PPI Claims after bankruptcy

Asimo

My mum has just informed me that BankSmart have acted on behalf of her fpr a PPI claim (she is adamant that she didn't instruct them to carry out the claim, ut for the sake of the below say she did)

She was declared bankrupt 5-6years ago and after me informing a PPI claim would not be beneficial (due to her financial history) she chose to ignore me thinking of a quick buck.

PPI claim went throught and they paid out just over £3k. This of course was not made payable to her, but was sent directly to the trustee.

Now the issue. Banksmart are demanding over £900 off my mum. She is in her 50's and has worked since she was 16. Sadly she got made redundant early last year and is finding it difficult to get work (currently on JSA).
She clearly doesn't have £900 (be lucky if she actually has £9 in her purse)

What's the best course of action? They are threatening selling her outstanding invoice to a debt collector and/or court proceedings.

Many thanks in advance

PippaGirl_2

I would make an SAR for starters to gain evidence that she signed something asking them to act on her behalf and acknowledging the fees they were going to charge. Unfortunately, if she did, then she is liable. So first of, get evidence that she did if they have it, if they don't have it, they can't pursue it. Send off for the SAR.

Asimo

Do I request the SAR (which I assume stands for SUBJECT ACCESS REQUEST?) directly from Banksmart?

Surely banksmart would be entitled to get there fee from the PPI compensation money (directly from the trustee wbo dealt with the bankruptcy? )

My last concern is, she just straight up doesn't have the money to pay. If this goes to court, which I assume it will what is likely to be the outcome?

PippaGirl_2

Yes SAR direct from Banksmart. Unfortunately you are liable for the fees even if the payout goes to the OR if you did instruct them to act on your behalf. We've had people on the board part manage to pull out of the process when they realised that they'd be left with the cost and not the benefit of the result. Banksmart are animals I see around forums for acting unscrupulously, lots of people have managed not to pay them as the fees have not been accurately set out in their t&c's having gone to court. They sound a nightmare. Is she adamant she didn't ask them to act? How else did the claim for PPI get made in her opinion? eta also when the SAR arrives, look at the date she signed the agreement, if by chance it was signed before she went BR then of course the fees would be included in the BR even if not written on the BR forms and she won't then be liable.

Bank-Smart
[Head Office]
71-75 Shelton Street
Covent Garden
London WC2H 9JQ

Asimo

I am drafting a letter as we speak.

Trying to get the truth out of my mum is like blood out of a stone. This isn't the first time she's done something like this, but sadly on this occassion I'm not in any sort of position where I can financially help.

What is likely to be the worse case scenario?

She is currently not working, lives in a council flat and literally doesn't have two pennies to rub together. I take it she'll end up going to court over it, but how can they take what she hasn't got??

Is she likely to get a knock on the door from a bailiff any time soon?

Asimo

I'm going to reply to Bank-Smart today asking for a SAR and then try to get ahold of the Official Receiver to see if they can release some funds to settle the invoice.

Otherwise she'll have to try and set up the most minimal payment plan possible (subject to the SAR stating my mum requesting the assistance in her PPI application)

Fingers crossed this sorts it.

swiftybear

Hi, I was made bankrupt 4 years ago, have been discharged but am still paying off payments to creditors through a solicitors..i have 450 left to pay....if i pay it off in one hit, can i start the process of seeing if i had ppi missold and if so, could i keep the proceeds? I have no idea if I was mis-sold, just that i had a few loans and credit cards before i went pop...thanks

tigerfeet2006

Any money from your PPI claims will go to your OR.

[Deleted User]

swiftybear wrote: »

could i keep the proceeds?

Rather than duplicating your posts over on other forums, you should probably have read through this thread!

_insolvency_website wrote:

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

10 Apr 2012
Information for individuals who may have been mis-sold payment protection insurance but have yet to make a claim.

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.

There is much more information in the "sticky" thread at the top of this forum
https://forums.moneysavingexpert.com/discussion/3766585

MJsouth

Debt doctor, I had a loan that was opened, and finished before I was made bankrupt. I have now been discharged and have been offered a PPI settlement. Do I need to notify the trustee in this case?