If you have been insolvent – bankrupt, had an IVA or a Debt Relief Order (DRO) – then you need to know how this affects a claim for a refund for a financial product.
You can’t make a new claim for a PPI refund – the deadline for this passed at the end of August 2019.
But you can still make affordability complaints and other sorts of compensation eg for packaged bank accounts.
New credit after your insolvency finished
If you became bankrupt or started an IVA or a DRO a long while ago and afterwards took out a loan, your old insolvency doesn’t matter.
Any refunds on credit taken after your insolvency finished will come to you.
This also applies in the rare situation that you carried on paying PPI premiums on a mortgage after your insolvency. Here a PPI refund should be split, with the portion before your insolvency going to the Official Receiver and the portion afterwards coming to you.
Refunds & bankruptcy
When you go bankrupt, all your assets belong to the Official Receiver, except for things such as clothes, normal domestic items etc. Refunds are classified as an asset, even if you haven’t yet started a claim. As a result, if you do make a claim, all the money will go to the Official Receiver not to you.
This also applies after you are discharged and after any Income Payment Agreement is ended. It also applies if the debt was repaid before you went bankrupt so it wasn’t included in your bankruptcy. So if you have been bankrupt, don’t bother making any claims about any loans that were taken out before your bankruptcy.
Refunds & Debt Relief Orders
In a Debt Relief Order your assets do not become the property of the Official Receiver. You can therefore theoretically try to make claims for refunds at any point.
It is important however that you do not make a claim whilst you are in the 12 month ‘moratorium period’ as if it is successful your DRO may be revoked. This may not happen with a small refund, but it’s not worth the risk – just don’t make a claim until your DRO has ended.
After your DRO has completed, most advisers think it is safe to apply for a refund. I have never heard of anyone having had a problem who has done this.
BUT if the refund relates to a debt which was included in the DRO the creditor may choose to offset the refund against the debt – even though you think your debt has been written off at the end of the DRO.
I know some debt advisers don’t think there should be a “set off” in this situation, but you won’t win a case if you complain to the Financial Ombudsman about this.
Refunds & IVAs
The right to make a claim for a refund is an asset that became part of the IVA at the start. It doesn’t make any difference if the debt you want a refund for was repaid before your IVA started – the right to make the claim is still an asset which you owned when you started your IVA.
The majority of IVA firms try to reclaim any mis-sold PPI compensation before completion and you are usually obliged by the terms of your IVA to help with this process, for example by completing the necessary forms. If you don’t understand why your IVA firm is entitled to do this, ask them to explain, showing you which clauses in your IVA are relevant. They are probably right, but you have a right to know why.
After your IVA completes, the Court of Appeal decision in Green v Wright, published in March 2017, determined that a PPI reclaim after an IVA completion certificate issued should be paid to the IVA firm to go to the creditors, not to the debtor. See PPI Claims after your IVA ends for more details.
As a general rule of thumb, it is probably pointless to make a PPI or any other refund claim during or after an IVA has completed as any refund will not be paid to you.
Claims companies – don’t use them!
It is really important that if you have been insolvent when you make a mis-selling claim, you do it yourself and don’t employ a claims firm to help. If the end result of your claim is that compensation is paid to the Official Receiver or to your IVA firm, or it is ‘set-off’ against an old account, you will not receive a cheque. But you will still owe the claims company their percentage of the compensation as their fee – so your situation would be worse as you would then have a new debt!
Get a refund from large loans?
How to use a credit builder card
Consolidating with bad credit?
Gareth says
I’m halfway through a DRO and the bank I had debt with suddenly popped up with a PPI payment offer. I may be forced to accept it by the official receiver as it is now a potential ‘asset’. Even though it is considerably lower than my debt, and will do nothing but deactivate my DRO and either put me back into making payments, or back in the lengthy process of getting another DRO. I wonder, is this a move by a certain bank to claw back funds from folk they legally can no longer pursue?
To make it clear, I have never sought PPI repayment, I was offered it by the bank and do not want it. However, as mentioned above, I appear to not have a choice, it is enough (for the official receiver) to view it as a potential asset to have grounds to consider revoking the DRO…
The approved intermediary is Christians against Poverty. They seem pretty certain my DRO will be revoked, and have given me a week to contact the OR…
I really do not know what to do here, I don’t want the payment, but now it will all be down to the official receiver to decide my fate on a claim I have never wanted.
Sara (Debt Camel) says
I think you have to follow CAP’s advice and contact the DRO office. You should emphasise that this PPI offer was unsolicited and that you just want your DRO to complete.
Sara (Debt Camel) says
See this new article on this topic : https://debtcamel.co.uk/ppi-refund-dro-revoked/.
colin parker says
I claimed my ppi through a company quite a while before i done a dro my dro has now ended can the bank take the money even theo the dro has now finished ????
Sara (Debt Camel) says
hi Colin, The bank may try to keep the money to set it off against your previous debt. As this article explains, if the bank does this you should complain formally to the bank and then to the Financial Ombudsman.
Kevin says
Hi there finished my iva got the certificate but got ppi on 4 halifax loans is it worth claiming yet all wait for the courts to decide if it should go to me not the IP thanks
Sara Williams says
hi Kevin, I would wait a bit until things are clearer! Pop back in a couple of months and I’ll edit this article to say what the news is.
julie barker says
Hi My Husband and and I have completed our IVA with PayPlan last year and have our completion papers dated 17/07/14 we tried to claim back PPI from Halifax whilst in out PPI in 2012 which they rejected, in Dec 14 they wrote to us saying they were rechecking all cases. In March 15 Halifax confirmed they owed us PPI and sent a redress to Payplan after alot of phone calls they have still sent the redress to Payplan, my question is how long even after a completed IVA can money keep been paid back to creditors. It just seems even after trying to get back pay back and complete your IVA you can never get away from your IVA company how long does this legally go on for. Whilst in the IVA payplan did successfully retrieve funds from other loan companies.
many thanks for your help.
Julie
Sara (Debt Camel) says
Hi Julie, you need to talk to Payplan to see if you are entitled to any of this money. Often the answer is No – it depends on the wording of your IVA – but it’s worth asking. There is no time limit here.
Andy says
We finished our IVA in 2011 with a certificate of completion, I have now had a ppi claim upheld by the financial ombudsman and the company in question have now agreed to settle.
As this loan was originally in my I’ve will I get all the money ie ppi money?
Many thanks Andy.
Sara (Debt Camel) says
Hi Andy, this will depend on the wording of your IVA, any other documents (possibly called assignments) that you have signed and also the outcome of the recent legal case that is referred to in this article.
Andy Mc says
Hi. I really hope you can provide some advice. My wife bankrupy has finished, but she recently used a PPI Management Company to establish if she was due a refund. Today she was received a letter from the bank saying that she has been mis-sold PPI and the check is being sent to the insolvency agency. Having read these posts i am really concerned that if the insolvency agency take all the funds we will have to pay the management company their commision (and due to the value of the re-payment this will be a considerable amount e.g. not just hunderd’s). Are you able to provide any guidance how we can possible avoid this action being taken? I have read the PPI firms T&C’s and it does not mention this scenario? If we phone the insolvency agency will they consider a request that they pay the commission? Many thanks in advance from a worried husband..
Sara (Debt Camel) says
Hi Andy Mc, she should talk to the Official Receiver but I am not optimistic about the result I am afraid. Were the PPI Claims firm aware that she had gone bankrupt?
Andy Mc says
Hi Sara, firstly thanks for your e-mail, and you advice above. I thought i would give you an update. My wife phoned the Insolvency Agency this morning. They advised that we would not receive any of the claim (which was to be expected as it is deemed an asset as you mention). However, some good news; they will pay a percentage of the full PPI amount to the PPI Management Company (which is good news). My only concern now is that the percentage the Insolvency Agency send to the PPI Management company is less than the percentage they are charging us, so the full commision will not be issued (does that make sense?). I am concerned that they (the PPI Company) might request the difference to be paid by us. They have not contacted us yet so we are ‘keeping our heads down’!
My wife did mention to the PPI Company that she had previously been banckrupt, and the insolvency agencies provided the same course of action as you should they try and claim any further commision payments.
Again, many thanks and if the position changes i will try and remember to update you.
Jamie says
My partner was bankrupt back in 1994. She has heard last week she is due a possible ppi payout. This card was offered to her a good few years after her bankruptcy from the bank. She did not have card at the time of bankruptcy and it was not included on her form as she didn’t have it at that time. I have read up on all different sites but they don’t have her situation down. As I can make out it’s ok to accept refund to her as it was not a debt she went bankrupt on
Sara (Debt Camel) says
Hi Jamie, if the PPI was on credit that she took out after her bankruptcy ended then she can take the PPI refund.
Jamie says
Yea it was on a credit card that was taken out after bankruptcy. This was not on her bankruptcy claim
Sara (Debt Camel) says
Then the refund is all hers :)
laker says
Hi all,
I am still paying my IVA due to complete in July.In 2010 my IVA supervisor applied for a PPI refund on my behalf which was unsuccessful. However,I received a letter from my bank last week stating that they have reviewed my previous application and would be making a payment of 700£.Yesterday, i checked my bank balance and they have deposited this into my account. Should I inform my IVA supervisor as I do not want to fail since am due to complete. I’m attempted to use the money to pay rent as I am in arrears.Not sure what to do? Do you think my IVA supervisor would find out? Currently,i am also still waiting a review . Please advice.Thank you for advice advance.
Sara (Debt Camel) says
hi laker, you do need to tell your IVA supervisor about this. But also discuss your rent problems and ask if your payments could be reduced at all if you are struggling.
Sandra says
I have an iva due to complete next year. A few months ago I got a form from a bank that I had an old loan with (the loan was paid off before I entered my iva so wasn’t included). I filled it in and they have offered to refund my ppi. Do I need to tell the iva company about it as the loan wasn’t included in it? What happens if I don’t tell them?
Sara (Debt Camel) says
As it says in the article, whether the IVA company is entitled to the PPI will depend on the terms of your IVA, but they usually will be. You do need to tell them. If you don’t you may be in breach of your IVA and they may well find out e.g. when they look at your bank statements after your IVA has ended.
Gemma says
My husband was in an iva with payplan which completed in January 2011 and certificate issued a year later, they delayed the certificate as they made him agree to let equity finance to chase ppi, they have given my husband the 8% interest part of all of the ones won but always put the bulk back into the iva, this is still ongoing and only received a letter yesterday saying another one has been won but is being sent to PayPlan. We are in a 2 bedroomed house a boy and girl children and have a negative equity northern rock interest only mortgage, we desperately need to move.. All of that money could go a hell of a long way for us right now!! Any advice to what we can do? He has had completion certificate but still they keep taking!
Sara (Debt Camel) says
Hi Gemma, here is a new article that addresses this problem: https://debtcamel.co.uk/ppi-claims-after-iva/. If he agreed before the IVA completed to let Payplan continue to collect and distribute PPI there is probably little you can do. If he didn’t agree than the case discussed in that new article is relevant.
Angiebaby says
My mums IVA company claimed my mums PPI but are not taking this off the final amount owed and are keeping it over and above…..is this right? If not what can I do about it?
Sara (Debt Camel) says
Hi Angie, it is possible your mum has misunderstood what is happening. Some of the PPI compensation will be kept by the IVA company but the rest should go to her creditors. This however is unlikely to reduce the amount your mum has to pay each month. If you think the IVA firm will keep all of it, then that doesn’t sound right – I suggest your mum asks her IVA firm for a written explanation and if she is still unhappy she takes that to her local Citizens Advice and asks for their help.
Libby says
Finished an IVA three years ago. Now have been offered a PPI payment. It says will go through my IP but I have no correspondance with them anymore and have moved since so the details they have are out dated. Will I get anything?
Sara (Debt Camel) says
Hi Libby I suggest you read this later article about PPI after IVAs have finished as it may be relevant for you https://debtcamel.co.uk/ppi-claims-after-iva/
Jo says
My husband has 12 months to go to complete an IVA. The company has recently proceeded with PPI claims on my husbands behalf. Most have been unsuccessful. We have had a letter from a company with which we hold a joint loan, taken out before the IVA. The claim is valid for nearly £5000. The company can’t release it to the IVA as I have not been part of the permission process. Am I able to object to all the PPI claim being collected by the IVA company? I have a good credit rating and no loans etc apart from this one so the IVA is in my husbands name only and relation to his accounts only. Many thanks for any advice you can offer me,
Sara (Debt Camel) says
Hi Jo, it may depend on the exact wording of your husband’s IVA but it is normal for a PPI refund on a joint loan to be divided 50/50 between the IVA firm and the non-IVA debtor. I suggest your husband talks to his IVA firm about this.
Tracey says
Hi,I had a DRO in Jan 2010 which was completed in Jan 2011,I have just done a free check with a PPI claims company who confirmed I have PPI .The company has said it will not take on my case as any money due to me may be taken towards my DRO surely this can not be right it was 4 years ago!!???
Sara (Debt Camel) says
Hi Tracey, well it’s lucky you seem to have come across an ethical clams company – many of the aren’t. If you got a PPI payout, it couldn’t be taken towards your DRO – there is just no mechanism to do this.
(Edit) Technically there is a possibility that your DRO could be revoked but I have never heard of this being done. There are only a handful of cases each year where a DRO is revoked after it has completed – the OR has to go to court to do this and as far as i am aware, they have been done because it has later come to light that money was received during the DRO and not reported to the DRO unit.
Donna says
Hello I started my DRO in July 2015. In 2013 I tried to claim for PPI from Barclaycard. That same year they told me that I was not due PPI which I was ok with. Recently I received a letter from Barclaycard stating that they have reviewed my case and they made a mistake and that I will be receiving PPI claim. It is just over £1,000 but my DRO is just under £15,000. In the past I had an IVA which completed in 2009 therefore they said the cheque may go straight to my IVA company. The Insolvency Service have written stating they received a letter from Barclaycard and that my eligibility for a DRO may be at risk of not completing. I have not received this cheque as yet but where do I stand? Can I send the cheque back to Barclaycard if it comes straight to me? Have you known anyone to have their DRO revoked over PPI claim?
Sara (Debt Camel) says
Hi Donna,
if the PPI refund is just over £1,000 it falls into the band where the OR has discretion about whether your DRO should continue. There is more about this here: https://debtcamel.co.uk/dro-income-up/. You need to talk to the OR about what you should do.
I hope this gets sorted.
Lisa H says
Hi I am really worried. I was discharged from bankruptcy in 2011 and made a ppi claim stupidly not realising I shouldn’t as part of my bankruptcy. I then received settlement which was used to refurbish house. I now have had another letter saying they owe me more as they have reviewed my case but as I have been bankrupt the funds will go to my official receiver. I am now worried sick the the OR will come back to me and I will be in trouble for previously not disclosing money received. Help!!
Sara (Debt Camel) says
Hi Lisa, I suggest you should be pro-active and contact the OR and explain you had no idea the funds were supposed to go to the OR. Sorry.
Lisa Hibbert says
The money was received by the bank which were my creditors how can that be surely they would have known I was bankrupt so why did they send this last payment direct to or and first cheque direct to me through poi management company?
Sara (Debt Camel) says
Hi Lisa, I think the Insolvency Service has recently been reminding banks that they should check if people have been bankrupt before paying out money.
So far this has just been an honest mistake by you – that’s why it’s best for you to tell the OR about it, showing you didn’t mean to hide anything.
Daryl says
Wish I had found this link earlier. Went bankrupt in 2009, was discharged from my bankruptcy a year later in 2010 and made all remaining monthly payments for a further 2 years. It’s been a long hard climb to establish a credit rating for myself in fact took till June this year for the bankruptcy to clear my credit report and be offered any sort of credit which wasn’t at rip off APR. So I saw it as a punt to nothing a couple of months ago when papers arrived from my ex-bank saying I may of been mis-sold PPI way back when so I filled them in. Lo and behold letter arrived today saying my claim had been processed and they owed me X amount of pounds (wow what a big smile I had) short lived because on page 2 monies will be paid to official receiver. After a very short phone call was informed all monies would be kept by OR to pay past debtors even if money was left over after these payments were made I would receive nothing. The irony is had the PPI not been taken in the first place I would of had no need to go bankrupt. It’s a gut punch beyond belief as I now feel I have been punished twice having struggled through the IPA and blacklisted credit rating over the past years to start moving on with my life and now have what was basically a deposit on a house ripped away is heart breaking!!!!! PLEASE IF YOU HAVE EVER BEEN BANKRUPT DONT CLAIM BACK PPI FROM BEFORE HAND ITS NOT WORTH SEEING WHAT YOU COULD HAVE WON!
Tracey says
I have received a lot of money through ppi refunds from 2012, in fact just had almost £10k back from Lloyds on a recalculation. I declared bankruptcy in 2007, was discharged in 2008 and husband then died in a car crash. I used part of the insurance money to pay off all debts including statutory interest via the OR and have a letter stating they have no further interest in any assets and my debt balance with them is nil. So, if you have paid back your bankruptcy there is hope.
Matt says
Hi, During the closure of my IVA (which by the way took 2years (complaint raised and won with the governing body)) the IVA company claimed my PPI. Are they allowed to do this? As surely this money has contributed in to one of the reasons you potentially got an IVA in the first place! After all the company that they claimed it back on was for a very large amount of money.
Sara (Debt Camel) says
Hi Matt, I do understand this is maddening – without these huge PPI amounts many people would have been able to repay their debts. But if the money was claimed back by your IVA firm before a completion certificate was issued, there is likely to be nothing you can do about this.
Wafflesalot says
Hi,
I was made bankrupt in 2009 due to fraudulent activity on my account by an ex partner. I went to the police, but the burden of proof was too high so the bankruptcy stood. I was discharged a year later. Late in 2015 I was sent a letter from the bank stating I was mis-sold ppi. I received a letter today letting me know I paid a heft sum but that it was all going to the official receiver. I had no idea that these rules were in place and hadn’t informed them. I have 2 questions, firstly is there any point in me writing to the OR to state my case and ask for the ppi to be paid to me. Secondly, and this is the most upsetting, had I known that there was ppi on the loan, I could have used it and would not have had to go bankrupt in the first place. Is there anything I can do about this? It basically destroyed my life at the time (it’s been a long hard road back to normality.) I very much appreciate any help or advice. Many thanks.
Sara (Debt Camel) says
1) It is standard practice for PPI to be paid to the Official Receiver. I’m sorry but I doubt you will gain anything by writing to the OR.
2) It is very annoying, I know. That is why I encourage everyone to reclaim any possible PPI – even checking debts they didn’t think there was any PPI on – before bankruptcy, an IVA or DRO. But there just isn’t anything you can do about this.
Claire Pocock says
In order for dfd to consider an early settlement I was told I had to sign a variation proposal (hounded by them) which basically said all ppi would go to them not me or my creditors. I had no choice but to sign then lloyds paid out £4000 & all went to the supervisor. So now if I get ppi not from an iva debt I have to gove it to them! Prefer to leave it where it is then!
Claire Symonds says
i applied for my ppi to be looked into back in 2010. i went into a repayment plan in 2013 and have started the process of iva. received a letter today saying they have relooked at my ppi and a cheque is in the post. as my iva hasn’t started doi need to tell them?
Sara (Debt Camel) says
I’m not sure how far along with an IVA you are … have you been asked to list your assets including savings? Because these will now be larger and you should inform the IVA firm you are talking to about this.
BUT you should probably take this opportunity to rethink the IVA. Could you use the PPI money as a full and final settlement of some debts and then be able to manage without an IVA at all?
Nina says
Hello I’ve been in my Iva for a year and although all banks came back with no ppi payment today I have got a letter saying they have missed some and sending me a chq , just having my year review now do I need to tell Iva company ?
Sara (Debt Camel) says
Yes you do. This is a windfall that will need to be paid into your IVA.
Len says
But how would IVA company find out about it?
Sara (Debt Camel) says
Sometimes the PPI firm will tell them. But if they don’t, the credit will show on your bank statement.
Ruth says
Hi, I was made bankrupt in 2007, discharged 2008. I now find that I had PPI on 4 loans and a credit card. Is it worth me pursuing or am I still bound by law to inform the official receiver and give them the PPI?
Regards
Ruth
Sara (Debt Camel) says
Any PPI refunds will go to the Official Receiver so it’s not worth bothering to try to get them.
UNLESS the PPI was on debts that you took after after you bankruptcy ended – if this is the case, the PPI should come to you.
Ruth says
Ah,no sadly it was on the loans that helped to bring about the bankruptcy. However I took out a loan in 2001 and completed it so it wasn’t part of the bankruptcy,can I pursue that? Thank you for taking the time to reply.
Sara (Debt Camel) says
No sorry, anything that happened before you want bankrupt would be regarded as an asset of your bankruptcy, there is no point in claiming for this.
june says
hi I was made bankrupt 10 yrs ago today ive received a letter from Barclays about ppi on loans I had before I was made bankrupt can I claim ppi or am I not entitled to do this
Sara (Debt Camel) says
You could claim, but the money will be paid to the Official Receiver, not to you, so there isn’t any point.
Sue says
I had a iva finished 6 years go, can I claim , ppi back on what I had .
Sara (Debt Camel) says
There is a court case underway – I suggest you read up about it here: https://debtcamel.co.uk/ppi-claims-after-iva/ and then wait for the result of that appeal before making a claim.
Pete Wilson says
Hello, I made a PPI claim in 2008 through a PPI claims company (stupid I know) and I went bankrupt in 2011. I received a refund in 2011 after my bankruptcy and wrongfully kept the money. The PPI company are now chasing the fee’s from that money – do I owe them it or do I not as it was a financial agreement entered into before I went bankrupt. (Yes I know I have likely committed a bankruptcy offence by not telling the OR)
Sara (Debt Camel) says
The financial agreement was entered into before you went bankrupt, but I am not sure if the debt would have arisen then or when the PPI was repaid, it may depend on the T&C you signed with the claims company. I think you are going to need some further advice on this, try talking to National Debtline on 0808 808 4000 or your local Citizens Advice.
nicola Leonard says
Hello Debt Camel I wonder if you can help me. I had an IVA in place around 15 years’ ago. Thirteen years ago I got pregnant and advised the IP that I could not make the payments required and assumed I would be made bankrupt (as per the order). This was fine with me as I didn’t have any assets. However, I did not hear anything ever again from the IP or any of the creditors. I found that very odd at the time as I was at the same address etc for almost two years afterwards. That was 13 years’ ago. Can I now reclaim any missold PPI from people I originally owed money to? Any help gratefully received. Kind regards Nicola
Sara (Debt Camel) says
It would seem to be unlikely that you were made bankrupt. The debts in your IVA will by now be “statute barred” (see https://debtcamel.co.uk/statute-barred-debt/) however they will still exist. If you try to reclaim any PPI it is possible (but not certain) that the creditor will offset any PPI refund against the remaining debt owed. Because of this you shouldn’t use a claims firm, otherwise you may end up with no money and owing the claims firm their fees.
CW says
I had an IVA that finished in 2012. Although I received a letter confirming final payment had been received I never actually received an official certificate. The Company I used for my IVA has since been dissolved. I no longer have the original IVA paperwork and wonder where this would leave me if I was to claim PPI.
Sara (Debt Camel) says
I assume your IVA is no longer showing on the Insolvency Register: https://www.gov.uk/search-bankruptcy-insolvency-register. If that is correct i would guess you are likely to be OK … but this whole area is pretty hard to predict. Don’t use a claim firm!
Sarah Back says
Can I claim the 8% interest back from official receiver. The interest as well as the original sum has been paid to O/R after claiming for being charged a monthly fee to have a Barclays Additions account? I went bankrupt in 2011 and today Barclays have said I won my claim but have sent it direct to O/R. The man at Barclays said I may be able to get the 8% interest back from them. If so how?!!
Sara (Debt Camel) says
I haven’t come across this. I suggest you contact your Official Receiver and ask.
Claire says
Can i ask if you were successful in claiming the 8% interest back?
emily says
HELP
i have recently used a highly advertised PPI claims company who stated to me that my Bankruptcy 9 years ago was irrelevant to making a claim for PPI,
i even spoke to one of their managers to clarify, she told me that as my credit was now fine and i had current credit cards and loans that i could go ahead with my claim.
I was eventually offered nearly £5000 from lloyds but they have sent this money to the OR as this loan was included in my bankruptcy,
trouble is the PPI company still want their 30% (£1500) from me regardless of the fact i haven’t received anything in my pocket
i spoke to the insolvency service and they said that the PPI company were out of order allowing me to go forward with a claim, and also that the OR will award the PPI company their fee, but only 10% of the award
anyone else had this and is the IS correct as i cant find this information in writing ?
im worried as i havent got £1500 just to pay a company for misleading me
Sara (Debt Camel) says
It is correct that this should go to the OR not to you :(
Did you tell the company in writing that you had been bankrupt? Which company was it?
Emily says
Yes I agree that the money should go to the OR , I accept that
I didn’t put anything to the ppi claims company in writing re my bankruptcy , I wasn’t asked to
I verbally informed them twice , both times they advised it was irrelevant and I could continue my ppi complaint and be entitled to a refund
The company is stanton fisher
Sara (Debt Camel) says
I suggest you should put in a complaint to them saying that you were misinformed by them. Ask them to check their phone logs to prove it. Ask them to reduce their charge to 10% as you cannot afford to pay them anything as you have not received any benefit.
If they refuse, I suggest going to your local Citizens Advice and asking for their help to take the case to the Legal Ombudsman.
Emily says
Thank you for that
I have contacted the ppi company today and to be fair they have been very helpful
They have said that if I provide them with details of the OR they will claim their fee back from them and it will be 10 %
The other 20% of the fee will be wavered
I feel so relieved now
Thanks for all your advice
Richard says
Hi,
I was bankrupt 9 years ago, I was offered ppi claim from my bank so I assumed I was entitled (as this was the bank I went bankrupt with!)
They’ve now said that they are sending all the claim entitlement to the OR which is fair enough but 1 of the loans was totally paid off 4 years before I went bankrupt, am I not entitled to this money as it was nothing to do with the bankruptcy as all paid off??
Do I need to contact the OR about it- to try and claim back from them?
Thanks
Sara (Debt Camel) says
No, sorry, it doesn’t matter that the loans were paid off before your bankruptcy. When you go bankrupt all your assets (except exempt ones such as clothes and normal household belongings) become the property of the OR. This includes abstract things you can’t touch and things you didn’t even know about at the time – such as the legal right to make a PPI complaint.
Desmond says
Hi i started an iva a couple of months ago 2016 but i have recieved ppi about 3 years ago will this affect my iva
thanks des
Sara (Debt Camel) says
No, claims made before your IVA don’t matter.
mchael smith says
i had a dro in 2010 its now 2016 a firm says i have ppi bank sent me a lettersaying yes they owe me just over £3000 the firm says they wont £1000 payment will i get the ppi money or not & will i have to pay the firm
MickK says
Hi,
I completed my IVA in august 2016. I didn’t sign a ppi extension but I did agree that my IP could carry out a ppi search prior to offering a full and final settlement. The settlement figure was accepted by all parties and I got my completion certificate in august. Since then I claimed against NatWest and was offered in excess of £7000. I accepted and then received a letter stating that I was in a live IVA and that the funds would be sent to my IP. I wrote back to the bank enclosing script of my comp cert. a few days later the bank called me and told me that a cheque would be posted. I waited for 2 weeks then called them back and was told that the funds had been put in an account held by the debt management team. I had to wait a further two weeks whilst it was reviewed. In the meantime I contact my IVA company and told them the whole story. They wrote back saying that they have no interest in the funds as a full an final settlement was made. I called IVA team at the bank who said that they had no interest in the funds either and after the 30 day review period, I should receive a cheque. I called them today and although they didn’t spell it out, it sounds like they are going to keep the money!
How can this be legal as we all agreed on a full and final settlement! Not only that, but should these funds have been made available prior to the IVA, I wouldn’t have gone into one!
Can anyone shed any light on this please?
I have heard of a similar case Green versus Wright I think?
Thanks
Mick
Sara (Debt Camel) says
Legally this is completely different from the Green v Wright case, that is not relevant to your situation.
If you have a letter from your IVA company saying they have no interest in the money, I suggest you put in a formal written complaint to NatWest, saying they are behaving unreasonably,attach a copy of the letter. Hopefully that will sort the matter. If it doesn’t, your next action depends on what they have replied to you. Options will include going to the Financial Ombudsman or getting a solicitor to write them a letter.
MickK says
Hi Sara,
Thank you for your help on the matter. I will await their next letter which they said I would receive within the next few days.
I’ll let you know how I get on.
Thanks
Mick
Leanne says
Hi!
I had a DRO in May 2011! To be honest I thought I was ‘in’ the DRO for 6 years but after reading the article above it looks like I’ve been out of it since May 2012 and it will be wiped from credit history in May this year! Is this right?
Also, I can’t really remember what debts I had on it. I think there was a credit card, a loan and a store card! I may still have the paperwork from my DRO somewhere but I’ve moved house since so not sure where to even start looking.
Is there anyway I can find out what debt I had on it and if I would be able to claim any PPI I am owed without doing it through a company who would charge me an arm and a leg.
I don’t mind doing the leg work myself and just thought I would check out of curiosity!
Thanks
Sara (Debt Camel) says
May 2017 sounds right! I suggest you look at your credit records and check they are all correct so they will be “clean” after this – see https://debtcamel.co.uk/repair-credit-record-dro/.
Looking at your credit records should also give you a list of your old debts as a starting point for reclaiming PPI. More about PPI reclaims here: https://debtcamel.co.uk/ppi-out-of-debt/
Karen says
Hi
My husband is in the middle of an IVA and I was going to see if I’m owed any PPI from mortgages I had before I met him, but am not sure if it would be worth me trying as I’m worried it will go into the IVA. When he entered the IVA the company tried to pursue any PPI in his name but
didn’t ask me .
Sara (Debt Camel) says
Any windfalls you get, from PPI or inheriting money, shouldn’t be affected by his IVA. Go for all the mortgages, credit cards and loans you have had! Just make sure any refunds are kept in accounts in your name only, not joint accounts.
GAIL says
Hi can I claim ppi if the credit went to court and it was put as a charge on my house? I have since sold the house and all creditors have been payed back.
Sara (Debt Camel) says
You are posting on an article about IVA / DRO / bankruptcy and PPI – have any of these applied to you?
Marc Roberts says
I had a dro that finished about 2 years ago, but every firm I have tried to claim ppi back with have all said sorry we Carnt continue with your claim as you’ve previously had a dro” so,who is right and who is wrong here?
Sara (Debt Camel) says
It is a bit of a grey area. As the article above says, “most advisers think it’s safe to make a PPI claim”. The difference between a DRO and bankruptcy is that in bankruptcy your assets at the start of your bankruptcy transferred to the Official Reciver, and this includes the “right to make a PPI claim”. In a DRO there is no such transfer. There is no mechanism that I am aware of for a PPI refund made to you to be claimed by the DRO Unit of the Insolvency Service. There is the possibility that your DRO could be revoked, but no-one has ever heard of this happening.
(If you do want to make a claim, it’s best to avoid claims firms because if somehow the DRO Unit did get the refund, you would still owe the claims firm their excessively large fees.)
Becky says
Hi, my husband has recently lost his job and we are seriously considering bankruptcy for him. He has just been told he has been successful in a PPI claim through a claims company. We plan to wait until after his payout and the claims company have taken their cut of his payout before he files for bankruptcy. Our query, is that will this be negatively viewed by the OR, as the claims company will have their money, but his other creditors won’t be paid the same amount- i.e. Will this be viewed as him not treating creditors equally? Sorry if this is hair splitting, but I’m terrified about making sure it’s all above board and that the OR will be happy.
Many thanks
Sara (Debt Camel) says
How large is the expected refund? Is there any reason why you are waiting for this – do you need it to pay the bankruptcy fees?
Hugh mcinnes says
Hi there
My wife claimed ppi on loans before we were married. A few years after we were married we went bankrupt on a joint account. What I’m asking is will her ppi be affected on the loans she got when she was single
Sara (Debt Camel) says
Yes, she won’t get any PPI money back for any loans or credit cards paid before she went bankrupt.
Gareth Jones says
I was made bankrupt in February 2004. I paid the agreed amount with the OR for 36 months. Will it be worth me applying for PPI taken out before 2004 or will any refunds still go to OR.
Sara (Debt Camel) says
Any PPI refunds will go to the OR.
stuart says
Hi
I was in an IVA which was completed in December 2009, would it be worth claiming PPI or would it be a waste of my time.
Thanks
Sara (Debt Camel) says
You could contact your IVA firm and ask? I suspect many won’t be interested after all this time.
If they say the money will go to them, you could offer to split it 50/50 on the grounds that otherwise they will probably get nothing as I haven’t heard of any very old cases being reopened.
Peter swan says
Hi. I’m currently in the middle of an iva however I have the chance to claim ppi on a car finance loan that isn’t part of my via. I finished paying the car finance about twelve months ago then the money used to pay the car finance is now part of my monthly Iva payment. However can claim the ppi as if i win the car finance company can’t use the claim to offset any debt with them as like I said before I paid the full term of the car finance so it will be paid to me. ???????? If this is the case is there any way my Iva supervised can find out ????????
Sara (Debt Camel) says
As you took out the car finance before you started the IVA,the PPI will go to your IVA firm. The fact the car finance wasn’t included in your IVA is irrelevant. Your name will be on the public Insolvency Register, so the finance provider will know and will sent the money to your IVA firm.
Emma says
Hi. I had loans years before I done a debt relief order. My dro ended may 2015 so if i make PPI claim now would they send check to me as been out of the dro for 2 yrs. Thanks very much
Sara (Debt Camel) says
The check should probably come to you. But some lenders try to offset it against a debt you had with them in your DRO. This si why it’s best not to use a claims firm, otherwise you have to cheque and are left owing the claims firm their fees.
Ann Barnes says
Hi, I went bankrupt in 2004, can I claim ppi for credit cards and catalogues since then. I know I can’t claim from the ones before. Thank you
Sara (Debt Camel) says
Yes you can – good luck!
Ann Barnes says
Thank you for getting back to me so quick
Scott says
Had dro 2008 and am thinking of applying for ppi against loans and credit card now as thinking am safe from threat. Whats my chances. What have i to loose. Thanks in advanve
Sara (Debt Camel) says
As the article says, most advisers think you are safe to apply for PPI after a DRO has completed. I am not aware of anyone who has had a problem after doing this.
Keith says
Hi , you may not be aware of this but I am, as I had a DRO which completed in June 2011 and included a credit card debt with Capital One. I was made aware by a company, in app June 2016, that I was owed PPI by Capital One and I told them I was not interested to have them deal with it and instead dealt with it myself. I eventually received an offer from Capital One and accepted it. They said I would receive a cheque for the amount within 10 days but this was not forthcoming, so I contacted them and was told that the refund had been taken to offset the debt that was owed under the DRO. I contacted the Financial Ombudsman and after a multitude of mistakes and outright ignorance they decided that Capital One were entitled to keep the refund and refused to find in my favour. To this day I have still not been given the refund, so who is right !
Andy says
Hi,
I have a bit of a tricky situation and need advice please.
I entered into an iva in 2004 and completed in 2006 of which one of the debtors was northern rock (now managed by nram)
I have logged a claim for ppi with nram and they have since informed me that it did have protection in the debt but state on their letter that any moneys will be redressed to my trustee.
I have contacted the company that did my iva and they have told me that it is closed and satisfied and any money to be paid out will be mine.
Nram then requested a letter from the iva company to confirm this but they cannot do this due to the account being closed and that in order to do this they would have to open a new case which isnt possible as i no longer have debt or any need to open an account with them!
Sara (Debt Camel) says
“they cannot do this due to the account being closed and that in order to do this they would have to open a new case which isn’t possible as i no longer have debt or any need to open an account with them!” this doesn’t really make much sense. Who is the IVA firm?
Sandra says
Hi Sarah
My ex-husband went bankrupt over 5 years ago and completed the relevant procedures. My question is…. if he went bankrupt owing £7,000 and then a PPI claim was made (on ppi before bankruptcy) and the amount owed to him was £20,000 does the trustee have the right to take all of the money?
Sara (Debt Camel) says
was this PPI claim on a joint account?
Sandra says
Yes it was….. thanks for your speedy reply.
Sara (Debt Camel) says
I would expect the trustee to only be able to take half of the money.
jim says
hi their, i was made Bankrupt in april 2011,and discharged in 2012 after a year,i would like to know if i made a ppi claim now would i be able to keep any payments!!
Sara (Debt Camel) says
If the claim is for PPI that you paid before your bankruptcy then No, any repayments will go the official Receiver, not to you.
jim says
can the ppi campany keep their part of the payment or will they bill me and give full money owed to the courts!!
Sara (Debt Camel) says
oh big mistake to use a claims firm. Did you tell them you had been bankrupt? Did they ask?
jim says
yes i have told them that and they said note!!at least 9 ppi,s their sorting out!!
Sara (Debt Camel) says
Well I suggest you email them saying you have been informed that all the PPI refunds go to the official receiver and you feel they should have told you this at the beginning when you said you had been bankrupt. Point out they will have to ask the official receiver for any fees as you won’t be paying them as they have misled you.
The OR does usually offer these leeches something. Hopefully they will be happy with that and not decide to sue you for the rest of their extortionate fees.
jim says
Thankyou very much for your help feel a right pratt thinking for the 1st time in a very long time we could have some spare money in the bank for a holiday!!
Sara (Debt Camel) says
Well come back if things do get difficult, hopefully they won’t.
Emma says
Hi,
After going bankrupt in 2009 I had a few letters from Mis sold ppi informing me i would be recieving money which went straight to the official reciever.
One was for over £5000
Not sure on the rest.
My question is my bankruptcy was for £8,000 so if the the official reciever have received more than £8000 in mis sold ppi claims if I was to receive any more ppi claims would I receive the money or the official reciever as the amount of my bankruptcy would have been paid back?
Sara (Debt Camel) says
Unfortunately, your debts and the official receiver’s fees have to be paid in full before you would get any money back. And the ORs fees are often astonishingly high… you can ask the OR about these fees and the monies they have received, I can’t say what will happen in your case.
Karen roberts says
I declared myself bankrupt 12 years ago I have received a letter from Barclays saying I was mis-sold ppi and the cheque will be paid out to the Iva practioner and if I feel I am no longer subject to the Iva or should the Iva practioner not be due these refunds to contact the Iva practioner to discuss my concerns I phoned Barclays and they told me to call the Iva practioner with it being so long ago they may pay it back to me is it worth me phoning them or just ignore it
Sara (Debt Camel) says
Did you go bankrupt? Or have an IVA?
Karen roberts says
Bankcrupt I have just phoned the receiver and they will keep the money which I suppose is fair just annoyed with Barclays sending me this letter when I didn’t apply for ppi
Suzanne says
Hi There, My husband and I were bankrupted 23 years ago and discharged after 7 years automatically. We will probably have paid PPI on all of our previous debts.
Arch Hall (a claims company) told me that as this was such a long time ago that the OR would not be interested in any compensation claim and that we had nothing to lose. However, in their terms & conditions, it states that they do have a no win no fee policy, but in the event of any paid compensation being used to offset any debts, that we would still owe them a fee. I have asked them to clarify and will update this comment if I hear back.
Has anyone ever been allowed to keep any compensation in this situation? or will we just be worse off? If we were to receive any monies and pay the fees, is there a possibility that the OR could still come after that money, after we had paid Arch Hall their fees?
Thanks
Sara (Debt Camel) says
I have never heard of anyone being allowed to keep PPI compensation from debts before they went bankrupt. It is not a matter of the OR coming after you, what happens is that the compensation is paid directly to the OR.
You should ask the OR if they would have any interest. – it may well be that the claims company is simply saying anything to get you to sign up regardless of whether it has actually had any cases where the OR has not claimed the compensation.
Steve says
Hi , I have had a dro which has finished last week (although I’m still on the insolvency register which I think still remains for 3 months).
I just wanted to know if I would be ok to check to see if I had any PPI payments due?
Or should I possibly wait a bit longer? Or not do it at all?as I don’t want the dro to be revoked.
Any help in this matter will be very gratefully received.
:)
Sara (Debt Camel) says
I have not heard of any of these cases being revoked, although it is a theoretical possibility. If you want to do it I would definitely leave it 6 months.
Natasha says
Hi, I went bankrupt in jan 2011.
Me & my husband have already started saving for a deposit on a house 7yrs on.
In December 2017 I was sent a £1400 cheque from Lloyds (the bank I went bankrupt with) no letter of explanation of why the cheque was sent, no reference number nothing so my husband said just bank it so I did. Then a few weeks later I received another letter from Lloyds this time with another cheque £452 & a letter was enclosed stating I was Mis-sold ppi from my credit cards so I rang them explained that I’ve already received a cheque & that I’ve been bankrupt etc & they said “no worries we have already informed the OR they have no interest in your case/debt now we will forward anything on to you!” so again I banked it.
Then in March 2018 I’ve received another letter & a cheque from Lloydsthe cheque was for £6600!! So I banked the cheque & then paid it straight away as a deposit on our new house.
I met my friend for a chat & explaining everything to her of what has gone on etc & she said “ I’m sorry to give you bad news but you have been given the wrong advice!”
1. The banks do not inform the OR of any ppi that is or was sent that is my job!
2. The insolvency service could chase me & I could be done for fraud!
Oh my gosh, is this true? What do I do now, I’ve spent all the money?
Regards
Natasha
Sara (Debt Camel) says
Have you spent it? Or is it sitting in a savings account to be used as a house deposit?
Lee Warren says
I had a DRO which is now Discharged as it was ordered on the 02/2014 and so ended on 02/2015.
I’ve made a claim for PPI (silly via a company) this year (2018) and was told I would be rewarded some money however they incorrectly said that as I had an IVA (I’ve never had an IVA only a DRO!) that the money would go to paying off that dept and so not to me?
The claims comp said to me that, “the rules in this situation are the same as bankruptcy. Any compensation paid as a result of PPI which was mis-sold prior to the start date of the DRO is considered an after-acquired asset of the DRO (in the same way as it would be had the individual gone bankrupt). As such it must be paid directly to the Official Receiver even after the DRO is finished and discharged. ”
The company to which have said I had an IVA and so will not pay me the money but put it towards my old dept to them have in the last year opened up a new credit card account with me so I’m confused as they would not have given me this new account if I had an IVA surely?
Is this correct?
Sara (Debt Camel) says
Yes it was silly to use a claims comapany. It sounds like you are may get nothing back but still owe them their extortionate fee.
The Claims Company doesn’t know what it is talking about. There is no equivalent in a DRO for “after acquired assets” in bankruptcy.
But that isn’t going to help you if the creditor keeps the PPI refund to set off against the debt that was in the DRO. There is a legal argument that says they shouldn’t do this, because the DRO debt no lender ne’er exists for there to be a set off. But it can be hard to get the creditor to change their mind. If they refuse you can put in a written complaint to them.
Hayley says
Is it possible to claim PPI if you’ve been made bankrupt? I’ve been discharged over 3 years but it’s not not clear when I look online if this would be classed as something the creditors would need to know about even though I no longer pay towards a payment agreement. Any advice would be helpful.
Sara (Debt Camel) says
No. (one unusual exception – you can claim if the PPI was paid AFTER you went bankrupt.)
When you went bankrupt, the legal right to make a PPI claim was an asset which you owned – that asset became the property of the OR. If you make a claim now, the money will just be paid to the OR so there is no point.