Bank charge refund and discharged bankrupt

mrsg2b

This morning I received a letter from RBS concerning an account that was closed in 2007 following my sequestian, with details of a refund Im entitled to due to bank charges. This has come out of the blue, without any claim on my part.
The letter says because Ive been made bankrupt (even though I was discharged 2 years ago) this refund will be offset against any outstanding debt on the account, and it will be dealt with between Insolvency Practitioner and the bank.
I cannot ever remember having a debt on the account, and if I did it would be less then the refund amount, as I held no overdraft on the account.

Has anyone had anything similar? If there is a debt, even though Im discharged now, is that debt still classed as outstanding? I assumed that once discharged all debts are effectively clear and any financial gains could not be used for those previous debts?

tigerfeet2006

https://forums.moneysavingexpert.com/discussion/3461629

PippaGirl_2

mrsg2b, you need to forward that letter to your trustee, its up to them if they want to claim it as the money belongs to them

mrsg2b

Thanks for the link but after reading through all 9 pages none of the advice relates to bank charges (incurred from missed direct debits etc). I never had any PPI products, and I have made no claims, the RBS have contacted me.

DevCoder

As Pippagirl says, forward the letter to your trustee, if they have no interest then they'll tell you so.

mrsg2b

I will be very annoyed if they decide to keep it. These bank charges were paid every time I incurred them, so why should I have to give up any refund? Not like this is a debt that was covered by Bankruptcy, I held no credit with the bank,it was a simple cash account!

PippaGirl_2

But the money is an asset of your estate mrsg2b, and the OR takes control of your estate to distribute towards your creditors to pay what you can towards your debt. So as this refund was due to you it becomes part of your estate and so your OR must be told about it and they can claim it to pay off your debts and fees.

tigerfeet2006

Sorry, it was gone 10pm here when I was posting and i had had a long, knackering day and I thought I had posted an explanation plus the link.

The lovely Pippa explained it beautifully.