Claiming PPI with a bit of a twist (bankruptcy)

djrichie_t

Hi everyone,

Bit of a different one this, but looking to see what should be done.

My father declared himself bankrupt a few years ago, and having no assets or anything was discharged with nothing to pay.

However before his bankruptcy, he had credit cards, store cards, loans etc all with PPI on them. He felt he was mis-sold the PPI.

Now heres the twist...

He feels that because he was mis-sold the PPI he was then unable to keep up the repayments, which eventually lead to his bankruptcy. Had he not been paying this PPI then he might not have had to go bankrupt.

Went and saw citizens advice today, they were useless.... So im suggesting should he go see a solicitor or is there a helpline he could call who could make the arrangements.

He is on very low income and now retired so wouldnt be able to afford solicitors fees etc.

Any info would be much appreciated, Many thanks,

Rich.

magpiecottage

It is theoretically possible for PPI costs to push somebody over the edge into bankruptcy but would be very difficult to prove.

That might explain why the CAB (who are volunteers) were unable to help him.

Telling him to go to a solicitor is likely to increase his financial problems as is using a claims company who will probably charge him if they win but any redress will be set off against written off debts leaving him with nothing to pay their bill.

dunstonh

Had he not been paying this PPI then he might not have had to go bankrupt.

Very difficult to prove as PPI premiums are typically not that large. Yes they are a cost but not normally enough in themselves to make a difference.

So im suggesting should he go see a solicitor or is there a helpline he could call who could make the arrangements.

The PPI issue is not actually a legal one but an FSA ruling. Indeed, the lenders have been very successful in the courts for those that have gone down that route.

He should also avoid claims companies at all cost. Even if he is successful, any redress on PPI that was prior to bankruptcy can be set off against the debts he had written off. So, he wont see a penny of it. However, the claims company will still bill him for the amount that was paid to these debts.

Time to let it lie. Bankruptcy gave him a clean slate. Time to move on.