Discharged bankrupt and PPI

[Deleted User]

You need to be posting your discussion attempts over on the Bankruptcy Board.

No point trying to debate your POV here.

dunstonh

1) The PPI payments were in the PPI-sellers possession, accumulating interest.

No. The PPI payments went towards a retail product purchase.

2) At some point the PPI-seller recognises the customer's ownership of them ( as if they had been paid into a deposit account that everyone had forgotten about ) and hands them over.

No, there is no ownership. It is a compensatory award.

3) If the customer had in the meantime become bankrupt, it means that asset was mistakenly omitted from the settlement calculation, so the clock has to be wound back to the day of the bankruptcy.

The asset did not exist until after bankruptcy. However, it originates from a pre-bankruptcy transaction.

However, I'm wondering if there is anything to stop the bankrupt customer telling the OR or their creditors, about the potential PPI claim ? They might be prepared give the customer a payment for the effort of doing the paperwork.

Not a chance.

Geoff1963

To moneyineptitude ; from your link :
"if you have already made the claim and pocketed the cash there is a good chance that the IS will at some point try and cash in the claim and therefore realise that you already have. At that point they will have the option of recovering it from you."

The PPI-refunder probably won't check too hard that you are eligible to keep the funds. The bad news will come when the Insolvency Service find out.
It is a bit like selling your neighbour's car on eBay while they are on holiday ; you might get the money, but not for long.

[Deleted User]

Geoff1963 wrote: »

To moneyineptitude ; from your link :

Not sure what point you are trying to make?

As I said, probably best trying to debate this on the Bankruptcy board:
http://forums.moneysavingexpert.com/forumdisplay.php?f=136

dunstonh

The PPI-refunder probably won't check too hard that you are eligible to keep the funds. The bad news will come when the Insolvency Service find out.

Checking the bankruptcy register before paying out is a requirement. The odd one has slipped through but keeping the money is a offence.

welshgasman

Geoff1963 wrote: »

The PPI-refunder probably won't check too hard that you are eligible to keep the funds..

At the bank I worked for it was standard practice on all registers.

[Deleted User]

welshgasman wrote: »

At the bank I worked for it was standard practice on all registers.

It's legally required practice, not simply "standard" practice.

Even in the unlikely event of the Bank paying out, it's an offence for the Bankrupt to attempt to keep the money.

Regardless, this thread has rather run it's course.