PPI and previous bankruptcy dilemma

theepw

Hi everyone,

Would be incredibly grateful for your advice regarding a really tricky situation that I am in and one in which I feel I might and should have a case against.

Unfortunately, I went through a difficult time many years ago, and was previously declared bankrupt (for ~£15,000) back in April 2009. I still have copies of all the paper work relating to this and the Court Judgements. This bankruptcy only lasted for 6 months, as I was discharged by the Official Receiver in October 2009, ~ 10 years ago now.

In April of this year (2019), I made a PPI claim (using this website’s handy online tool) and I have subsequently found out this morning that a well-known Bank which I used to get loans and car finance from (many years ago ~15 years ago) did indeed mis-sell me PPI.

I had a letter through the post today stating that I have been rewarded > £3,000 due to previous mis-sold PPI insurance, which is obviously a very significant amount of money (and in principle, money that I am owed).

However, in the Bank’s correspondence to me, in the ‘Payment’ section of the letter they sent, they have stated, and I quote:

‘My review shows your financial affairs are being managed by an insolvency practitioner or IVA supervisor. Therefore, as the offered redress payment will normally be an asset of your arrangement; I have made it directly to them’.

I was incredibly shocked when I read this, as my bankruptcy was over 10 years ago now, only short lived (6 months) and I am NOT currently being managed by an insolvency practitioner. In fact, I have bought my own car and have a mortgage on my own house (my financial situation is significantly better now).
I feel it to be incredibly unfair that I am still being penalised (10 years later) for my previous bankruptcy; especially as I have a letter from 2009 stating that I had been ‘released from my trustee by the Secretary of State for Business etc..’.

Does anyone know if they can do this? Or why I am not entitled to that money myself? It appears that they must have sent a check for almost £3,500 directly to this ‘insolvency practitioner or IVA supervisor’, which is no longer even relevant to me anymore! They seem to be stating in the letter that their records show my financial affairs are being managed by an insolvency practitioner, which is not true.

I would be so grateful for advice and your opinions on if I have a case and where I should go from here?

[Deleted User]

Any pre-bankruptcy assets goes to the OR.

You're not entitled to it because bankruptcy is a line in the sand where neither party can pursue the other.

theepw

Deleted_User wrote: »

Any pre-bankruptcy assets goes to the OR.

You're not entitled to it because bankruptcy is a line in the sand where neither party can pursue the other.

Thanks for your reply.

Can you explain what you mean by, bankruptcy being a line in the sand where neither party can pursue the other?

Are you essentially saying that I am not entitled to that money IF I was mis-sold PPI PRIOR to the bankruptcy?

That principle still applies 10 years down the line?

[Deleted User]

That's right.

theepw

Deleted_User wrote: »

That's right.

The important thing I have to emphasise is that the claim for PPI had nothing to do with the loans or car finance I had with that particular bank though.

The Bank in question were never involved in my bankruptcy (it was related to different financial matters). Does that not change the situation?

[Deleted User]

theepw wrote: »

I would be so grateful for advice and your opinions on if I have a case and where I should go from here?

You have no "case" and nowhere to go.

You had no right to make a PPI complaint in the first place.

PPI redress is a pre-bankruptcy asset which belongs to the Official Receiver for redistribution to your former creditors. It matters not a jot how long ago your bankruptcy was or if the Bank in question was one of your creditors..
Only in the unlikely event that you purchased PPI AFTER your bankruptcy would you be able to make a valid complaint.

[Deleted User]

theepw wrote: »

That principle still applies 10 years down the line?

Forever and ever...

Nasqueron

You're also very lucky that the bank did check the record and pay the money to the OR, you could well have faced prosecution for trying to profit from pre-bankruptcy assets

[Deleted User]

Nasqueron wrote: »

You could well have faced prosecution for trying to profit from pre-bankruptcy assets

Never heard of any prosecutions, but the OP could certainly have ended up being billed by the OR at a later stage. Failure to pay up could indeed end with (another) CCJ though...

-taff

theepw wrote: »

The Bank in question were never involved in my bankruptcy (it was related to different financial matters). Does that not change the situation?

No.
You are not permitted to profit from pre-bankruptcy assets. PPI is a pre-bankruptcy asset. You also have no right to complain, that rests with the OR.


Read this, it should make it clear
https://forums.moneysavingexpert.com/discussion/3766585/ppi-claims-after-bankruptcy

[Deleted User]

-taff wrote: »

. PPI is a pre-bankruptcy asset. You also have no right to complain, that rests with the OR.

I think the Op has already got the message:
https://forums.moneysavingexpert.com/discussion/comment/75896420#Comment_75896420