Ppi error lead to bankruptcy-need advice

Catherine_molloy

Mr partner had a £9.000 barclayard with ppi on and made a claim 4 years ago. He received a letter confirming he was mis-sold this from Barclays and that he would receive it within 12 weeks less the amount outstanding on the credit card. He received over £7.000 and thought it was finished. A couple of months later he started being chased by Lowell, Barclays dept agents because Barclays never cleared the credit card balance as the had informed us on writing. This lead to him being declared bankrupt and costing us over £50,000 as they were trying to take our house. I have complained to the Ombudsman with no luck any advice on what else I could do?

McKneff

He must have got some paperwork with the refund

They dont normally clear a credit. I believe that only the arrears , if any would be cleared

More information is needed before anyone can help

Catherine_molloy

He received a letter from Barclays before refund stating Barclays always clear debt before refunding ppi. On receiving the refund he signed that he was receiving £7,000 to his account no other paperwork, nothing saying they hadn't cleared the balance.

k3lvc

Catherine_molloy wrote: »

He received a letter from Barclays before refund stating Barclays always clear debt before refunding ppi. On receiving the refund he signed that he was receiving £7,000 to his account no other paperwork, nothing saying they hadn't cleared the balance.

And he didn't check ? Presumably on the original offer letter it quoted £7k and then £7k lands in his account - at this point a simple check should have been made


What is the actual sequence of events and where has the £7k gone now ?

societys_child

. . . stating Barclays always clear debt before refunding ppi

There is a difference between debt (arrears) and outstanding balance, the outstanding balance was still owed but not in arrears and should have been paid as normal.

any advice on what else I could do?

It was still owed and he should have repaid it . Did he not think he'd been refunded far too much ppi?

Catherine_molloy

No he didn't check as it had been estimated at £17,000by Barclays over the phone, daft I know bur the wording is will clear outstanding balance first.

IAmWales

Was the debt already with Lowells, and if not was he not getting monthly statements from Barclaycard?

How did £9K become £50K?

Nearlyold

There are some things in your account of what happened that don't quite make sense.

1) What happened to the £7,000 paid to your partner, had he spent it all before he got his next normal monthly statement from Barclaycard which would have arrived within a maximum of 31 days.

2) Surely Barclaycard must have contacted your partner with regard to missed payments on the card before instructing debt collectors. Its normal to get a reminder on missing the very first monthly payment.

3) If the £9,000 debt on the card was manageable before the PPI refund was received, what happened afterwards that made the monthly payments (approx £450pm) unmanageable

Don't mean to be harsh but as you have already gone to the Ombudsman with your complaint and failed, I really can't see you persuading the Courts or indeed any other body that receiving £7,000 made you go bankrupt.

McKneff

As above, surely you he would have received statement with the outstanding balance on it every month, and non payments would then trigger debt letters.....

And also as above, how did it get to 50K. Maybe you arent getting all the information from your partners.

Friend of mines OH was hiding statements and letters etc. and ended up having to sell their house to clear debt Could this have been happening,

Catherine_molloy

No it was court fee and the legal costs of the bankruptcy company that took it to 50k. There was no credit card bills to be paid as the balance was supposed to be cleared with Barclays share of the ppi, Barclays had told us before ppi payment. Yes the money he got £7k was spent over three months. Over that 3 "months Barclays sold the debt to Lowell whilst we heard nothing. We still were not aware Barclays hadn't taken there money first as they had said they would until he received a statutory demand for bankruptcy.

Nearlyold

Did you not receive any statements or payment reminders?