Ppi question

amstel2

Hello

Wonder if anybody can advise on the following.

I have been discharged from Bankruptcy for over seven years. While Bankrupt I completed a three year IPA. Also two years ago I received a letter from the Official Receiver giving all the details of payments made to the IPA, fees paid, & the dividend payment made to the creditors.

A few months ago I received an un-solicited letter from a former creditor stating I had been identified as having been mis-sold PPI. I phoned them up & told them I was a discharged bankrupt & thought I was not entitled to any compensation. They where adamant that as the policy concerned was a “Payment Break” policy & i was discharged any compensation award was mine to keep. I was subsequently awarded £2000 & the cheque was paid to me.

Based on this I have contacted the other creditors & so far have had the PPI complaints upheld but they are all saying the compensation has to go to the Official Receiver “The Trustee in my bankruptcy estate”.

Now bearing in mind the only contact I have had off the O/R since discharge is the letter saying basically I no longer have a Trustee & that an IPA & dividend has been paid (how can I still have a bankruptcy estate). In addition the O/R themselves have done nothing in all these years to reclaim the PPI. I feel I have done all the work for nothing & they are making this money off my back. Also I have checked my copy of the Bankruptcy Order & there is nothing about PPI. Also in my copy of my interview with the Insolvency Service no questions where ever asked about PPI.

I am currently querying this with all the creditors & if no luck their I will contact the O/R. Surely at the very least I can keep the compensation element. As far as I can see this has nothing to do with the original debts & is not a windfall.

If the creditors or O/R won’t budge I can get free legal advice via my TU, Also does the O/R have a regulator.

Any advice appreciated. It’s really depressing when you get a letter off a creditor where page one tells you the claim is upheld & your getting all this money then page two tells you it’s going to the O/R.

Thanks

alastairq

https://forums.moneysavingexpert.com/discussion/3766585

This is the PPI stickie from above.

The PPI compensation is vested in the OR.

The information you were given is incorrect.

The Monies received by you should be forwarded to the OR.

The OR will not have a 'regulator' because the OR is the Court's Officer.

However, if one has an issue with the Conduct of an Official Receiver, or their staff, then there is a complaints procedure to follow via the Insolvency Service.

The above applies to all PPI claims relating to accounts established pre-BR.

It is apparently policy for the IS to pursue PPI claims themselves...however, they may take some time to carry this out in some cases.

But I emphasise, technically, an ex-BR does not have the 'authority' to pursue a PPI claim under such circumstances.

As a warning.....to lurkers especially....if a PPI claim is pursued via a Claims company...whilst the compensation will/must go to the Official Receiver in its entirety [to comply with the Law]....any Charges incurred from using a Claims company are solely the responsibility of the claimant to pay.
So, an ex-BR claimant may well find themselves lumbered with having to pay charges for no gain......although it is possible to have these charges revoked...but to do so takes time and effort.

patman99

This approach really does not seem fair to me.
The op has been discharged for a few years, but the OR can still grab any PPI they get back even if they waited 25 years beyond discharge.

This is one piece of legislation that really needs challenging in Court.

Cobalt77

patman99 wrote: »

This is one piece of legislation that really needs challenging in Court

Why should it be challenged? It seems quite simple and fair to me.

Think of bankruptcy as a "financial death".

Everything which has happened or existed prior to "financial death" is dead to you at the point of bankruptcy (unless the OR expressly agrees you can continue with it)

Thus, anything which is outstanding and owed to you at the point of bankruptcy is now dead and gone as far as you are concerned. It now belongs to your "financial estate" (i.e. creditors) which is overseen by the OR.

How is that unfair?

-taff

patman99 wrote: »

This is one piece of legislation that really needs challenging in Court.

Not really. Bankruptcy is drawing a line across your debts. Trying to profit from pre-bankruptcy assetts [PPI] is erasing the line and drawing it in a place where the bankrutcy didn't happen.

magpiecottage

The OP has already asked about this on this PPI thread about seven hours and been given warnings about it.

They do not like the answer they have received and are therefore trying elsewhere until they get the answer they want.

That is bad form.

patman99 wrote: »

This approach really does not seem fair to me.
The op has been discharged for a few years, but the OR can still grab any PPI they get back even if they waited 25 years beyond discharge.

The point is that the bankrupt hands over ALL rights and assets at the time to the trustee, who assumes legal ownership in return for a discharge of any financial claim against them.

If a right of action comes from the missale of PPI (or anything else) that took place before the bankruptcy, it is one of the rights handed to the trustee - even if the bankrupt was unaware of its existence at the time of the bankruptcy.

To say it is unfair on the bankrupt is to say that it is fair that they failed to pay their creditor what they owed.

patman99 wrote: »

This is one piece of legislation that really needs challenging in Court.

If you look at the post by dunstonh at 5.28 pm on 17 September 2015, you will see that it has - and the court made imposed a quite harsh sanction on the bankrupt.

amstel2

QUOTE=magpiecottage;69180576]The OP has already asked about this on this PPI thread about seven hours and been given warnings about it.

They do not like the answer they have received and are therefore trying elsewhere until they get the answer they want.

That is bad form.The point is that the bankrupt hands over ALL rights and assets at the time to the trustee, who assumes legal ownership in return for a discharge of any financial claim against them

I think magpiecottage should get their facts right before assuming.

Yes i did post my question on the PPI thread as well but this was not because i was looking for an answer i liked. It was because i was not sure which thread to post the question on. As far as i know their is no rule that says you can't post the same question on multiple threads. Thanks

amstel2

Sorry i've cocked that last response up a bit.

amstel2

What i meant to say is that i just want as much info as possible before taking this further.

I also thought that once i was discharged it was like it said on the tin that was it. That was the impression i was always given by the Insolvency Service. Even more so when i recd a letter in 2013 off the Trustee telling me the money from my completed IPA had been aportioned to pay their fees & give the creditors a final dividend payment & that said Trustee was now released from their duties.

Didn't that mean i no longer had a Trustee & now it appears it's never really over & they can leach off you for ever.

Thanks

Cobalt77

Didn't that mean i no longer had a Trustee & now it appears it's never really over & they can leach off you for ever.

Let's hypothetically say you had hidden a £100,000 painting from the OR at the time of bankruptcy. You then "did your time", got released in 2013, and subsequently sold the painting in 2015 for £100,000. Would you still argue that this was your money and didn't "belong" to the OR? Nope.

It's exactly the same here.

As others have previously said, it seems like you are in denial. This is fair enough, and it's your prerogative.

But, it doesn't alter the fact that, legally, the PPI compensation belongs to the OR. And if you don't notify the OR and subsequently get "found out", it could come back to bite you big-time!

-taff

amstel2 wrote: »

Didn't that mean i no longer had a Trustee & now it appears it's never really over & they can leach off you for ever.

They are not leeching off you forever. They control all the assets you had prior to the bankruptcy.
It's you who are attempting to leech from them.