entered into the bankruptcy as a creditor. In Dec 09 they sold the debt to First Credit Services and in Jan 2010 I was chased for this debt, once I sent FCS the bankruptcy certificate collection stopped. Bascially Barclays have sold them an uncollectable debt, and as such as they became a creditor after my bankruptcy petition they have no entitlement to keep and funds I secure from a successful PPI claim, surely. Like I have said I only submitted the complaint after I was discharged. Does this info change anything?

Andy

Doucam

I'm no expert but I would think that the only thing that would change then would be that Barclays would get to keep the money themselves? As in that case the Barclays debt was part of the BR as were the 'assets' the PPI charges. And those assets were from before your BR date.

I am sure debtinfo will be along soon though to confirm or deny!!

debtinfo

Basically you are not going to get the money, if it doesent go to first credit it will go to barclays and if it doesent go to them it will go to the OR for the benefit of all your creditors

fermi

By going BR you ended your liability for payment of the debt.

In the same way, you gave up any right to anything back from it in the way of PPI/bank charges etc.

You have no legal right to the account any more, and no legal rights to any refund.

Sorry.

amonag68

Ok what you said was correct the OR are basically asking First Credit to send them the money as it was an asset prior to bankruptcy.

What I am miffed about is that I did this claim after I was discharged and apart from the ppi refund premium going to First Credit I was sent just over £900 as the 8% statutory interest, compensatory payment. The OR have asked me to send them this back in 14 days. How can that me classed as an asset prior to bankruptcy. It was a compensation payment of 8% simple interest. Are they correct in wanting this too or have I grounds to appeal?

Hope someone can help out there

Regards

Andy

now

amonag68 wrote: »

Ok what you said was correct the OR are basically asking First Credit to send them the money as it was an asset prior to bankruptcy.

What I am miffed about is that I did this claim after I was discharged and apart from the ppi refund premium going to First Credit I was sent just over £900 as the 8% statutory interest, compensatory payment. The OR have asked me to send them this back in 14 days. How can that me classed as an asset prior to bankruptcy. It was a compensation payment of 8% simple interest. Are they correct in wanting this too or have I grounds to appeal?

Hope someone can help out there

Regards

Andy

I would think you have to send all the money back to the OR as the others have said it was included in your br. I think the same would stand for credit cards and reclaiming bank charges, you can't ask for these to be repaid to you as the whole amount including charges have been written off so to speak, sorry it was a nice try but I think (and thats only me) that you will not be able to claim the money. The OR may look on it as being underhanded as you waited until you were discharged before staking a claim. But ask a legal body who may tell you, you are right.