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The official word after consultation with Insolvency service and the FSA April 10th 2012 [B][URL="http://www.bis.gov.uk/insolvency/personal-insolvency/ppi-mis-selling-claims-and-bankruptcy"]LINK[/URL][/B]
[QUOTE][B]Payment protection insurance (PPI) mis-selling claims and bankruptcy[/B]
[B]PPI mis-selling guidelines[/B]
Following the recent publication by the [URL="http://www.fsa.gov.uk/library/policy/guidance_consultations/2012/gc1204"]Financial Services Authority of proposed guidelines [/URL]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 following information may be useful to persons who became bankrupt after the sale of a PPI policy.
[B]A PPI mis-selling claim: a bankruptcy asset[/B]
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 relating to 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. [COLOR=red]This means if ANY PPI claim from before the date of bankruptcy is invalid and would belong to the offficial receiver/trustee dealing with your case[/COLOR]
[B]Discharge from bankruptcy does not alter the position[/B]
Discharge from bankruptcy does not alter this position. Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual. [COLOR=red]despite discharge you still have NO right to PPI claims in accounts included at the date of bankruptcy[/COLOR]
[B]Considering a PPI mis-selling claim: refer to the official receiver or trustee[/B]
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
[B]Use of claims management companies[/B]
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. [COLOR=red]This has recently happened to a person who approached me recently...they used a PPI claim firm who assured them they would be indeed given PPI payout eventually..trhe company then found out about the bankruptcy order and closed the claim process leaving the appllicant reesponsible for a couple of hundred quid the company claimed in fees.[/COLOR] This may be because the amount of the 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 its claim in the bankruptcy. This could result in no payment being made from which the commission could be paid.
As such, care should be taken before acting in this way.
[B]Best course of action: contact the official receiver or trustee[/B]
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 contact the official receiver or trustee dealing with their case before proceeding further. [/QUOTE]
[QUOTE][B]Payment protection insurance (PPI) mis-selling claims and bankruptcy[/B]
[B]PPI mis-selling guidelines[/B]
Following the recent publication by the [URL="http://www.fsa.gov.uk/library/policy/guidance_consultations/2012/gc1204"]Financial Services Authority of proposed guidelines [/URL]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 following information may be useful to persons who became bankrupt after the sale of a PPI policy.
[B]A PPI mis-selling claim: a bankruptcy asset[/B]
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 relating to 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. [COLOR=red]This means if ANY PPI claim from before the date of bankruptcy is invalid and would belong to the offficial receiver/trustee dealing with your case[/COLOR]
[B]Discharge from bankruptcy does not alter the position[/B]
Discharge from bankruptcy does not alter this position. Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual. [COLOR=red]despite discharge you still have NO right to PPI claims in accounts included at the date of bankruptcy[/COLOR]
[B]Considering a PPI mis-selling claim: refer to the official receiver or trustee[/B]
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
[B]Use of claims management companies[/B]
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. [COLOR=red]This has recently happened to a person who approached me recently...they used a PPI claim firm who assured them they would be indeed given PPI payout eventually..trhe company then found out about the bankruptcy order and closed the claim process leaving the appllicant reesponsible for a couple of hundred quid the company claimed in fees.[/COLOR] This may be because the amount of the 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 its claim in the bankruptcy. This could result in no payment being made from which the commission could be paid.
As such, care should be taken before acting in this way.
[B]Best course of action: contact the official receiver or trustee[/B]
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 contact the official receiver or trustee dealing with their case before proceeding further. [/QUOTE]