PPI Claim Awarded but Not Paid by Nationwide Building Society

PhilV7c

Thoughts please. I went bankrupt in 2008 but discharged in 2012. I had a loan with Nationwide Building Society prior to my bankruptcy.
This month, Nationwide agreed that my PPI claim was valid to the tune of £5,000 - however, the payment was not paid to me. They said it is to cover part of the arrears that arose from me going bust in 2008.
My belief is that by going bankrupt, it cleared the outstanding repayments owed to Nationwide since the debt ceased to exist on the day of bankruptcy. Therefore, there was no outstanding balance that required my agreed £5,000 PPI payment to cover.
I'd be grateful for any advice as to the validity of the argument put forward by the Nationwide.
Many thanks in anticipation.

[Deleted User]

They are correct to keep it. You don't get anything back post bankruptcy.

StopIt

PhilV7c wrote: »

Thoughts please. I went bankrupt in 2008 but discharged in 2012. I had a loan with Nationwide Building Society prior to my bankruptcy.
This month, Nationwide agreed that my PPI claim was valid to the tune of £5,000 - however, the payment was not paid to me. They said it is to cover part of the arrears that arose from me going bust in 2008.
My belief is that by going bankrupt, it cleared the outstanding repayments owed to Nationwide since the debt ceased to exist on the day of bankruptcy. Therefore, there was no outstanding balance that required my agreed £5,000 PPI payment to cover.
I'd be grateful for any advice as to the validity of the argument put forward by the Nationwide.
Many thanks in anticipation.

Not quite correct.


You are no longer liable for any of the debts in the bankruptcy, but in the process, lose all claim to assets, including anything to do with the debts.


So yes, you no longer had to service the debts, but as the debts are no longer yours legally speaking, the PPI claim is no longer yours either.

dunstonh

My belief is that by going bankrupt, it cleared the outstanding repayments owed to Nationwide since the debt ceased to exist on the day of bankruptcy.

your belief is wrong. Bankruptcy is a line in the sand that goes for liabilities and for assets. PPI redress is classed as a pre-bankruptcy asset. So, your creditors that you failed to pay get first call on that money. You would only see the money if the Official receiver confirms that all creditors were repaid in full for the original debt owed.

Nationwide have followed the law for England & Wales correctly.

Also, it is a bit of a cheek on your part to expect a refund for something that you effectively never paid. Thankfully, the rules follow logic on this occassion.

[Deleted User]

PhilV7c wrote: »

I went bankrupt in 2008

This is asked so often it's a sticky on the bankruptcy board. You actually had no right even to make a PPI complaint, that right belongs to the Official Receiver.
Read in detail here;
https://forums.moneysavingexpert.com/discussion/3766585

PhilV7c wrote: »

I'd be grateful for any advice as to the validity of the argument put forward by the Nationwide.

It's not an "argument". The redress does not belong to you.

Sorry.

PhilV7c

Thanks to all for the advice. I received a letter this morning from the Official Receiver who states that ALL funds from a PPI claim must go to them to distribute among the creditors that existed at the time of my bankruptcy.
In my case, Nationwide should send the £5,000 payment directly to the OR and not keep it to pay off some of the arrears.
Good to get my question settled officially.

societys_child

The OR would say that, however the bank may think differently.

[Deleted User]

PhilV7c wrote: »

I received a letter this morning from the Official Receiver who states that ALL funds from a PPI claim must go to them to distribute among the creditors that existed at the time of my bankruptcy.

Exactly. This is why your "complaint" was guaranteed to fail. Only the Official Receiver
can complain about PPI you had

As a bankrupt, you had no right to complain in the first place.

Sorry.