Pension compensation

NINANinja

Hi
This is a question from a friend of mine.
She was BR in 2012 & got an Early Discharge after 6 months.
She has recently made a claim against a pension broker who persuaded her to transfer her military pension to a private pension back in 1992. Due to illness and other circumstances she has just made the claim against the broker, which has now gone to the Financial Services Compensation Scheme.
My worry is that she will lose the compensation under her BR. Is this likely to happen, even though it's to do with a pension which was 'exempt' under her BR?
She wants her pension reinstating on the same terms as if she hadn't transferred it.
Thanks for your help, folks.
NINA

NINANinja

Bump
Anyone?
Thanks
N

NINANinja

Hi
Could someone please let me know the best place to find this information, as it hasn't attracted any response here?
Many thanks
Nina

debt_doctor

Hi,


I'm afraid that I believe your concerns are well founded.
When your friend went bankrupt, all rights of action belonged to the trustee, and the right to make the claim against the pension broker belongs to the OR, not your friend.
My thoughts are that the OR needs to be in formed of this claim and even if not informed, it is likely that any monies gained would be transferred to the OR by the FSCS.
Whilst I agree that the pension itself is exempt as an asset, the claim arising from it is not.
DD

debt_doctor

31.9.4 A right of action
In simple terms, a right of action (also called a ‘cause of action’ or a ‘thing in action’) is a right to claim something from somebody where, for example, that other party has been negligent or has breached a contract. It is a claim.


31.9.6 Property status of a right of action and the vesting of the action in the official receiver as trustee - bankruptcy
The Act provides that all property belonging to or vested in the bankrupt at the commencement of the bankruptcy forms the bankrupt’s estate URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part9/part1/part%201%20notes.htm#3"][COLOR=#0066cc]note 3[/COLOR][/URL. Property is defined in the Act as including ‘things in action’ (which would include rights of action) URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part9/part1/part%201%20notes.htm#4"][COLOR=#0066cc]note 4[/COLOR][/URL and the bankrupt’s estate vests in the official receiver on his/her appointment as trustee URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part9/part1/part%201%20notes.htm#5"][COLOR=#0066cc]note 5[/COLOR][/URL.


31.9.11 Formal complaints to ombudsmen
Many public and private sector organisations have an appointed ombudsman to decide complaints against themselves (within that sector).
A list of the different ombudsmen is available at the website of the British and Irish Ombudsman Association www.bioa.org.uk/.../FONT>.
Where a bankrupt is carrying on a complaint in this way, the official receiver may choose to continue the complaint if he/she believes that it has merit. In ombudsman’s cases, adverse costs are not awarded for an unsuccessful complaint and the procedure ought to be relatively straightforward to follow.
The official receiver would not continue a complaint which is personal to the bankrupt as such complaints remain vested in the bankrupt personally and do not become part of the bankruptcy estate (see paragraph 31.9.37). Most complaints will be based on a contract for services and will, therefore, vest in the official receiver, as trustee.
Recently, the most common type of ombudsman complaint has been one to the Financial Services Ombudsman for mis-selling of Payment Protection Insurance (PPI) www.financial-ombudsman.org.uk/.../FONT> (see Chapter 31.9A).


DD

NINANinja

Many thanks DD
Such a shame, but she was too ill to pursue her claim prior to BR. I feel a bit bad because I've helped her with the paperwork and the FCSC pretty much said the claim would go in her favour, now only to find that she won't get her pension 'put right'.
She's had a right go at me for telling her she had to tick the 'have you ever been declared bankrupt' box. Feels like she's been denied her proper pension twice. I sympathise, and assume that if she'd brought this claim prior to BR and the compensation money had gone into her pension, the OR would have had no claim on it?
Thanks for the reply DD.
NINA

tigerfeet2006

Please tell her that not ticking the box would have made no difference, they would do the checks anyway and have seen that she had been BR and sent it to the IS.