Bankrupted but had PPI??

originalacidman

Im after advice as all this PPI is very confusing?

In 2004 I was made bankrupt, I have since been discharged. Prior to being made bankrupt I had a HSBC loan for £25k which they insisted that I took PPI on, which I did. I paid the loan for approx 18 months prior to going for bankruptcy. Also I had a new car on HP from Ford, and this had PPI and GAP insurance, I paid this car for approx 12 months before handing it back due to the bankruptcy.

I am now wondering if I can claim back anything, as I feel that having to pay PPI's ultimatley contributed to my need for bankruptcy as the ease of money from these companies for a young adult proved too tempting.

Anyone who is clued up on this could you please advise... thanks!

magpiecottage

You were, you say, an adult - not a child. The point about being an adult is that you are responsible for repaying your debts.

The PPI may have exacerbated your problems but ultimately it was you that chose to take on the borrowing. You could have walked away.

As far as a complaint is concerned, if it was on HP then the owner was entitled to insist on PPI and GAP insurance. If the car had been written off you would still have had to pay off the entire debt - despite comprehensive insurance only paying its market value immediately prior to its loss.

Even if a PPI complaint were to succeed against a lender, they would simply set it off against the debts that you avoided repaying because of your bankruptcy.

If you go to a claims company they will still charge you the value of any "win", even if you see none of it.

dunstonh

I feel that having to pay PPI's ultimatley contributed to my need for bankruptcy

Rubbish. They may have made the situation a tiny bit worse in your monthly cost but nobody gets bankrupted because of of insurance premium that is probably no more than £50pm.

the ease of money from these companies for a young adult proved too tempting.

Irrelevant in respect of PPI. Yes, lenders should perhaps do IQ checks on people who borrow money but that would be considered insulting. They have to decide if you can repay it and if you are an adult and can handle the responsibility that goes with it. They have to do it on very little information. Yes, they over lent money. That is obvious now. However, they only did what people asked them to do.

Anyway, as a bankrupt, you wouldnt get the money even if you complained and were successful. The line was drawn that allowed you to walk away from paying your debts. Perhaps you should complain so the creditors that lost out when you were bankrupt may see a bit of money back.

originalacidman

Ok... just wondered if I had any chance of getting a little money back as all I hear on TV is if you had PPI then claim it back, and as I did make payments for an extended time period I wondered what my situation was.
I didnt ask for my previous sad and difficult times to be riddiculed, as even £50 a month is alot of money to some people.
Atleast I know now and thanks.

dunstonh

all I hear on TV is if you had PPI then claim it back

You can only get your money back if your complaint about them doing something wrong is successful. Just having PPI doesnt mean you get your money back.

The TV adverts often border on the irresponsible and some have had the advertising standards agency take action.