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Ash
Ash, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I very recently had a PPi compensation claim awarded and

Customer Question

Hi,
I very recently had a PPi compensation claim awarded and have received a letter from the Bank saying that the cheque has gone to the official receiver.
I declared myself insolvent in 2010 and was discharged from that in 2011. The first and final dividend to creditors was paid out in 2014, and I believed that would be the end of the matter. However, the money has gone to, as I have said, The Official Receiver. It is so confusing to understand why.
Is this right?
Richard
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.
Was a loan to which the PPI applied, been included in bankruptcy please?
Alex
Customer: replied 1 year ago.
The PPi was for a credit card - Barclaycard. Yes it was one of the original creditors when I took out my personal insolvency.
Richard
Expert:  Ash replied 1 year ago.
Thanks. On the basis your bankruptcy has ended, you have been discharged and there was a final dividend you are entitled to the payment. If you had not been discharged and it was ongoing then it would be for the OR to distribute to your creditors. But on the basis its ended and in effect the debt was written off, you are entitled to the payment.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
Thank you for the reply Alex.
I am hopefully believing that you are right. I am a pensioner of 66 and the money involved is just over £8000 so it would make a big difference to my life.
I had been told by a neighbour that the OR takes the view that as this could have been an asset when I was in bankruptcy (I hate that word), then it should go to the OR to further divide among the creditors, even though the final dividend was paid in 2014. He also said that if I had won the lottery or had been left money in a will or suchlike then I could keep that for myself, the Trustee/OR of my case would not be interested. But PPi compensation was viewed differently. It took Barclays years to accept that I was owed this, and the offer letter received about a week ago was a complete surprise to me.
I find it very hard to accept that this windfall will actually go back to Banks and Credit Card companies that took it from me, illegally, in the first place.
So - what do I do next. The settlement cheque or transfer has been made already to the Official Receiver.
Thanks
I hope I have made sense in this reply to you.
By the way, the links in your emails are not working, sorry.Richard
Expert:  Ash replied 1 year ago.
it depends whether the OR considers this a windfall. I would think not given the value. You should write back to the bank and say its a mistake and it should be payable to you. If not you could always take it up with the Financial Ombudsman www.financial-ombudsman.org.uk
Does that help?
Alex
Customer: replied 1 year ago.
Hello Alex,Confused a bit now.
You have said it should have been paid to me because the matter had been closed in 2014 via a first and final dividend.
Now your saying that the OR might keep it, so in effect, my insolvency is not finished ??
You seem to be saying two different things and that if I complain - the result may be exactly what has occurred already.
So in a year, five years, ten years, another surpise PPi letter arrives to my benefit, they would keep that. It looks like it may never end. PPi will go on a lot longer than some people say.Richard
Expert:  Ash replied 1 year ago.
It should be paid to you as it was complete.
Alex