PPI after 6 year discharge

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Chorlton1974
Chorlton1974 Posts: 7 Forumite
edited 14 August 2018 at 11:53AM in Reclaim PPI & other insurance
Hi sorry if posted elsewhere, I can't see it if it has.


I went through the bankruptcy process in 2008. discharged a year later. in 2013 I tried the PPI thing. got a small payout from Barclays, nothing huge, but still 3 figures. A friend asked if I'd applied through all of them as I'd had credit cards and store cards. said I hadn't and friend said I should reapply, which I did.


Last month I received a call from the bank. they asked me why I applied for the card, in 1998, could I remember this, that and the other. (I can't remember last week, let alone 20 years ago!). Last week, they wrote to me with an offer of just under 2k. at no stage of the conversation or during any paper work completed has bankruptcy/discharges or anything like that ever been mentioned


They have messaged me today with " thank you for returning your signed acceptance form. payment should be issued by 15 September 2018. please note if you are, have been insolvent or have outstanding debt with the group, payment may be affected". surely they would have looked into this during the process, rather than making me an offer?


Now my question is, given that the 6 years have clearly lapsed, what can any of these financial institutions actually see on your file? Can the banks, lenders etc see that you have been bankrupt in the past and subsequently discharged? there is nothing to indicate this on my credit report anymore and at no point during this PPI process have they asked this question, or for me to volunteer it. Can they see something within these credit reports that I can't? I get that I may not get any payout at all, but its confusing that Barclays paid out in 2013, and now the bank seem prepared to pay out. when Barclays paid out, nobody batted an eyelid.


I just wonder, that when you go on credit score sites like Experian/noddle etc, there is no record whatsoever anymore of any bankruptcy, that the banks can see more than you can, when it comes to looking at these records.


totally confused.com


Cheers.
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  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    edited 14 August 2018 at 11:34AM
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    PPI redress is a pre-bankruptcy asset which belongs to the Official Receiver for re-distribution to your former creditors.

    So you won't be receiving any money personally I'm afraid.

    This remains the case forever, so the date of your discharge is irrelevant.

    This question is asked so often there is a "sticky" thread at the top of the Bankruptcy Forum of this site with all the details;
    https://forums.moneysavingexpert.com/showthread.php?t=3766585
    Can the banks, lenders etc see that you have been bankrupt in the past and subsequently discharged?
    Of course they can. Bankruptcy is a serious situation that will affect your ability to get credit for years.

    Note that checking for bankruptcy is not part of the initial complaint process at the Bank. Such checks are only done prior to any redress payments being made.
  • Chorlton1974
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    Thanks for the reply and the sticky. what I still don't get is why would Barclays pay out like they did in 2013 with no questions asked and I was in the 6 year period?
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    Thanks for the reply and the sticky. what I still don't get is why would Barclays pay out like they did in 2013 with no questions asked and I was in the 6 year period?
    You were lucky if this occurred, but read the Sticky, the OR can still demand this money from you even now..
  • Chorlton1974
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    cool, thanks again for your help.
  • dunstonh
    dunstonh Posts: 116,637 Forumite
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    Thanks for the reply and the sticky. what I still don't get is why would Barclays pay out like they did in 2013 with no questions asked and I was in the 6 year period?

    There is no 6 year period.

    In the earlier days of PPI redress, the bankruptcy register was not checked. You were legally required to tell the OR you received it. Failing to do so is an offence.

    The banks have been going back on earlier PPI complaints paid out that did not check the bankruptcy register and are notifing the OR directly. However, that will take years to complete. So, don't be surprised if the OR contacts you asking for the money in the future.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Nasqueron
    Nasqueron Posts: 9,035 Forumite
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    It would be safer for you to speak to the OR now and tell them before they come after you for the money and any associated issues that will cause
  • Chorlton1974
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    this may sound daft, probably is, but if I can't see the bankruptcy on my records anymore, would they still be able to see it on theirs?


    the thing with the bank has now gone full circle. I'd have imagined they would have brought up the bankruptcy in the first instance, as Capital One did this in their first return letter. but they haven't. they even sent a statement/breakdown to the last penny and included how much income tax would be paid on it.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    if I can't see the bankruptcy on my records anymore, would they still be able to see it on theirs?
    Bankruptcy records are very thorough and are kept meticulously. After discharge from bankruptcy, your details will still be included in several public records. The insolvency register will no longer show details three months after discharge, but your credit report will normally only be updated at your own request. The Land Charges Register also contains details of your bankruptcy which you would have to request be removed.
    they even sent a statement/breakdown to the last penny and included how much income tax would be paid on it.
    If you've been discharged from bankruptcy, this doesn't change the situation. The official receiver or trustee still owns the right to claim and any money that results from a claim, unless they've agreed to transfer the right back to you.

    When you first decided to complain about a mis-sold PPI policy, you should have told the official receiver or trustee. Any attempt to make a claim for mis-selling without first checking with the official receiver or trustee is an offence.

    Basically, it's not your money.
  • Nasqueron
    Nasqueron Posts: 9,035 Forumite
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    this may sound daft, probably is, but if I can't see the bankruptcy on my records anymore, would they still be able to see it on theirs?

    They might not be able to see it on easy access records but doesn't mean it's your money. The bankruptcy is held for a long time (perhaps forever, I'm not sure) in the London Gazette - you can see the names and addresses of people going back to 2/1/1998 online and in other places. As Moneyineptitude says, either declare it to the OR while you have the cash and aren't tempted to spend it or face the consequences - unless they say otherwise, it's not your money, it's owed to the people who were affected by your bankruptcy

    https://www.thegazette.co.uk/
  • dunstonh
    dunstonh Posts: 116,637 Forumite
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    this may sound daft, probably is, but if I can't see the bankruptcy on my records anymore, would they still be able to see it on theirs?

    The credit agencies record the last 6 years. The bankruptcy register goes back far longer. I believe indefinite.
    the thing with the bank has now gone full circle. I'd have imagined they would have brought up the bankruptcy in the first instance, as Capital One did this in their first return letter. but they haven't. they even sent a statement/breakdown to the last penny and included how much income tax would be paid on it.

    Imagining it doesn't mean it would happen. This is why the banks are going back over the early ones they missed. Plus, there is always the chance for clerical errors.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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