I'm a discharged bankrupt, now NRAM reckon I am owed PPI

renegadefm

Hi, I really need sound advice because I been getting pestered a lot lately via letters and phone calls from NRAM, they seem to be a PPI review team, and they say that now that I am discharged from bankruptcy, I am entitled to recieve the PPI that I was miss sold on one of my loans which in this case is Northern Rock.

I was under the impression that any person who has been bankrupt can't claim back PPI, and that it might even cost me money to try, but they insist in the letter that requesting a review to see if I am owed won't cost me a penny.

Basically I am confused now what to do, please help !!

[Deleted User]

Are you sure this isn't some Claims Management Company? Ignore their letters and calls since you wouldn't see any money personally and (if they charge a fee) you could actually end up out of pocket.
Any redress potentially awarded would go to your creditors via the Official Receiver.

dunstonh

The typical outcome on a discharged bankrupt case is that any PPI paid after you were bankrupt comes to you. Anything you paid prior to bankruptcy can go to the Official receiver and used to pay creditors.

The review team are not necessarily the ones that arrange the payment. It is very common for one team to decide if it was or was not mis-sold and another team to work out the calculation and see who gets what. It is normally at the calculation stage that they find out if you have claimed on the policy, had a part refund due to early payment or another event, such as bankruptcy. This is why you see so many people posting that their complaint was upheld but they havent been told how much they are getting yet.

Claisms companies should tell you not to use them the minute they find out you have arrears, defaults or amounts written off. In those cases, you end up paying their bill despite not getting any money.

ALIBOBSY

I always thought like dunston said you can only claim for any PPI after the bankcrupcy date, but have seen some posts on other forums where people who were bankcrupt claim to have reclaimed earlier PPI and had it paid direct to them.
Obviously you can't verify this online and as it has only been a handful of postings there doesn't seem to be a pattern to support it and it may just have been errors on behalf of the bank paying them out directly.

May be worth ringing the FOS to clarify?

Either way don't use a claims company. I assume even if the money went to the OR if there ended up an excess you would get the extra?

Ali x

[Deleted User]

ALIBOBSY wrote: »

have seen some posts on other forums where people who were bankrupt claim to have reclaimed earlier PPI and had it paid direct to them......it may just have been errors on behalf of the bank paying them out directly.

Also remember that there are certain posters (on all forums) who enjoy posting such inaccuracies (and even downright lies).
As it says at the bottom of the page, remember that anyone can post....

debtinfo

ALIBOBSY wrote: »

I always thought like dunston said you can only claim for any PPI after the bankcrupcy date, but have seen some posts on other forums where people who were bankcrupt claim to have reclaimed earlier PPI and had it paid direct to them.
Obviously you can't verify this online and as it has only been a handful of postings there doesn't seem to be a pattern to support it and it may just have been errors on behalf of the bank paying them out directly.

May be worth ringing the FOS to clarify?

Either way don't use a claims company. I assume even if the money went to the OR if there ended up an excess you would get the extra?

Ali x

Im sure that it is true that some discharged bankrupts have got away so far with reclaiming PPI, presumably because the person paying out either did not understand the law or did not know the person had been made bankrupt. Just as there will always be some people that get away with breaking the law. But make no mistake about it, the money is owed to the bankruptcy estate, eben if the it has been paid to the bankrupt and even if the bankrupt has spent the money. When i last discussed this with the head OR in the uk they were trialling using a firm of solicitors to progress though all bankruptcies in the last 6 years starting with the oldest, checking for PPI claims. Now obviously if they continue down that path they are going to come accross claims where the bankrupt has already taken the money. This means that the bankrupt will owe the money back to the bankruptcy estate and that they will have commited a criminal offence by disposing of bankruptcy assets which is very serious.

I have attached a copy of the notice about PPI claims from the Insolvency service below that is posted on their website

Payment protection insurance (PPI) mis-selling claims and bankruptcy
PPI mis-selling guidelines
Following the recent publication by the Financial Services Authority of proposed guidelines for firms that sold PPI policies and their contact with customers who may have been mis-sold a policy, but have yet to complain, the following information may be useful to persons who became bankrupt after the sale of a PPI policy.
A PPI mis-selling claim: a bankruptcy asset
Following provisions of the Insolvency Act 1986, The Insolvency Service takes the view that if a PPI policy was mis-sold before the date of an individual’s bankruptcy, any claim relating to the alleged mis-selling of the policy is owned by the official receiver or trustee of the bankruptcy estate, not the individual to whom the policy was sold.
Discharge from bankruptcy does not alter the position
Discharge from bankruptcy does not alter this position. Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual.
Considering a PPI mis-selling claim: refer to the official receiver or trustee
If a (former) bankrupt considers that a PPI policy was mis-sold, they should not attempt to pursue a mis-selling claim without reference to the official receiver or trustee.
If a claim has already been made, the official receiver or trustee should be informed of the claim and the person against whom the claim is being made should be informed of the bankruptcy
Use of claims management companies
The Insolvency Service is aware that some (former) bankrupts have used claims management companies to pursue PPI mis-selling claims for them. If these services are used after the date of the bankruptcy order, it is possible that the individual will remain responsible for all or part of the commission charged if an award is paid to the official receiver or trustee. This may be because the amount of the commission is challenged by the trustee or if the firm against which the award is made is a creditor in the bankruptcy and exercises a right to set-off the award against its claim in the bankruptcy. This could result in no payment being made from which the commission could be paid.
As such, care should be taken before acting in this way.
Best course of action: contact the official receiver or trustee
The best course of action for any individual contemplating making a PPI mis-selling claim who is or has been affected by bankruptcy is to contact the official receiver or trustee dealing with their case before proceeding further.

dunstonh

If the lender doesnt know there was a bankruptcy then they will refund. Also, banks will make errors. They wont always have the records to show things and errors will occur.

jamesd

renegadefm wrote: »

Hi, I really need sound advice because I been getting pestered a lot lately via letters and phone calls from NRAM, they seem to be a PPI review team ... Basically I am confused now what to do, please help !!

It's most likely to be a claims management company lying about being NRAM or with a name with the same initials but different full version.

It's good to claim but discuss with your OR first so that the OR can ensure that the money goes where it should go, to your creditors, not to any companies who mis-sold PPI or to any claims management company. The OR may well want to handle the claim directly.

It's a very good thing in general for anyone who's bankrupt to consider such claims because the place that mis-sold is one of the things that drove them info bankruptcy in the first place. Their creditors deserve to have the money back from such places.

Ellejmorgan

dunstonh wrote: »

If the lender doesnt know there was a bankruptcy then they will refund. Also, banks will make errors. They wont always have the records to show things and errors will occur.

So would a person benefit at all I'll be 6 years in July since bankruptcy filed, had a loan from the bank in 2004, paid it for almost 2 years before bankruptcy..Also had credit card..Not bothered but thought I'd ask anyway..

[Deleted User]

Ellejmorgan wrote: »

So would a person benefit at all

Only in the sense that you'd have the comfort of having your lender actually admit they mis-sold to you.
Any redress potentially awarded would go to your creditors.

dunstonh

Ellejmorgan wrote: »

So would a person benefit at all I'll be 6 years in July since bankruptcy filed, had a loan from the bank in 2004, paid it for almost 2 years before bankruptcy..Also had credit card..Not bothered but thought I'd ask anyway..

It doesnt matter if its 6 years or 60 years. You are not entitled to the money. Your creditors would be via the OR.