PPI & Bankruptcy

lowie

Firstly I apologise if I confuse anyone with this but I've been passed from pillar to post this morning and the CAB folks on the phone were next to useless as I cannot explain myself properly.

I claimed a PPI refund through a PPI recovery company (I know, I know but I knew if I did it myself I would give up halfway through). What I wasn't advised is that as I was made bankrupt, and even though I have since been discharged, the CC company have the right to keep the money I was owed. Lovely!!! The company I claimed through passed my claim off to their law firm who have since charged me £200+ for the benefit of their hard work. I spoke to the people at the insolvency service who said I should speak to the CAB who in turn told me to visit their website which is useless to my query.

My question is: If I do not receive the money back in a form I can actually use are the PPI firms still allowed to charge me? I don't work so having to pay out over £200 for nothing is not something I can easily do. If so, well aren't I an idiot and aren't these PPI firms bordering on daylight robbery (they always are but charging me to claim money I won't ever see really is).

dunstonh

What I wasn't advised is that as I was made bankrupt, and even though I have since been discharged, the CC company have the right to keep the money I was owed. Lovely!!!

Although very wrong.

If I do not receive the money back in a form I can actually use are the PPI firms still allowed to charge me?

You have no legal right to the money if the PPI redress relates to PPI paid prior to discharge. The lender should check for bankruptcy before releasing it. They will then pay it to the official receiver to distribute to the unpaid creditors. In the rare cases where it is paid to you, you have legal requirement to let the OR know that you have received the money.

The claims company should not take on your case if they know you are a discharge bankrupt. You should complain to them that they should not have taken on this case and request a refunds.

The company I claimed through passed my claim off to their law firm who have since charged me £200+ for the benefit of their hard work.

Most claims companies have no link whatsoever with legal companies and do not employ legal staff. The PPi complaints process involves nobody of legal training. However, it is a common scam for dodgy claims companies to pretend they do and indeed, there are examples of advance fee fraud that use that reason in their scam.

If so, well aren't I an idiot and aren't these PPI firms bordering on daylight robbery (they always are but charging me to claim money I won't ever see really is).

One bitten, twice shy. Not so in your case I'm afraid. You really must take more care in future.

haras_nosirrah

did you tell the claims firm you have been bankrupt in the past?

If so they should have refused the case and you may have a complaint against them

if you never told them this information then they weren't to know you wouldn't get the money

lowie

dunstonh wrote: »

Most claims companies have no link whatsoever with legal companies and do not employ legal staff. The PPi complaints process involves nobody of legal training. However, it is a common scam for dodgy claims companies to pretend they do and indeed, there are examples of advance fee fraud that use that reason in their scam.

It was the way I explained it. It was a third party law firm.

I also made sure they were made aware that I had previously been made bankrupt. I was not going to hide that information from them. I advised them of when I was made bankrupt & when I was discharged.

I started this claim 2 years ago is there any chance I can get my money back? I haven't a clue about how to go about getting a refund. Is there any letter on this site that could help me?

[Deleted User]

lowie wrote: »

Is there any letter on this site that could help me?

There is no such template letter. You should probably continue to pursue the Citizen's Advice Bureau if you need help letter writing.

Do now realise that Bankruptcy is meant to draw a line under your previous money mis-management. None of your old creditors will now chase you for monies you owe them, but it's a two-way street and so in return you should not attempt to chase them for any "claim" which dates from prior to your bankruptcy.

I'm afraid you've learned the hard way that you basically can't have your cake and eat it.

lowie wrote: »

I also made sure they were made aware that I had previously been made bankrupt.

I do hope you did this in writing? If you simply told someone verbally, you now have no proof of this...

lowie

Moneyineptitude wrote: »

Do now realise that Bankruptcy is meant to draw a line under your previous money mis-management. None of your old creditors will now chase you for monies you owe them, but it's a two-way street and so in return you should not attempt to chase them for any "claim" which dates from prior to your bankruptcy.

I'm afraid you've learned the hard way that you basically can't have your cake and eat it.

I wish I knew. I am actually embarrassed I did this. There is no way to convey how stupid I feel.

I did have a man from the PPI company come to my house to fill some forms in. I am sure it would have been part of his questionnaire.

[Deleted User]

lowie wrote: »

I am sure it would have been part of his questionnaire.

You need to be more than "sure'. I suppose you are going to say that you didn't keep any copies of forms you filled in?

Nasqueron

Should point out that some PPI firms will take on cases even where there is a chance that you will not see any of the redress and put it in the terms and conditions that you sign when they represent you - perhaps they should say up front but if you signed Ts & Cs saying that you understood that you would still get a bill even if the money was offset, the PPI firm will have their backs covered.

As an example from "the claims guys":

Compensation may be used by a Company to reduce any outstanding debt You owe them and You understand that TCG’s Fee of 30% + VAT will be payable to TCG based on the total amount of calculated Compensation even if the Company does not pay the whole sum of the Compensation to You in cash. TCG will invoice You for the Fee which will become immediately due and payable by You to TCG

Insider101

lowie wrote: »

It was the way I explained it. It was a third party law firm.

I also made sure they were made aware that I had previously been made bankrupt. I was not going to hide that information from them. I advised them of when I was made bankrupt & when I was discharged.

I started this claim 2 years ago is there any chance I can get my money back? I haven't a clue about how to go about getting a refund. Is there any letter on this site that could help me?

There is no way you are going to get the money back from the credit card company I am afraid. They are lawfully entitled to set-off the money.

As regards the company, to clarify was it a CMC or a solicitor? Either way you should slap in a complaint to them on the grounds that you were never advised that if you had been declared bankrupt you would not receive the funds. This is well known across PPI nowadays and is a clear breach of their duty of care. Advise them that if you do not get the response you want then you will take your complaint to the legal ombudsman.

lowie

Moneyineptitude wrote: »

You need to be more than "sure'. I suppose you are going to say that you didn't keep any copies of forms you filled in?

I'll just give you some salt instead as I get the feeling that no matter what I say you will find I way to compound my misery.

[Deleted User]

lowie wrote: »

I'll just give you some salt instead as I get the feeling that no matter what I say you will find I way to compound my misery.

I take it that means you have no proof that you told them you were a bankrupt prior to engaging the claims company?

Regardless, you should still complain.