PPI Claims after bankruptcy

debt_doctor

Hello DI,

Would you agree that in a DRO, as no assets vest in the trustee, the right of action still belongs to the debtor within a DRO and that person could persue a claim (pressumably after the moratorium period otherwise receiving more than £300 could revoke the DRO)

DD

debtinfo

Dro is not my speciality, but I think the question would be, since the asset as a right of action exists at the start of a dro, would they not have to many assets to enter it in the first place

debtinfo

as a comparison dd would a person be able to enter a dro if a family member had died and they wwre awaiting an inheritance

debt_doctor

I have to say that the guidance given to intermediaries is incredibly poor! Hardly any mention is given to any definition of an asset other than an item that you could immediately raise 300 pounds or more (excluding household goods) such as surrendering a life ploicy, an item of jewelry and the like.
I have not yet come accross the situation you have just described. What I would say is that should that person actually receive the inheritance during the moratorium period then their DRO would be revoked. There is nothing to suggest they would be prohibited from applying prior to obtaining those monies. I would check with our support unit if I came accross such an issue.
I am going to contact SSU anyway because sooner or later someone will ask the PPI and DROs question- and I have to find the answer!

DD

debtinfo

As I say I can only answer from a bankruptcy prospective, the insolvency act givesa very clear definition of what is an asset and included in that is things in action such as the ppi claim. if you are going to ask the question dd then perhaps you should. ask the wider question of whether things in action count as an asset in a dro, that could be legal disputes, employment tribunals, ppi claims, inheritances, etc

debt_doctor

debtinfo wrote: »

As I say I can only answer from a bankruptcy prospective, the insolvency act givesa very clear definition of what is an asset and included in that is things in action such as the ppi claim. if you are going to ask the question dd then perhaps you should. ask the wider question of whether things in action count as an asset in a dro, that could be legal disputes, employment tribunals, ppi claims, inheritances, etc

Agreed. That needs an answer.

DD

grannyoftwo

Great information up there Debtinfo, thank you.

I wonder if you could give me some advice also please?
We paid the final installment of our trust deed in May 2011 and are presently paying off the equity part, which will take us into November 2012.

All of the ppi's we had, were applied for by the trustee, without our knowledge, which I found a bit underhand. Out of the blue we were receiving letters from our formal creditors regarding the ppi refunds. Is this legal, that the trustee could apply for this money in our name and not tell us about it? One of the banks asked us to update our signature as it did not match the one in the letter they had received..............well it wouldnt would it, it was not our signatures.

This morning we received two letters from a bank, the third letter this week, offering us a total of almost £17,000 in refund of our hard earned ppi payments.
My problem with this is, that until the day we approached the trustee, we had struggled to pay all of our bills, and this included the ppi payments. They were sold to us and we took them in good faith, we struggled to pay them so why are we not allowed to even receive a percentage of this money?
No-one told us that should this ppi payment ever come about, that we would lose the lot to the trustee.
I mean really these banks are getting away with this all over again, because they sold us this wrongly in the first place and now for people like myself, despite admitting they were wrong, they are now getting this money back from us again.................just does not seem fair, right or legal in my opinion.

Many thanks

debtinfo

sorry granny, the scottish rules are not my area so i cant give you any info on your situation, hopefully somone who knows the scottish system will come along

grannyoftwo

hey debtinfo
many thanks for your reply, much appreciated .

Since leaving the above thank you , I now have the answer to my own question.
Despite paying my monthly payments to the trustee for three years, on time without fail, and which finished in May, I have now to hand over every penny I am being offered for ppi refunds.
The trustee has informed me that although I have paid off the arrangement we had, that the ppi refunds are classed as assets and I have to hand them over.
To date I have been offered over £20,000 and am not entitled to see one brass penny of it. I tried to argue that the bank had taken this money from me dishonestly in the first place, but it fell on deaf ears. I would also like to point out that I did not apply for any of the ppi refunds, the trustee did this without my knowledge at the beginning of this year.

AliMayhew

debt_doctor wrote: »

I have to say that the guidance given to intermediaries is incredibly poor! Hardly any mention is given to any definition of an asset other than an item that you could immediately raise 300 pounds or more (excluding household goods) such as surrendering a life ploicy, an item of jewelry and the like.
I have not yet come accross the situation you have just described. What I would say is that should that person actually receive the inheritance during the moratorium period then their DRO would be revoked. There is nothing to suggest they would be prohibited from applying prior to obtaining those monies. I would check with our support unit if I came accross such an issue.
I am going to contact SSU anyway because sooner or later someone will ask the PPI and DROs question- and I have to find the answer!

DD

Debt Doctor i'd be very interested in hearing your findings with regards to PPI claims and DRO's. Personal situation is a DRO had elapsed just over a year ago and the PPI's were mis sold before the DRO was applied for. We have a few store cards and credit cards which we could claim against so all help would be greatly received!

thanks in advance