PPI claim, guarantor loans and bankruptcy

Couzens

Hi guys, I would be really grateful if anyone could give me a little advice on a situation that has happened to my husband recently. I’ll try and keep it brief. He went bankrupt in 2009 but has now been realised. A while ago a PPI compensation company contacted my husband offering to investigate a claim for him. He agreed. He won a couple of awards that were paid to him but they were still investigating a larger award from The Black Horse. A lot of time went past, pandemic etc and my husband didn’t expect to hear from them again and we moved house too. Recently the company contacted my husband explaining he had won all 5 awards and the total amount payable to him was £28,000. They advised him that their fee was £6009 and that he should inform The Black Horse of his change of address and await the cheques. There were five loans all put together as one big consolidation loan. My husband had his Mum as guarantor for the loan and it was held against her house. As far as my knowledge goes they were both named on the loan. The money came from her bank and my husband paid her. When my husband contacted The Black Horse they informed him that the had passed on the award to his insolvency. I should say here that the loans from the black horse were not included in the bankruptcy and the loan was paid back in full. My question is, is my husbands Mum entitled to any of the award? And should some have been paid to her as she had been miss sold too? I know it’s a long shot but didn’t know if it was worth investigating. Any advice would be gratefully recieved.

[Deleted User]

No. The redress will go to the OR.

Did he tell the claims company he was bankrupt? Bankrupts aren't eligible to make PPI complaints and should never use a company if they do as they are simply left with a large fee to pay.

dunstonh

He went bankrupt in 2009 but has now been realised. 

This is the key bit of information that overrides everything.   A PPI redress payment for PPI premiums pad prior to bankruptcy are a pre-bankruptcy asset and belong to the estate for distribution to the creditors that were left unpaid from the bankruptcy.

A while ago a PPI compensation company contacted my husband offering to investigate a claim for him. He agreed.

Did they check if he arrears, defaults, amounts written off or was a bankrupt?    They should not accept him as a customer if they did.  Technically they can but they would tell him that he would be liable for their bill whilst not seeing any money himself.  That would see most people use their common sense and not proceed.

He won a couple of awards that were paid to him but they were still investigating a larger award from The Black Horse. 

Has he notified the official receiver that he received those payments?   It is unlawful for him to retain them.    The OR usually finds out about 18-24 months later asking for the money.

I should say here that the loans from the black horse were not included in the bankruptcy and the loan was paid back in full.

It doesnt matter.   Its a pre-bankruptcy asset.

My question is, is my husbands Mum entitled to any of the award?

No.  With the exception of cases where the redress paid to the OR exceeds the amount of the debt on bankruptcy.  The OR will refund any excess after the creditors and bills have been paid (rarely happens as the redress is rarely enough to clear everything).

Most loans are not joint.   So, are you sure it was?

Has he still got the money from the other refund payments so he can pay the OR on those?