PPI Co taking legal action for fees despite no PPI recieved due to an old bankruptcy

jennsandrasonson

A standard PPI call came though, explained there was a bankruptcy 7 years ago (now discharged) they said they would attempt a claim. Documents came though, they asked if there was any debt, answered no as the bankruptcy ended. The bank have confirmed the funds will be awarded back to the bank however the PPI co have said we are still responsible for paying their fees, particularly as we signed that there was no debt with said bank. Could someone help here please, I don’t believe we should be paying fees for funds we will not be receiving.

brettcta

You’d need to raise a complaint and try to argue that you told them on the original call that you were previously bankrupt.
Hopefully they’ll have that recording (though good luck getting it if they have without aggro) but if they don’t, they’ll take you to court with paperwork that you’ve signed which states you’ve never had any debts. 

It all centres on whether or not they have a recording of the original call where you told them you’d been bankrupt previously.

jennsandrasonson

Thankyou. I thought all the PPI was no win no fee, we definitely did not win 

[Deleted User]

You won because your complaint was upheld - and that's all the PPI company were hoping for.  They have no interest in whether the money needed to be used to settle outstanding debts.

See what the recording returns, though I doubt they will still have it - if they ever did.

Thrugelmir

jennsandrasonson said:

Thankyou. I thought all the PPI was no win no fee, we definitely did not win 

You won. You had no entitlement to the money though. You left a debt with the bank in the process of going bankrupt. 

dunstonh

If the CMC knew you were a bankrupt they should have stopped straight away.  It is known that bankrupts do not get the money. So, this was entirely predictable.    So, you should immediately raise a complaint on the basis that they were aware of the situation and failed to act ethically and honestly and have not treated you fairly.  

Thankyou. I thought all the PPI was no win no fee, we definitely did not win 

You did win.  Your creditors that were left unpaid when you went bankrupt will be getting a small windfall.

Effectively you have been missold PPI and you have now been missold PPI reclaiming.    You really need to take more care going forward