Barclaycard Loan - Lied about PPI

di3004

ethereal wrote: »

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:

Hi there
You can cancel anytime you want to, although do not expect much of a reduction in the monthly repayments, for example, I had a loan for over 25 years this included the 5 year rip off policy, the monthly repayments only reduced by £14 a month, as normally the PPI worked out not far off £90 a month that was added in the loan repayments. So it was only reduced to £514 a month, cancelling about 2 months after the cooling period.
Its not all its made out to be.

I think you will find that many have the same worries as you, these type of policies are frowned upon, and they do not sell these type anymore, the chances are you have a strong case, with just being sold that type of policy and the FOS are used to dealing with these.

If for instance you made a claim for sickness and unemployment, you would not receive the cashback anyway, its a total rip off in more ways than one.

I am hoping someone who had and who have dealings with these will post of of their own experience, which should definately help you decide.;)

ethereal

Yeah, that's what they told us, that if we canceled the policy we would only be saving about £15 a month and yet we are paying a definite amount of £83 a month in PPI which is added to the monthly loan payments so I don't see how this is worked out! Surely if we canceled the insurance we would be £83 a month better off (just as if we had never taken out the PPI in the first place) or is my maths really bad????

marshallka

ethereal wrote: »

Yeah, that's what they told us, that if we canceled the policy we would only be saving about £15 a month and yet we are paying a definite amount of £83 a month in PPI which is added to the monthly loan payments so I don't see how this is worked out! Surely if we canceled the insurance we would be £83 a month better off (just as if we had never taken out the PPI in the first place) or is my maths really bad????

When your PPI premium goes onto the agreement it becomes another loan really so by cancelling it would not save you what you are actually paying towards it per month. They only rebate a small amount of your PPI without the interest that goes on it for the full term so really its the same conditions as your loan you took out. A right rip off.

ethereal

Grrr.... How do they sleep at night? One more question, the letter we had back from them is dated 28th April 2009 and in it, it says that if we wish to proceed to the FOS we must do so within 6 months of this letter. Have we blown it as it is now just over the six months?

di3004

ethereal wrote: »

Grrr.... How do they sleep at night? One more question, the letter we had back from them is dated 28th April 2009 and in it, it says that if we wish to proceed to the FOS we must do so within 6 months of this letter. Have we blown it as it is now just over the six months?

Hi there

Yes your right, it is that of 6 month timescale, was that the final decision letter?

However if in hardship or you may have had good reason for why you did not continue within the 6 month timescale, let the FOS know and ask if they could consider taking on your complaint.
Fingers crossed.;)

ethereal

We didn't go to the FOS because Barclay loan made out we knew exactly what the deal was when we signed up so it we thought it would just be our word against theirs, also they said we wouldn't save any money by canceling the policy only about £15 a month and we were afraid if we canceled we would lose our chance of cash back so we just stuck with it. Think the FOS will think this is worthwhile taking on?

di3004

ethereal wrote: »

We didn't go to the FOS because Barclay loan made out we knew exactly what the deal was when we signed up so it we thought it would just be our word against theirs, also they said we wouldn't save any money by canceling the policy only about £15 a month and we were afraid if we canceled we would lose our chance of cash back so we just stuck with it. Think the FOS will think this is worthwhile taking on?

Hi there
I would give the FOS a call and ask them on this, hopefully they will take this one, just explain what you have above, good luck.;)
http://www.financial-ombudsman.org.uk/contact/index.html
Good luck.

ethereal

Hi, I'm back again! We waited and accepted the insurance rebate. It wasn't anywhere near enough to pay off the remainder of the loan as we were told when taking it out! I'm still angry at the miss-selling and lies. Also, my husband work would have paid 12 months sick pay so we probably didn't even need the policy. It's taken a few years to get my act together again after starting a family but I want to see this through along with our credit cards etc. I take it we'd have to go back to Barclaycard again though before going to the Ombudsman as it's been a long time since we last contacted them.
Also we no longer have any paperwork having moved house twice since. We just have a letter confirming that the loan was paid off in Jan 2012.

magpiecottage

You received a "Final Response" from Barclays in 2009. This will have told you to contact FOS - and that you had 6 months to do so.

If you go to FOS now, it will ask Barclays if it is prepared to waive the six month limit.

When I met FOS a couple of months ago, somebody working for them said they could not see why any institution would choose to waive the limit.

So that means, if you want FOS to consider the complaint you will need to show that the are exceptional reasons why FOS should overrule Barclays' refusal to waive the limit.

However, you could try contacting Barclays and arguing that your case was one that was incorrectly settled and should be re-opened in the light of FCA instructions to revisit complaints - effectively making a complaint against the complaints team.

That would start the whole process again.

ethereal

"in the light of FCA instructions to revisit complaints - effectively making a complaint against the complaints team."
Sorry, I don't mean to sound thick, my head is spinning from reading so many pages but what is the FCA instructions? ��
Oh and one more question, sorry... if we accepted the insurance payout after 5 years would we still have a claim on the miss-sold PPI?