PPI, bankruptcy and being charged!

MandyT1970

Hi there,
I'm in a situation and have been stupid I think. I was approached months ago by a PPI company and thinking I had nothing to lose, signed the forms and agreed to go with it. I then read somewhere that if PPI relates to a time one has been bankrupt then you aren't eligible to receive any money. Shortly after this I received some forms from the PPI company that needed completing (asking what makes me believe I was mis-sold the PPI etc). I didn't get around to filling them out, and time passed and I thought it was over.
A few weeks ago I received a letter from the Bank of Scotland apologising for the mis-selling of PPI and saying I was entitled to £1250. It also said this had been given to the official receiver as I was bankrupt at the time. Now I am getting phone calls from the PPI wanting their share - have I a leg to stand on if I didn't get the money? The bankruptcy is from approximately 23 years ago. I don't know what to do!

SonOf

It is correct that you should not get the PPI payment.

However, the CMC should also have checked with you if you had arrears, defaults, amounts written off as an agreed settlement or had been bankrupt.

From what you have said, this appears not to have happened. So, you may have grounds to complain. You should write a complaint to the CMC and tell them that as a bankrupt they should have known that you would not be entitled to the redress and should have told you that before offering their services.

Then wait until the complaint outcome and if they refuse to back down, you will then have access to the FOS. The FOS will consider the FCA "treating customers fairly" guidelines and there is a good possibility that the FOS will tell the CMC not to charge as they failed to carry out the checks first.

MandyT1970

Thanks for this - CMC? FOS? FCA? Can you please let me know what these mean - thanks.

brettcta

Claims management company
Financial Ombudsman Service
Financial Conduct Authority

How have the bank got the details of the CMC if you didn’t fill in the paperwork? They’d have needed to have a signed letter of authority in order to correspond with them.