|
|
 |
 |
FORUM |
|
> Browse and post on our forum |
|
|
|
 |
|
 |
| Author |
 Topic  |
|
|
Melanie.n
forum expert
United Kingdom
1282 Posts |
 Posted - 17 April 2012 : 10:32:35
|
Below is an extract from the Insolvency Service published 10th April 2012 - this should clear up any concerns people have re PPI
PPI MIS-SELLING GUIDELINES
Following the recent publication by the Financial Services Authority of proposed guidelines for firms that sold PPI policies and their contact with customers who may have been mis-sold a policy, but have yet to complain, the folowing information may be useful to people who become bankrupt after the sale of a PPI policy
A PPI MIS-SELLING CLAIM: A BANKRUPTCY ASSET
Following provisions of the Insolvency Act 1986, the Insolvency Service takes the view that if a PPI policy was mis-sold before the date of an individual's bankruptcy, any claim regarding the alleged mis-selling of the policy is owned by the Official Receiver or Trustee of the bankruptcy estate, NOT the individual to whom the policy was sold.
DISCHARGE FROM BANKRUPTCY DOES NOT ALTER THE POSITION
Discharge from bankruptcy does not alter the position, Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual.
CONSIDERING A PPI MIS-SELLING CLAIM: REFER TO THE OFFICIAL RECEIVER OR TRUSTEE
If a (former) bankrupt considers that a PPI policy was mis-sold, they should NOT attempt to pursue a mis-selling claim without reference to the Official Receiver or Trustee
If a claim has already been made, the Official Receiver or Trustee should be informed of the claim and the person against whom the claim is being made should be informed of the bankruptcy.
USE OF CLAIMS MANAGEMENT COMPANIES
The Insolvency Service is aware that some (former) bankrupts have used claims management companies to pursue PPI mis-selling claims for them. If these services are used after the date of the bankruptcy order, it is possible that the individual will remain responsible for all or part of the commission charged if an award is paid to the Official Receiver or Trustee. This may be because the amount of commission is challenged by the trustee or if the firm against which the award is made is a creditor in the bankruptcy and exercises a right to set-off the award against the claim in the bankruptcy. This could result is no payment being made from which the commission could be paid.
As such, care should be taken before acting in this way.
BEST COURSE OF ACTION: CONTACT THE OFFICIAL RECEIVER OR TRUSTEE
The best course of action for any individual contemplating making a PPI mis-selling claim who is or has been affected by bankruptcy is to contacty the Official Receiver or Trustee dealing with their case before proceeding further
Hope this clarifies the positon with regard to bankruptcy and PPI - Melanie
Melanie Nicholas CertDR
30+years insolvency experience - 23 of which in the Insolvency Service and the past 8 years with a number of IP firms.
If I can be of any help to you in any way or answer any queries, concerns or worries you may have, or with completing the forms for bankruptcy, please do not hesitate to get in touch -I can be contacted via the experts tab
|
|
| |
Topic |
|
|
|
| bankruptcyhelp.org.uk Forum |
© bankruptcyhelp |
 |
|
|
|
|
 |
|
|
|
|
|
PPI claims & Bankruptcy - Update from Insolvency S
