PPI Claims after bankruptcy

dunstonh

mrsg2b wrote: »

It actually came via them, they have no interest in recovering this money and have forwarded a cheque with their compliments!

If it came via the OR that is fine. It is just that you said in your post that it came from Royal Bank of Scotland.

cwrtch

Hi i am new to this forum, i am discharged bankrupt can any one help me.
I understand that any money received from mis-sold ppi will go
to the OR.
I have a shared policy with my wife therefore it is a fifty fifty split
with my share going to the OR. ok that's fine.
The problem is that the ppi company say that they can not restructure the loan
repayments which included the ppi payments. so there have offered to pay the difference in advance. This makes up to half of the refund.
I have spoken to my trustee. with my concerns. he said over the phone that he was only
interested in the period before my bankruptcy because while i was bankrupt the trustee managed my estate.
But the solicitor handling the case for the OR just wants a flat split of fifty fifty and has asked me to
sign documents to that effect. it seems that if i don't sign, nothing happens (nobody gets any thing) ha ha.

my question is
the advanced payments are for payments that have not yet been made for the remaining term of the loan, since I am discharged
why should we pay half of the advance payment to the OR


The maths
ppi payment =100
50% payments for the term of the loan
remaining balance 50%
wife's share=25%
my share=25%
therefore the OR share is 25%

any advice please.

leigh83

I still can not take on board giving the PPI refunds to the OR. How does this seem fair? My Father in laws repossession/sale of his home totaling £75k cleared all of his debts which were under £65k in bankruptcy. This surely means that all his creditors were satisfied and that he now owes nothing to no one. He was cleared of Bankruptcy after only 5 months and has been for two years now. In theory he should have been given £10k back for the sale of his home. I still do not understand why he is not entitled to keep any refunded monies. When he spoke with his OR the other day they said that the returned money would have to go to the OR and will end up going to the Government!!! I just don't understand, give the guy a break!!

fermi

Unless he applied to have the bankruptcy annulled, then legally any right of action and PPI refund still belongs to the OR.

He should perhaps have investigated doing that, although I suspect despite an apparent surplus that fees and costs meant that creditors were not actually paid off in full from the estate.

JCS1

leigh83 wrote: »

I still can not take on board giving the PPI refunds to the OR. How does this seem fair? My Father in laws repossession/sale of his home totaling £75k cleared all of his debts which were under £65k in bankruptcy. This surely means that all his creditors were satisfied and that he now owes nothing to no one. He was cleared of Bankruptcy after only 5 months and has been for two years now. In theory he should have been given £10k back for the sale of his home. I still do not understand why he is not entitled to keep any refunded monies. When he spoke with his OR the other day they said that the returned money would have to go to the OR and will end up going to the Government!!! I just don't understand, give the guy a break!!

Don't forget that as well as the debts of £65k there would be OR's fees, Trustee fees and Secretary of State fees all added to the total.

typhoo_2

Ok here's a situation a friend is facing:

They went bankrupt a few years ago but sold the house to pay off 90% of what they owed. Leaving about £20k outstanding.

If they get PPI payments of £30k, will they be entitled to the £10k difference or does all £30k go to the OR?

Also, a little unfair considering if they did not contribute towards PPI they would have had more to pay towards other debts each month. PPI payments were a factor (although small) that they did not have enough money to pay towards debts and hence eventually becoming bankrupt.

Thanks,
Typhoo

mattannar

If the ppi claims were from before br, all the money will go to the OR.
If they both went br , then they can put the shortfall into the br.

IckleVivvy

Hope someone can help!

My soon to be ex-husband was decarled bankrupt, now discharged. Today I have a letter from the secured charge holder regarding mis-sold PPI. I haven't instigated this claim and it has been started by solicitor for the OR. The loan company need both mine and ex's signature to proceed. Do I contact his solicitor to get them to obtain his signature or should it be the OR's as it vests in his bankruptcy?

I am still paying the loan as I am living at the house and I have been paying this on my own (since before we split and can provide evidence), another query is will I be entitled to 50% or more as I have been the one paying it, would it just be off-set or could I expect payment?

Hope this makes sense!

Thanks in advance:A

HughesyMK

I find it a bit bizarre that a company can mis-sell you a financial product and no action can be taken against them because, for whatever reason, you have been declared bankrupt.

The act of mis-selling goes unpunished!

Let's say, in an extreme case, you paid over £30,000 in PPI payments and x-many years later you are made bankrupt for £29,000 - there is an argument to say that if you hadn't been mis-sold this product in the first place you would not have had to declare bankruptcy at all - in fact you would find yourself in credit.

I appreciate that there has to be a law to cover any monies received after bankruptcy, but it is galling that the 'crime' goes unpunished due to your circumstances.

alastairq

It isn't entirely true that 'no action' is taken, to claim for a mis-sold PPI.

If the claim stems from prior to a bankruptcy, the 'right'..if you like, to make the claim falls to the Official Receiver responsible for realising the BR estate.

Whether or not such a saving on premiums for PPI..would or would not have resulted eventually in an insolvency situation is neither here nor there.

If the OR fails to proceed with a claim, that is for the OR and the Insolvency Service to reconcile. [it is entirely possible that there is a department within the IS solely dealing with bulk compensation claims??]

If a discharged BR happens to make such a claim, the fact that, under the rules of insolvency it needs to be 'handed over' to the OR has no bearing on the originating company.

The money is paid!

And as far as the punitive angle is concerned, surely the fact that major financial institutions have had to set aside billions of pounds simply to meet PPI claims, must be punishment enough?

[Only Lloyds bank seems to challenge every claim....and have lost the most due to the financial ombudsman?}