PPI Claims after bankruptcy

alastairq

Surely, if they're going to file ppi claim on my loans they will need to contact me for information? I might still have some ppi claims on some credit cards but as I read here I shouldn't bother as it will just be a wasted effort because I won't get the money away. Thanks in advance for any reply.

The OR will investigate PPI claims with known creditors.

Major financial institutions will usually check for bankruptcy before paying out any claims made personally by an ex-account holder. [Folk have reported on here how they have made a clam, but the creditor has forwarded the monies directly to the OR.]

Some have reported how creditors in a bankruptcy have retained some of the compensation due, to offset their own debt. How 'legal' this is, with a Bankruptcy in the game , I don't know?

The big danger for BR people is, engaging a company to claim on their behalf [when the right to claim has vested with the OR]...?

In other words, the BR actually no longer has the authority to engage a company to claim on their behalf.

Whilst the compensation may go directly to the OR, the company engaged to make the claim may well pursue the BR person for the administrative costs?

Whether such a claim for costs can be successfully rebuffed [on the grounds that the person engaging the company had no authority to do so? ANd that the company ought to have known that?} I have yet to discover.

debt_doctor

alastairq wrote: »

Some have reported how creditors in a bankruptcy have retained some of the compensation due, to offset their own debt. How 'legal' this is, with a Bankruptcy in the game , I don't know

Hi, My view is that this would be 'a remedy for the debt' and therefore contrary to s251g of the Insolvency Act, however, the IS nearly always back down against powerful institutions, so this is their position..........


RIGHT OF SET-OFF
31.9A.78 Right of set off - overview
There is an automatic right to set-off any compensation in relation to mis-sold PPI against any provable debt held by the lender at the date of a bankruptcy order URL="http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part9A/Part%205/Part%205%20notes.htm#1"][COLOR=#0066cc]note 1[/COLOR][/URL. This is particularly relevant to an outstanding unsecured debt but will also apply to any shortfall in respect of secured debts (see paragraphs 31.9A.85 to 86).

31.9A.79 Right of set-off is automatic
Set-off should be automatically applied where at the date of the bankruptcy order, the financial institution liable to pay compensation also holds a provable debt in the bankruptcy proceedings.
By way of example, if the financial institution is liable to pay compensation of £2,000 but holds a provable debt of £5,000, the institution’s claim is reduced by means of set-off to £3,000 (£5,000 - £2,000).


DD

jackio

Hi. Thanks for all your reply. No one has answered my question though. Do I still need to inform OR about my change of address? Or they won't have anything to do with me now and they just will chase my money without informing me?

miss_sparkle

Hi, I went BR in April 2008 I only had 1 loan that had ppi on it. Anyway I didn't think I would be entitled to anything back so I never applied for it. About 6 weeks ago I got a letter out of the blue from HSBC who the loan was with (this was included in BR) just a general ppi questionnaire so I completed it anyway and sent it off, 1 week later I got a letter offering me £2k compensation. I kept telling my husband I wouldn't get it and that the cheque would have the OR's name on it but 4 weeks later I recieved the payment direct into my bank account.

So not sure if it because I am now out of the 6 years or if I'm just lucky but I have had the payment despite being an ex BR.

Flyright

If the debt from which the PPI was awarded was included in your bankruptcy you are not entitled to the money and should inform the OR.

TheGardener

jackio wrote: »

Hi. Thanks for all your reply. No one has answered my question though. Do I still need to inform OR about my change of address? Or they won't have anything to do with me now and they just will chase my money without informing me?

No - if you are AD then you no longer need to tell the OR where you are. In reality - if they reeealy wanted you, they could find you from the CRA's anyway. Yes - they will claim any refund of PPI themselves based on your CRA files.

andypandy74

Following a divorce, i was forced to go bankrupt in January 2103.
Would i be wasting my time by re-claiming ppi`s ?
would it get taken from me straight away ?

luvchocolate

Hi PPI is not yours to claim it belongs to the OR it is their job to claim, The OR sends out a letter asking if you had any PPI.
If you were to claim as you asked...it would be sent to the OR, sorry

TheGardener

...not only would you not get the PPI pay out - you would be left with the bill for the company who claimed it on your behalf (if you used one) ...leave well alone.

Yellabowley

We looked into this. The company claiming on our behalf said that we can claim but there are two issues:

1. The product on which the PPI was added must not have been part of the bankruptcy.

2. The company must not have been part of the bankruptcy on another product (if Barclays added PPI to a loan you had with them that ended two years prior to bankruptcy and a Barclays credit card was part of the bankruptcy then you wouldn't get any money back).

So if you went bankrupt in 2012 and were discharged in 2013 and the only company you owed money to was Lloyds then you can claim back the PPI on any other products from other lenders that were repaid prior to 2012.

This is advice from a PPI claims company who are now pursuing the one relevant case we have. It is no cost to us so the risk is all theirs. I doubt they would go to the expense of a claim if they didn't know what they were talking about.