bankruptcy and ppi help

matthew79_2

Hi, I was made personally bankrupt back in 2006 due to a company that i ran at the time running into difficulties, the bankruptcy was a pretty straight forward one and i was discharged in 2007.
I recently made a claim for mis sold ppi through a company. When i applied i explained that i had been made bankrupt and they said that that was fine and shouldnt matter, i explained that i was trying to claim back ppi on a mortgage and loans that were paid off before i was made bankrupt however i couldnt remember which companies were the ones that had been settled before the bankruptcy or were included in the bankruptcy. The guy on the phone told me to list every company that i could think of that id ever had a loan from and that they would contact them and see what they could do.
I have now been sent a bill for a fairly substantial amount of money explaining that they have been successful in claiming back my ppi from three of the companies that were included in the bankruptcy and that the money that i have claimed has been taken off the money that they were owed from the bankruptcy. I now owe said company thirty percent of the amount reclaimed due to the claim being a success although i havent received a penny and never set out to claim from any of the companies that were in my bankruptcy.
Anybody got any suggestions, i cannot prove the conversation i had with the guy on the phone and now seem to be in a bit of a situation.
If i dont accept the offers made by the banks will i still owe the money?
Also when your made bankrupt is the dept not wiped, i thought that was the point of bankruptcy. So can the bank in question just accept that they mis sold me the ppi but still keep it, im not trying to get any money from any bank that was included in the bankruptcy, just dont want to pay fees when ive not got anything. Matty.

[Deleted User]

Tough luck, mate, you've learned the hard way not to use Claims Companies and that you stand to gain nothing from PPI re-claiming when you are a Bankrupt.

Any redress you might have won from lenders who weren't involved in your bankruptcy would have been classed as assets which the Official Receiver would have taken.


As the company has claimed from lenders who were involved in your bankruptcy (and you have to take responsibility for that, you told them who to contact) they'll just use it towards your unpaid debt which was only written off originally because you couldn't pay.

There is really nothing you can do except pay this company and rue the day you ever made contact with them.

Sorry.

matthew79_2

Thanks for the reply. Im sure that any assets received after discharge from bankruptcy are legally yours to keep, and shouldnt the debt owed to the bank have been written off in the bankruptcy or do they still keep the account open so to speak?

[Deleted User]

matthew79 wrote: »

Im sure that any assets received after discharge from bankruptcy are legally yours to keep, and shouldnt the debt owed to the bank have been written off in the bankruptcy or do they still keep the account open so to speak?

You're in trouble, mate. Looks like another visit to the CAB is in order.
It would have been wise to research thisBEFORE embarking on your folly.

matthew79_2

Yeah I know, but as said earlier when I first made the ppi claim I was only trying to claim for loans paid off before the bankruptcy but couldn't remember which loans were with which banks so the guy on the phone said that they would sort them out if I gave them a list of all loans I'd ever had. I even sent them a copy of my discharge certificate. In hindsight they don't care as long as they get their money.

[Deleted User]

matthew79 wrote: »

In hindsight they don't care as long as they get their money.

Correct.
Here's what it says in the MSE advice regarding debt history
"It's worth being aware that if you were mis-sold a policy before getting into debt problems and you still owe the lender, either now or from a debt in the past, it’s likely to use the cash towards your debt. It can do this without your permission....
An extra word of warning: if you’ve debt problems there’s usually no point using a claims handler. If your arrears are larger than your potential payout you’re unlikely to get the money, but you’ll still have to pay the claims handler fee."

amersall

I believe that the claims handler should not have taken this claim on in the ops circumstances.
Give the MOJ a call and see what they say.
http://www.justice.gov.uk/claims-regulation

dunstonh

Im sure that any assets received after discharge from bankruptcy are legally yours to keep

They are not. PPI refunds are classed as pre-bankruptcy assets. This is confirmed on the Government Bankruptcy website.

and shouldnt the debt owed to the bank have been written off in the bankruptcy or do they still keep the account open so to speak?

They can no longer come after you for any money you receive on post bankruptcy assets. However, they are entitled to receive money on pre-bankruptcy assets.

http://www.bis.gov.uk/insolvency/news/news-stories/2012/Apr/PPI-mis-selling-claims-and-bankruptcy

So, in your case, the only money you would be entitled to is if your complaint was successful and the premiums were paid after you were discharged.

magpiecottage

Please NAME AND SHAME the scumbags.

That will allow me to provide further guidance.

matthew79_2

magpiecottage wrote: »

Please NAME AND SHAME the scumbags.

That will allow me to provide further guidance.

Direct redress is the company, I replied via text to an advert on the radio and one of their guys rang me back. I explained that I might of had ppi on a mortgage that I settled in 2006 and they took my details and also asked if I had any other loans etc too which I explained about the bankruptcy. The guy on the phone told me that although I had the bankruptcy that I would still be due a refund and that it was no win no fee, all true but massively misleading and he didn't mention anything about them keeping the money yet still having to pay the fees. He sent some forms out and asked me to send a copy of my discharge in with them, so they knew all about the bankruptcy from the start. Do you think I might have a case against them or does it look like I'll probably have too cough up, thanks matty.

magpiecottage

Okay

Send the following to

daniel@directredress.com

copy to consumer@claimsregulation.gov.uk

Your reference [reference number]

Dear Sir

FORMAL COMPLAINT OF MISSELLING AGAINST DIRECT REDRESS LIMITED

When I first contacted your company, I explained to your employee that I had been made bankrupt after taking out these policies and was told it "shouldn't matter".

It is now clear that I will never see any of the redress awarded and your company, which boasts on your website that you are "experts in redress" knew, or ought to have known that.

You say "Our service is tailored to deliver solutions not problems." but you have delivered only demands for payment out of funds which you knew all along that I would never receive.

You say, "Everything we do is driven by a dynamic attitude of relentless determination to ensure that we meet, and wherever possible, exceed our client's expectations on each and every occasion."

You have fallen woefully short of the minimum short of my reasonable expectations.

Had you made the true ramifications of you pursuing a complaint on behalf of a person in my position I would never have asked you to do so because it would clearly be to my significant disadvantage to do so.

Therefore, I believe the only way in which you can resolve this matter satisfactory is to waive your fee and trust you will promptly provide written confirmation that this has been done.

I am also forwarding a copy of this email to your regulator.