PPI and bankruptcy??

Numoo

Hello everyone! This is my first post here so completely apologize if this is in the wrong place!

Basically to cut a very long story short my self employed OH had to claim bankruptcy because his PPI would not pay out when he was off work with a bad back (crumbling disks)

We have recently looked into this PPI reclaiming fees and it *looks* as though it's going to be refunded!

Would you go ahead and ask for more compensation for this? Seeing as the reason he claimed bankruptcy was for his PPI not paying out? Which in turn has left us unable to move to a bigger house (rental in this area won't touch bankrupts) and generally in a !!!! situation if we (he) ever needed to borrow money.

His loans were to start up his own business and to buy a van/tools ect - everything else we've bought ourself like cars ect

JCS1

Sorry, but it's not your money, and the right to take forward such an action to reclaim vested in the OR when the BR order was made.

The bank will either use the PPI refund to offset the debt that was written off in bankruptcy, or the money will go to the OR.

More details here:

https://forums.moneysavingexpert.com/discussion/3461629

Numoo

Thanks JSC1, off for a look now

dunstonh

Would you go ahead and ask for more compensation for this?

The method of redress is defined. Its not a haggling competition.

Seeing as the reason he claimed bankruptcy was for his PPI not paying out?

The PPi is not the cause of the bankruptcy. Insufficient income and savings due to inability to work is the cause. if income protection had been a concern then your OH should have taken out an income protection policy. the fact he didnt indicates that it was not a concern. A payment protection is a budget option with limited scope at best.

Numoo

The PPI was offered to cover the repayments should he become too ill to work, all our savings were put towards paying off this loan which was ultimately too much for us to afford. When our savings run out and the PPI wasn't applicable like it *should* have been, this is when he filed for bankruptcy. We had no help, and then no savings to fall back on...

Sorry if I made it sound like a haggling competition, wasn't meant to come across like that?

Numoo

OH being self employed was never entitled to the insurance in the first place, bu was still sold it with the understanding should something happen to him that he would be able to claim (which was utter lies)

dunstonh

The PPI was offered to cover the repayments should he become too ill to work

The PPI at best, if the claim was successful, would have paid out for 12 months loan cost. That almost certainly would not have been enough to stop bankruptcy. It probably would have just delayed the inevitable

Sorry if I made it sound like a haggling competition, wasn't meant to come across like that?

Don't worry. I am the last person to say anything about posts not coming across as intended. My short responses are often viewed as blunt. Whereas in reality, I try to keep them short and to the point so the message isnt lost in a lot of woolly text.

OH being self employed was never entitled to the insurance in the first place, bu was still sold it with the understanding should something happen to him that he would be able to claim (which was utter lies)

The problem is that the PPI refund issue is largely one created by the FSA. For 30 odd years, the regulator has been quite happy with PPI being sold as it was and set up as it was. Then virtually overnight, it changed it's mind. The courts havent viewed it in the same way as the FSA has. Even the likes of Black Horse have been winning court cases which would have been upheld at the FOS. Most PPI redress payments are made as goodwill payments rather than saying they were mis-sold. Check your paperwork and see how it words it. By saying it is a goodwill payment, they are not acknowledging liability for any consequential events. If they acknowledge it is a mis-sale and accept blame, then they can potentially be liable for consequences that arose from that.