PPI Claims after bankruptcy

fermi

Just noticed a link to this on the CCCS thread.

Payment protection insurance mis-selling claims and bankruptcy

Payment protection insurance (PPI) mis-selling claims and bankruptcy

PPI mis-selling guidelines

Following the recent publication by the Financial Services Authority of proposed guidelines for firms that sold PPI policies and their contact with customers who may have been mis-sold a policy, but have yet to complain, the following information may be useful to persons who became bankrupt after the sale of a PPI policy.

A PPI mis-selling claim: a bankruptcy asset

Following provisions of the Insolvency Act 1986, The Insolvency Service takes the view that if a PPI policy was mis-sold before the date of an individual’s bankruptcy, any claim relating to the alleged mis-selling of the policy is owned by the official receiver or trustee of the bankruptcy estate, not the individual to whom the policy was sold.

Discharge from bankruptcy does not alter the position

Discharge from bankruptcy does not alter this position. Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual.

Considering a PPI mis-selling claim: refer to the official receiver or trustee

If a (former) bankrupt considers that a PPI policy was mis-sold, they should not attempt to pursue a mis-selling claim without reference to the official receiver or trustee.

If a claim has already been made, the official receiver or trustee should be informed of the claim and the person against whom the claim is being made should be informed of the bankruptcy

Use of claims management companies

The Insolvency Service is aware that some (former) bankrupts have used claims management companies to pursue PPI mis-selling claims for them. If these services are used after the date of the bankruptcy order, it is possible that the individual will remain responsible for all or part of the commission charged if an award is paid to the official receiver or trustee. This may be because the amount of the commission is challenged by the trustee or if the firm against which the award is made is a creditor in the bankruptcy and exercises a right to set-off the award against its claim in the bankruptcy. This could result in no payment being made from which the commission could be paid.

As such, care should be taken before acting in this way.

Best course of action: contact the official receiver or trustee

The best course of action for any individual contemplating making a PPI mis-selling claim who is or has been affected by bankruptcy is to contact the official receiver or trustee dealing with their case before proceeding further.

Mau

I have read through this thread and I wonder if anyone can give me advise please. My husband and I were bankrupt at seperate times and each time the other brought the OR's interest in our property (which is in negative equity). My question is we were sold PPI with the second charge on the property (which was taken out prior to bankruptcy) of which we may be entitled to a refund. Both times the legal assignment paperwork has the following clause " In consideration of the payment by the Purchaser to the Official Receiver of the sum of £1.00 (reciept of which the Official Receiver herby acknowledges) the Official Receiver assigns to the Purchaser all the interest and rights in or to the Property now vested in the Official Receiver as trustee in bankruptcy to hold to the Purchaser absolutely" Does this mean we can claim this PPI for ourselves (it was added to the loan so we are still paying for it).

Many thanks for your help.

debtinfo

no, what you bought was the beneficial in terest in the property, the right of action for the PPI is a seperate thing

debtinfo

Fermi, i dont think they can make it clearer than that

fermi

debtinfo wrote: »

Fermi, i dont think they can make it clearer than that

Not without saying that they will come after you with their size 14s swinging if you try to claim and keep the money. :rotfl:

But yes, it's crystal clear.

And is a much needed poke in the eye for the claims companies that deliberately try to con people into believing you are entitled to make the claim and to the money if you are discharged.

BRANSTER

I went bankrupt in 2009 and was discharged in 2010 i have sinced claimed 2 ppis of hsbc total of £6k they wrote to the official reciever who said because i have been discharge they have no interest in my claim and the money was payed to me. I am currently in the process of claiming ppis of credit cards i believe all these unfair charges added to me failing to keep up payments,

debtinfo

I find that hard to believe given as you can see at the top of the page the direct quote from the OR's own website which contradicts that. It is always possible that the person they spoke to got it wrong. With that in mind i would remind you that you are dirrectly responsible for informing the OR of any assets and so you should do so yourself and not rely on any information from any other company. I would also want to see it in writing from the OR that they have no interest in the claim

debtinfo

hmm, if your looking at my post above and thinking it looks out of context, there was another post which has been deleted

debtinfo

I find that hard to believe given as you can see at the the direct quote from the OR's own website here http://www.bis.gov.uk/insolvency/personal-insolvency/ppi-mis-selling-claims-and-bankruptcy which contradicts that. It is always possible that the person they spoke to got it wrong. With that in mind i would remind you that you are dirrectly responsible for informing the OR of any assets and so you should do so yourself and not rely on any information from any other company. I would also want to see it in writing from the OR that they have no interest in the claim

traveller

The OR would claim these payments for the benefit of your creditors. I agree with the previous post. I would double check this. The OR only allows these payments if the bankruptcy was annulled.