Barclays Loan PPI Cancelling/Reclaim - Advice appreciated

ChrispyDuck · 4 January 2009 at 9:56PM

Hi Guys

)

First post here but i feel i belong after reading loads. Wondering if anyone could help me with the following:

My girlfriend took out a £13k @ 14.9% loan over 7 years with Barclays (in branch) 6 months ago and she was pressured into taking the PPI. We have since found that the PPI is a single premium policy costing around £4k! and this is paid in the loan before actually making any repayments off the initial £13k. We went into a branch the other day to cancel and was told we couldn't just cancel the PPI, she would have to take a new loan out without PPI to clear the existing one. Also the settlement figure on the loan was more than the initial £13k she took out after paying 5x£300!!!

Anyway, we believe she has been miss-sold this policy because:

1. She works for the Police (civilian) so job security is not an issue.
2. Her job pays 6 months full pay then 6 months half pay in event of accident or sickness, so a policy that paid out for only 12 months would be useless.
3. The lady who sold the loan pressured the GF into signing. She was not given time to read all documentation and PPI breakdown not explained (we have the lady's name).
4. She was not told anything about it being a single premium PPI and that this would also incur interest, nor the inability to cancel without the need for a new loan.
5. The loan was over 7 years and PPI over only 5. She was not told about this.

She still has the loan and is still paying the PPI, could you please give advice on:

1. Does she have a case?
2. If so should she cancel the PPI and refinance the loan now (with or without barclays) then start proceedings, or carry on with the loan in the hope the PPI will be refunded off the current loan.

Much appreciated guys

)

Chrispy

di3004 · 5 January 2009 at 12:40AM

ChrispyDuck wrote: »

Hi Guys )

First post here but i feel i belong after reading loads. Wondering if anyone could help me with the following:

My girlfriend took out a £13k @ 14.9% loan over 7 years with Barclays (in branch) 6 months ago and she was pressured into taking the PPI. We have since found that the PPI is a single premium policy costing around £4k! and this is paid in the loan before actually making any repayments off the initial £13k. We went into a branch the other day to cancel and was told we couldn't just cancel the PPI, she would have to take a new loan out without PPI to clear the existing one. Also the settlement figure on the loan was more than the initial £13k she took out after paying 5x£300!!!

Anyway, we believe she has been miss-sold this policy because:

1. She works for the Police (civilian) so job security is not an issue.
2. Her job pays 6 months full pay then 6 months half pay in event of accident or sickness, so a policy that paid out for only 12 months would be useless.
3. The lady who sold the loan pressured the GF into signing. She was not given time to read all documentation and PPI breakdown not explained (we have the lady's name).
4. She was not told anything about it being a single premium PPI and that this would also incur interest, nor the inability to cancel without the need for a new loan.
5. The loan was over 7 years and PPI over only 5. She was not told about this.

She still has the loan and is still paying the PPI, could you please give advice on:

1. Does she have a case?
2. If so should she cancel the PPI and refinance the loan now (with or without barclays) then start proceedings, or carry on with the loan in the hope the PPI will be refunded off the current loan.

Much appreciated guys )

Chrispy

Hi Chrispy

Yes there is still a chance she has a case here, but I also recommend that you check this link out here for further information on PPI mis selling and a list here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

There is also a template letter on the link, so check out that list as well and if any of them occur to your other half add that to the information/reasons you already have to give it a stronger case if possible and write as much as you can to support the case.

They have 8 weeks to respond in full, another letter maybe required if they say you can do this in order for them to reconsider if not successful first time round, or until they give the final response that is generally enclosed with a leaflet of the Financial ombudsman services (FOS), if eligible.

Let us know how it goes and we can help step by step with this case.

Post all letters by recorded delivery and good luck.;)

Di
x

ChrispyDuck · 6 January 2009 at 12:33AM

Thanks for the help.

She's seeing someone in her branch tomorrow to see what the options to cancel are. If they are unreasonable we will be going down the mis-sold route on:

1. being pushed into taking ppi
2. being told she can't cancel without taking out a new loan and having to pay early settlement etc on the current
3. the ppi being too short to cover the 7 year loan
4. and that the fact it's a single premium policy and downsides of it not being explained.

Bunch of thieves these banks/loan companies are :mad:

ChrispyDuck · 6 January 2009 at 3:59PM

Just heard from the GF after she's been to her Barclays branch to talk to them about cancelling the PPI. She has been told to cancel she has to pay off the current loan at a cost of £12,900 and take out a new loan at 17.9% APR !!!

Surely this can't be right? I thought they had to offer you equal or better terms according to the FSA???

Also after making 5 x £300 payments she has only cleared £100 off the loan???

This is just ridiculous !!!

di3004 · 6 January 2009 at 4:05PM

Hi hun

Sorry to hear this.

Unfortunately some loan companies do it this way and I do not agree with it either.

Even if they do this the PPI would be calculated into this settlement, so hun, get a figure of calculations posted, request the breakdown for as soon as possible in writing, then send a complaint/reclaim letter in for the PPI to get that all back.

Do you require the template for this?

di3004 · 6 January 2009 at 4:10PM

Template letter on this link here and some useful PPI information

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Check this out and add as much as possible to back the complaint, they have 8 weeks to respond in full

If they do not resolve this they may suggest another letter in order for them to reconsider, or until you receive the final response they should suggest the Financial ombudsman service with an enclosed leaflet, if still not successful you can then complain to them.

Post all letters by recorded delivery, for proof of posting and to check on the 8 weeks they have.

If you do not get a response at all from them by the full 8 weeks then complain to the FOS anyway and on the form you can explain the 8 weeks have been and gone and you heard nothing, so you would not appreciate the Financial service to investigate this complaint.;)

Just ask away if you require more info hun, good luck.

I see I have already added this but added it again just in case. x
Di

julesmum23 · 30 January 2009 at 12:48PM

Sorry for bringing this back up but this is exactly the same as me, I have been told that I would have to have a new loan costing just as much as the one that I would like to cancel the PPI.

My circumstances have changed and I will no longer be able to claim this insurance.

ChrispyDuck · 1 February 2009 at 12:06PM

Hi Guys,

Can give you a small update on this now:

Have sent off letter 1 stating cancellation and mis-sold arguments.

Received back standard "we are looking into your complaint" letter and questionnaire, stating they would be aiming to have a final response by Feb 10th.

Sent back unfilled in questionnaire, new letter stating they should already have all this information, and copy of previous letter.

Waiting for a response back now.

I notice Barclays have just agreed to stop selling single premium PPI, and that the FSA is now restricting the point of sale PPI totally so when we receive the next letter back I will no doubt write back including these points in our argument.

Cheers guys ... fingers crossed

)

di3004 · 1 February 2009 at 3:37PM

julesmum23 wrote: »

Sorry for bringing this back up but this is exactly the same as me, I have been told that I would have to have a new loan costing just as much as the one that I would like to cancel the PPI.

My circumstances have changed and I will no longer be able to claim this insurance.

Hi there
If you don't mind me asking, do you mean can no longer reclaim the PPI because of your change of circumstances, because of what reason?
Have you made a claim for some reason such as sickness or unemployment?
Cheers.

di3004 · 1 February 2009 at 3:37PM

ChrispyDuck wrote: »

Hi Guys,

Can give you a small update on this now:

Have sent off letter 1 stating cancellation and mis-sold arguments.

Received back standard "we are looking into your complaint" letter and questionnaire, stating they would be aiming to have a final response by Feb 10th.

Sent back unfilled in questionnaire, new letter stating they should already have all this information, and copy of previous letter.

Waiting for a response back now.

I notice Barclays have just agreed to stop selling single premium PPI, and that the FSA is now restricting the point of sale PPI totally so when we receive the next letter back I will no doubt write back including these points in our argument.

Cheers guys ... fingers crossed )

Hi there

Thanks for posting up to let us know, fingers crossed it will be a good outcome, please let us now how you get on, thanks.;)

julesmum23 · 2 February 2009 at 7:07PM

I am fully self employed now.

Barclays Loan PPI Cancelling/Reclaim - Advice appreciated

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