Barclays ppi

TGIB

Hi, I took a loan out with Barclays in about 2005 and foolishly took out ppi, in 2006 I asked to cancel it in my branch, i was told that because my credit rating had gone down that i wasnt accepted for a 'new' loan so therefore i couldnt cancel it.
After about 2 years (2008) i decided i wanted to get rid of it again so went into another branch. This time i was told that i could get a new loan, without ppi, but because of the increase in interest on this 'new' loan it worked out the exact amount i was already paying so was therefore pointless me cancelling. I recently enquired about paying off the loan onto a 0% card and was told id get back about £100 back from ppi of about £1500 if the loan was settled early. One other thing is that im sure the ppi was loaded on top when it was taken out and that I am paying interest on it now still.
Any help would be much appreciated on which, if any of these points i could use against them.

P.S. I did try to claim on the loan once when out of work but never went through as i soon got back to work and some of the requests i got were a bit ridiculous.

di3004

TGIB wrote: »

Hi, I took a loan out with Barclays in about 2005 and foolishly took out ppi, in 2006 I asked to cancel it in my branch, i was told that because my credit rating had gone down that i wasnt accepted for a 'new' loan so therefore i couldnt cancel it.
After about 2 years (2008) i decided i wanted to get rid of it again so went into another branch. This time i was told that i could get a new loan, without ppi, but because of the increase in interest on this 'new' loan it worked out the exact amount i was already paying so was therefore pointless me cancelling. I recently enquired about paying off the loan onto a 0% card and was told id get back about £100 back from ppi of about £1500 if the loan was settled early. One other thing is that im sure the ppi was loaded on top when it was taken out and that I am paying interest on it now still.
Any help would be much appreciated on which, if any of these points i could use against them.

P.S. I did try to claim on the loan once when out of work but never went through as i soon got back to work and some of the requests i got were a bit ridiculous.

Hi there

So you were aware of the PPI, but you were told you could not cancel it or your credit rating would go down?
I don't think this is right to be honest, and its not fair to be told that, that is something I think you have grounds for complaint.

I would write to them and raise every point you have on your post above, tell them you want to reclaim and complaining on the way this was sold to you.

There are many reasons of mis selling, check out this link here hun:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

This is interesting, and there is also a template letter on the link, but I would write in your own words, they have 8 weeks to respond, another letter maybe required if not successful first time round, or until you exhaust the complaints procedures, and post by recorded delivey for your proof and to keep a check on dates/timescales they have.

If still not successful by the final response you should be eligible to take your complaint to the finanical ombudsman service.

We wish you luck and wish you success here, please keep us updated, and if you require any further help just give us a yell.;)

TGIB

Thanks for the help. On your first question, i was aware of the ppi when i first took out the loan (2005) but after a year decided i wanted to cancel it because i didnt really need it and because i live with my parents and they told me to cancel it as theyd help with any difficulties. When i tried to cancel it in 2006 they told me my credit rating wouldnt allow me to take out another loan (without ppi) and therefore i was forced to continue paying it.
I was under the impression that they have to process it at the same interest rate and arnt supposed to create a new loan/application when your only wanting to cancel the ppi??
Thanks again

maxdp

TGIB wrote: »

Thanks for the help. On your first question, i was aware of the ppi when i first took out the loan (2005) but after a year decided i wanted to cancel it because i didnt really need it and because i live with my parents and they told me to cancel it as theyd help with any difficulties. When i tried to cancel it in 2006 they told me my credit rating wouldnt allow me to take out another loan (without ppi) and therefore i was forced to continue paying it.
I was under the impression that they have to process it at the same interest rate and arnt supposed to create a new loan/application when your only wanting to cancel the ppi??
Thanks again

Hi There.

If you cancel it you have to take out a new loan you cannot just cancel the PPI as that plus its interest is part of the loan.

They were wrong telling you that you could not cancel it because of credit rating etc. What they are supposed to do now is to close the account and then give you another loan with the same of less interest. It is under the Treating Customers Fairly Charter the banks have.

Hope that answers your questions.

TGIB

Thanks alot both of you, i will be getting on with this now and report back my progress.