PPI and Bankruptcy

VinJones99

Can anyone help? I have gone through a “firm” for my first claim. It has taken over 3 months but finally the Bank made me an offer but did not send it to my agent.
It was a substantial amount BUT the bottom paragraph read:
“What will happen now?
Our records indicate that your financial affairs are now being managed by an insolvency practitioner. We will liaise with the insolvency practitioner and apply the proposed payment as directed by them.”

I was discharged from the bankruptcy in April 2010 and have subsequently paid £490pcm as a court order from August 2010. This was to be for 18months.

What are my options? I would like an independent view prior to any discussions.

Thanks in advance

dunstonh

I have gone through a “firm” for my first claim. It has taken over 3 months but finally the Bank made me an offer but did not send it to my agent.

You have a problem. You should never ever use a claims company when you have defaults/arrears or amounts written off. You may end up not getting a penny of redress but still have to pay the bill to the claims company.

What are my options? I would like an independent view prior to any discussions.

The amount of redress is allowed to go against your debts. Now that may mean that after any amount written off has been repaid, it could reduce the £490pm that you are paying. However, you are unlikely to see any more personally unless there is any surplus above your debts.

You also need to be prepared for a bill from the claims company even if you dont get a penny of the money yourself. They charge against the amount the bank pay. Not the amount you get in your pocket.

You may want to check your contract with the claims company as no honest claims company should have taken you on. We have seen the more honest ones correctly refuse to take on people with arrears/defaults/write offs/bankruptcy. You may also wish to discuss this with your insolvency practitioner as to whether you were able to enter into such an agreement with a claims company in your position.

magpiecottage

dunstonh wrote: »

You also need to be prepared for a bill from the claims company even if you dont get a penny of the money yourself. They charge against the amount the bank pay. Not the amount you get in your pocket.

You may want to check your contract with the claims company as no honest claims company should have taken you on. We have seen the more honest ones correctly refuse to take on people with arrears/defaults/write offs/bankruptcy.

The Conduct of Authorised Persons Rules 2007 says under client specific rule 1b, on page 6, a business shall "Ensure that any service offered is one that meets the needs of the
client".

The OP could never receive any benefit either directly (in cash) or as written off debt (because the bankruptcy had already written it off). Therefore, I think the firm has breached this rule and the OP will have grounds for complaint if it seeks to pursue him for it.

This might not apply if he was simply in an IVA but for a bankrupt it seems far clearer.