Barclaycard Loan - Lied about PPI

ethereal

Hi, This may have come up before but as the thread discussions are so long and in several places I hope you don't mind if I start a new thread? About 3 1/2 years ago we took out a secure loan with Barclaycard, it was for 10 years but they said if we agreed to their PPI, after five years the insurance cover would mature and we would get a big payout. He said we could spend the money on whatever we wanted but hinted that most people pay off the remainder of the loan so in effect making a 10 year loan into a five year one. We signed up and have been paying £88 extra a month with our loan payments and soon the five years will be up. We found out today, by calling them, that our "big payout" will only be about £6k and that so far, out of the £12k we have paid, only £3k of that has gone onto the loan, leaving the present balance of the loan at £25k!!!!!! We forwarded a complaint immediately over the phone and are waiting to hear a response which should be in the next five days. Has this happened to anyone else with Barclaycard? :mad:

di3004

ethereal wrote: »

Hi, This may have come up before but as the thread discussions are so long and in several places I hope you don't mind if I start a new thread? About 3 1/2 years ago we took out a secure loan with Barclaycard, it was for 10 years but they said if we agreed to their PPI, after five years the insurance cover would mature and we would get a big payout. He said we could spend the money on whatever we wanted but hinted that most people pay off the remainder of the loan so in effect making a 10 year loan into a five year one. We signed up and have been paying £88 extra a month with our loan payments and soon the five years will be up. We found out today, by calling them, that our "big payout" will only be about £6k and that so far, out of the £12k we have paid, only £3k of that has gone onto the loan, leaving the present balance of the loan at £25k!!!!!! We forwarded a complaint immediately over the phone and are waiting to hear a response which should be in the next five days. Has this happened to anyone else with Barclaycard? :mad:

Hi there

If you can try to keep everything in writing, this then would be your back up if you were not happy with the outcome, you can move this on to the FOS, where you can give them copies of all correspondence to back your case.

I would defo go for the full whack plus interest, if settled, if the loan is still active and cancelled, you can reclaim for what you have paid in ppi plus interest.

There are many who have complaints with Barclays, good luck and keep us posted.;)

maxdp

ethereal wrote: »

Hi, This may have come up before but as the thread discussions are so long and in several places I hope you don't mind if I start a new thread? About 3 1/2 years ago we took out a secure loan with Barclaycard, it was for 10 years but they said if we agreed to their PPI, after five years the insurance cover would mature and we would get a big payout. He said we could spend the money on whatever we wanted but hinted that most people pay off the remainder of the loan so in effect making a 10 year loan into a five year one. We signed up and have been paying £88 extra a month with our loan payments and soon the five years will be up. We found out today, by calling them, that our "big payout" will only be about £6k and that so far, out of the £12k we have paid, only £3k of that has gone onto the loan, leaving the present balance of the loan at £25k!!!!!! We forwarded a complaint immediately over the phone and are waiting to hear a response which should be in the next five days. Has this happened to anyone else with Barclaycard? :mad:

Hi There

I have had 3 barclaycard Loans all with PPI gone through FOS and have received a refund for those costs. I have not heard before about the way your loan was sold. Perhaps somebody else here can help on that one. It does though sound as if you have a complaint.

If there do not refund then say you will refer the complaint to the FOS. Good Luck and keep us posted.

thomaj3

ethereal wrote: »

Hi, This may have come up before but as the thread discussions are so long and in several places I hope you don't mind if I start a new thread? About 3 1/2 years ago we took out a secure loan with Barclaycard, it was for 10 years but they said if we agreed to their PPI, after five years the insurance cover would mature and we would get a big payout. He said we could spend the money on whatever we wanted but hinted that most people pay off the remainder of the loan so in effect making a 10 year loan into a five year one. We signed up and have been paying £88 extra a month with our loan payments and soon the five years will be up. We found out today, by calling them, that our "big payout" will only be about £6k and that so far, out of the £12k we have paid, only £3k of that has gone onto the loan, leaving the present balance of the loan at £25k!!!!!! We forwarded a complaint immediately over the phone and are waiting to hear a response which should be in the next five days. Has this happened to anyone else with Barclaycard? :mad:

It sounds like the very same person visited me..

I took out a 60K loan (Barclays Secureloan) over 240 months (25yrs) with 15K PPI single premium, told the exact same thing that after 60 months (5yrs) without claiming I would be entitled to a refund of the premium.

I just found out today that, the PPI is only valid for the 60 months, after that if I'm made unemployed I will have no insurance to cover...:mad:

di3004

thomaj3 wrote: »

It sounds like the very same person visited me..

I took out a 60K loan (Barclays Secureloan) over 240 months (25yrs) with 15K PPI single premium, told the exact same thing that after 60 months (5yrs) without claiming I would be entitled to a refund of the premium.

I just found out today that, the PPI is only valid for the 60 months, after that if I'm made unemployed I will have no insurance to cover...:mad:

Hi there

Have you tried to reclaim on this yet?

ethereal

We are definitely reclaiming. We complained immediately over the phone at the time we were told the bad news, and they said they would look into it. A week later we got a letter explaining they did not feel that we had been mis-sold the PPI and it was quite clear from our terms and conditions what we had signed for that basically the refund was only the value of the premium (6k) and not the equivalent to our payments (12k). Isn't that what a refund is after all? Straight away I downloaded the second template letter from this site and added that we would not have agreed to sign for their insurance unless we had been certain that it was to our advantage (we knew insurance could be got cheaper elsewhere). I gave them the fourteen days to respond.

Ledespencer

My wife and I took out a secure Barclayloan a couple of years ago. Like some of the other people who posted here we were attracted by the offer to get a rebate of the payment protection insurance premiums if we hadn't claimed after five years. This is described as "cashback" in their literature. So far so good.

Our circumstances have changed and as we need to sell the house we have necessarily looked into settling the loan. There is a charge on the property. We were astonished to discover that we'd get practically nothing of the more than £8,000 PPI premium back! Mind you - not as astonished as we were to discover that the term of the insurance is only 5 years! We thought we'd be covered for 10 years - the full term of the loan.

I'd be grateful for any suggestions about (1) the possibility of a mis-selling claim and or (2) is there a way of contiuing the loan even if I sell the house?

Many thanks and best of luck to all with their PPI claims.

di3004

Ledespencer wrote: »

My wife and I took out a secure Barclayloan a couple of years ago. Like some of the other people who posted here we were attracted by the offer to get a rebate of the payment protection insurance premiums if we hadn't claimed after five years. This is described as "cashback" in their literature. So far so good.

Our circumstances have changed and as we need to sell the house we have necessarily looked into settling the loan. There is a charge on the property. We were astonished to discover that we'd get practically nothing of the more than £8,000 PPI premium back! Mind you - not as astonished as we were to discover that the term of the insurance is only 5 years! We thought we'd be covered for 10 years - the full term of the loan.

I'd be grateful for any suggestions about (1) the possibility of a mis-selling claim and or (2) is there a way of contiuing the loan even if I sell the house?

Many thanks and best of luck to all with their PPI claims.

Hi there
I'm sure you will receive some advice on this one, but if you sell up it may be recommended that you pay for an finance you may also have, but please do not quote me on this.
If you were mis sold the PPI you can of course try to reclaim on this, whether you settle the loan or not, it makes no difference.

For more info on PPI, with useful guidelines, templates a list of reasons and so on check out the details on the link here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Good luck.;)

ethereal

The letter we had back from Barclaycard says, "Section 18 of your terms and conditions states that you may be entitled to a cashback payment of an amount equivalent to your insurance premium."
It's the words 'may be' and 'an amount equivalent to' that worry me! The letter goes on to say, "In October 2010 we will assess your eligibility to the cashback refund of premiums." So it looks like there's no guarantee we'd get it anyway!
Also the cashback premium DOES NOT include any insurance premium tax and interest charges. In other words we won't receive a refund of any interest paid by us on our premium over the term of the loan! Our PPI is for nearly 7k and so far we've paid about 3.5k of it at £83 a month! :mad:

di3004

ethereal wrote: »

The letter we had back from Barclaycard says, "Section 18 of your terms and conditions states that you may be entitled to a cashback payment of an amount equivalent to your insurance premium."
It's the words 'may be' and 'an amount equivalent to' that worry me! The letter goes on to say, "In October 2010 we will assess your eligibility to the cashback refund of premiums." So it looks like there's no guarantee we'd get it anyway!
Also the cashback premium DOES NOT include any insurance premium tax and interest charges. In other words we won't receive a refund of any interest paid by us on our premium over the term of the loan! Our PPI is for nearly 7k and so far we've paid about 3.5k of it at £83 a month! :mad:

Hi there

These policies are a terrible rip off and the main of us have been though it as well.

Think you know what you should do then.;) Good luck.

ethereal

I have a question though. Do we need to cancel our PPI before we claim through the FOS? If we do, we'll be £83 a month better off but I'm worried that we will lose our potential cashback next year and may not be awarded our money back by the FOS either. Should we continue to pay the PPI just in case we don't win? :think: