PPI claims after death and with debt

A dear friend of mine passed away recently and I am her executor. When she died, she had been trying to sort out reclaiming PPI for her mother, who had also passed away nearly four years ago. As my friend would have been the beneficiary of the claims (she inherited everything from her mother), her estate is now due the payouts so I have been finalising the claims.

However, now revised paperwork with these offers have started to come through, but so far it has all been taken by debtors in relation to her mother's estate (she had been declared insolvent over a decade ago and had had her house sold, etc to cover it). As far as we knew, this debt was long gone.

Is it a correct that they can take the PPI funds for a bankruptcy debt from so long ago and for someone long since passed along with her inheritor? It's just very confusing and seems like a lot of hard work put in by my friend before she passed and now by me for money to be taken away anyway. It's even more infuriating as my friend also left debts and her only asset was a property where we're tied up in another issue (worth another post that one!) so can't be sold so I've both lost a friend and am now thousands out of pocket.

Please help!

Comments

  • How would the PPI claims know about the insolvency?
  • dunstonh
    dunstonh Posts: 116,252 Forumite
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    Is it a correct that they can take the PPI funds for a bankruptcy debt from so long ago and for someone long since passed along with her inheritor?

    As it is a bankruptcy, she was never going to get this money even when alive.  PPI redress relating to payments made prior to bankruptcy belongs to the bankruptcy estate and should be paid to the Official receiver for distribution to unpaid creditors.

    It's just very confusing and seems like a lot of hard work put in by my friend before she passed and now by me for money to be taken away anyway. 

    Bankrupts are not meant to make PPI complaints. So, it was a waste of time and energy.  However, the creditors will be getting some money coming their way. So, not all bad.

     It's even more infuriating as my friend also left debts and her only asset was a property where we're tied up in another issue (worth another post that one!) so can't be sold so I've both lost a friend and am now thousands out of pocket.

    Unfortunate but the rules are hard and fast on this one.


    How would the PPI claims know about the insolvency?

    Either from their own records if they were involved with the bankruptcy or from checking the bankruptcy register (which most do before paying out)

    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.
  • Hi, thank you for confirming all of this. Being two people removed from the person who the claims were for and both being deceased, the information I did have is understandably a bit space and most has come from vague recollections of conversations with my friend and what I've found in her paperwork.

    It's a shame this wasn't clearer in some of the information as she spent so much of her last few months trying to get something reclaimed so it could help her estate when she passed.

    To the commenter asking how they'd know, yes it's on the records as I believe they have to contact the official reciever. At least, that's what had happened in one of the claims, which is why I found out about this in the first place.
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