Claiming back PPI for debts that were written off in my DRO

Contracts_Engineer

Can you claim mis sold PPI after a DRO? and if you can do you lose some to the insolvency people should a claim be succesful

debt_doctor

Hi,
Yes, you can claim PPI after your DRO has ended. This is because assets do not vest in the trustee, unlike bankruptcy.

None of the monies you gain would go to the insolvency service or your creditors.

DD

Contracts_Engineer

thats brilliant. thanks for your time

misteradam2005

Hi all

Is this possible?? There are conflicting views on what I read about this.

My moratorium period ended in Jan 2011 and I was wondering if I tried claiming back PPI for the debts that were "written off" in my DRO, would I get to keep the money?

On the website debtrelieforders.com, it says:

"PPI claims made once your DRO has ended.

Once your DRO is completed you are free of all the obligations placed upon you & the restrictions applied to you when it was in force.

You may make as many PPI compensation claims as you want & any money you receive will be yours to spend as you see fit. Neither the Official Receiver nor the creditors included in your DRO will have any claim to it."

However, some contributers to this site say that the money wouldn't come to me and would be put towards the debt.

So I'm confused?

I would really appreciate some advice and clarity with this.

Many thanks in advance!!!

System

misteradam2005 wrote: »

Hi all

Is this possible?? There are conflicting views on what I read about this.

My moratorium period ended in Jan 2011 and I was wondering if I tried claiming back PPI for the debts that were "written off" in my DRO, would I get to keep the money?

On the website debtrelieforders.com, it says:

"PPI claims made once your DRO has ended.

Once your DRO is completed you are free of all the obligations placed upon you & the restrictions applied to you when it was in force.

You may make as many PPI compensation claims as you want & any money you receive will be yours to spend as you see fit. Neither the Official Receiver nor the creditors included in your DRO will have any claim to it."

However, some contributers to this site say that the money wouldn't come to me and would be put towards the debt.

So I'm confused?

I would really appreciate some advice and clarity with this.

Many thanks in advance!!!

Hello Adam,

I'm a debt advisor at CCCS and have just come across your post.

If you were still within the 12 month period your DRO would be cancelled if you successfully claimed back PPI. As you have finished the 12 month moratorium period of your DRO then you are fine to claim back PPI. Any money you receive back from this would be yours to keep.

Good luck with your claim.

misteradam2005

Thank you CCCS_Mat!
That is great news!!!

Gimpsdad

I wonder why that asset is the Official Receivers forever if you go BR, but seems not to be if a DRO is used instead?

Very strange, seemingly muddled thinking by the Insolvency Service. This is direct from the IS...

"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."

debt_doctor

Hi,

It is because of a fundamental difference between bankruptcy and DROs.
In BR, assets vest in the trustee, which means the assets and their control passes to the trustee, including any claims or potential claims for PPI, damages, tribunal claims and others.
In DROs assets DO NOT vest in the trustee. There is no mechanism for the realisation or collection of any assets. If the asset limit of someone within the moratorium period rises above £300, then the DRO is revoked, including if any claim comes in to payment during that time. Even so, none of that money could be claimed.

DD

LittleMissLou

Hi everyone, I know this is an old thread but I'm having some problems accessing my PPI claim money through the Royal Bank of Scotland (RBS) and this seemed like the most relevant thread. I was granted a Debt Relief Order (DRO) in November 2010. My moratorium period ended in November 2011 and all debts were discharged. I found out through talking to a friend a few months back that I had probably been mis-sold PPI. So I made a claim against RBS (one of the creditors in my DRO). I had not banked with them since my accounts were closed (as to my knowledge) once the DRO was approved. I made two PPI claims and both were accepted by RBS. They agreed to pay out £800. As I thought the accounts were closed I'd presumed I would receive a cheque. Today I received a text from RBS advising me that they were pleased to tell me that they'd paid my PPI claim money on to my credit card (the one that as to my knowledge had been closed in 2010 and all debts written off with the DRO). I called RBS PPI claims department who told me it was standard procedure to pay the money in to "open" accounts and that there was nothing further they could do. They told me to call card services at Natwest, who also told me that as my account is active and in "arrears" I have no way of getting the money back from them. I have not received correspondence regarding this account or had access to it since it was frozen in 2010, and so it is certainly not "active". This to me seems illegal. They are technically stealing my claim money and/or attempting to recover dept that should have been written off with the DRO. I've contacted Citizens Advice and the Financial Ombudsman (by phone) today and both said as it was a legal dispute there is nothing that they can do. Can anyone help?