Have I been Mis-sold a Secured Loan with PPI?

jools116

Hoping someone somewhere can advise on this one. Slightly different to the mis-selling of PPI. 5 Years ago I took out a secured loan for 20 years plus with Barclaycard to consolidate debts etc. I was sold PPI, I can remember the phonecall like it was yesterday. The guy sold it to me over the phone with quite a good selling point that the PPI was only valid for 5 yrs and when it reached its 5th birthday, as long as no PPI claim had been made I would be entitled to a refund of all the PPI payments made less any interest on the PPI and that if this was the case, my monthly instalment would then reduce by the amount of the PPI as I would no longer be paying for this. HOWEVER...........

I wrote to Barclaycard last week and telephoned them this morning to check they have received my letter etc. They confirm it is on file and that I am entitled to a refund of all the PPI payments made over the last 5 years. I then asked them what my new monthly instalment on the loan would be as the PPI has now expired. Now here is the problem................ They tell me that the monthly loan instalment remains the same, as they have paid for the insurance for me upfront when the loan was taken out. I argued with them and said that can not be right. How can I carry on paying for a policy for another 20 years that I can not claim on and I am not only continuing to pay the premium but interest on that too!! Talk about daylight robbery. I use to work in finance, and there is no way I would of gone ahead with this had I been told the monthly instalment wouldn't change ie be less in 5 years time. Not only do I feel the PPI has been mis-sold but the loan has been mis-sold too! Where on earth do I stand on this one, please can someone advise thank you.

somethingcorporate

jools116 wrote: »

Hoping someone somewhere can advise on this one. Slightly different to the mis-selling of PPI. 5 Years ago I took out a secured loan for 20 years plus with Barclaycard to consolidate debts etc. I was sold PPI, I can remember the phonecall like it was yesterday. The guy sold it to me over the phone with quite a good selling point that the PPI was only valid for 5 yrs and when it reached its 5th birthday, as long as no PPI claim had been made I would be entitled to a refund of all the PPI payments made less any interest on the PPI and that if this was the case, my monthly instalment would then reduce by the amount of the PPI as I would no longer be paying for this. HOWEVER...........

I wrote to Barclaycard last week and telephoned them this morning to check they have received my letter etc. They confirm it is on file and that I am entitled to a refund of all the PPI payments made over the last 5 years. I then asked them what my new monthly instalment on the loan would be as the PPI has now expired. Now here is the problem................ They tell me that the monthly loan instalment remains the same, as they have paid for the insurance for me upfront when the loan was taken out. I argued with them and said that can not be right. How can I carry on paying for a policy for another 20 years that I can not claim on and I am not only continuing to pay the premium but interest on that too!! Talk about daylight robbery. I use to work in finance, and there is no way I would of gone ahead with this had I been told the monthly instalment wouldn't change ie be less in 5 years time. Not only do I feel the PPI has been mis-sold but the loan has been mis-sold too! Where on earth do I stand on this one, please can someone advise thank you.

What did your contract say?

What do you think is the best outcome here, you get the loan written off? Some how I don't see that happening.

Fiddlestick

jools116 wrote: »

I use to work in finance, and there is no way I would of gone ahead with this had I been told the monthly instalment wouldn't change ie be less in 5 years time. Not only do I feel the PPI has been mis-sold but the loan has been mis-sold too! Where on earth do I stand on this one, please can someone advise thank you.

What does the loan agreement that you signed say?

Xbigman

They almost certainly 'lent' you the money to pay for the PPI up front and rolled it into the loan, so yes you are still paying and that is really how it works. The clue is the refund of PPI payments minus any interest.
Regards




X

masterlumps

it doesnt really matter what the guy on the phone said unfortunately it will depend on what is in writing and im guessing its not that (he said on phone)

amersall

jools116 wrote: »

Hoping someone somewhere can advise on this one. Slightly different to the mis-selling of PPI. 5 Years ago I took out a secured loan for 20 years plus with Barclaycard to consolidate debts etc. I was sold PPI, I can remember the phonecall like it was yesterday. The guy sold it to me over the phone with quite a good selling point that the PPI was only valid for 5 yrs and when it reached its 5th birthday, as long as no PPI claim had been made I would be entitled to a refund of all the PPI payments made less any interest on the PPI and that if this was the case, my monthly instalment would then reduce by the amount of the PPI as I would no longer be paying for this. HOWEVER...........

I wrote to Barclaycard last week and telephoned them this morning to check they have received my letter etc. They confirm it is on file and that I am entitled to a refund of all the PPI payments made over the last 5 years. I then asked them what my new monthly instalment on the loan would be as the PPI has now expired. Now here is the problem................ They tell me that the monthly loan instalment remains the same, as they have paid for the insurance for me upfront when the loan was taken out. I argued with them and said that can not be right. How can I carry on paying for a policy for another 20 years that I can not claim on and I am not only continuing to pay the premium but interest on that too!! Talk about daylight robbery. I use to work in finance, and there is no way I would of gone ahead with this had I been told the monthly instalment wouldn't change ie be less in 5 years time. Not only do I feel the PPI has been mis-sold but the loan has been mis-sold too! Where on earth do I stand on this one, please can someone advise thank you.

Hi there, yes this is what front loaded ppi is, you need to go mis sell with this one as if you win then the ppi is off your loan and you no longer pay interest on this over the whole term. If i were you i would not claim the cash back (you know what this will cost you ) and go mis sell .send a letter to them stating you were mis sold this with your reasons that you have stated here and you want all ppi payments made to date with interest back and the statutory 8% that fos award.

you were mis sold and these front loaded ppi are rip off. The financial ombudsman is upholding 99% of these mis sell ppi.
BTW this is no different to mis sell of ppi, as this is what it is.As for the loan being mis sold i think you would have a long way to go to prove this, you knew what the loan amount was and the repayment (putting the ppi to one side) and you signed for this, you have been mis sold the ppi though and that is the route i would take.

amersall

jools116 wrote: »

Hoping someone somewhere can advise on this one. Slightly different to the mis-selling of PPI. 5 Years ago I took out a secured loan for 20 years plus with Barclaycard to consolidate debts etc. I was sold PPI, I can remember the phonecall like it was yesterday. The guy sold it to me over the phone with quite a good selling point that the PPI was only valid for 5 yrs and when it reached its 5th birthday, as long as no PPI claim had been made I would be entitled to a refund of all the PPI payments made less any interest on the PPI and that if this was the case, my monthly instalment would then reduce by the amount of the PPI as I would no longer be paying for this. HOWEVER...........

I wrote to Barclaycard last week and telephoned them this morning to check they have received my letter etc. They confirm it is on file and that I am entitled to a refund of all the PPI payments made over the last 5 years. I then asked them what my new monthly instalment on the loan would be as the PPI has now expired. Now here is the problem................ They tell me that the monthly loan instalment remains the same, as they have paid for the insurance for me upfront when the loan was taken out. I argued with them and said that can not be right. How can I carry on paying for a policy for another 20 years that I can not claim on and I am not only continuing to pay the premium but interest on that too!! Talk about daylight robbery. I use to work in finance, and there is no way I would of gone ahead with this had I been told the monthly instalment wouldn't change ie be less in 5 years time. Not only do I feel the PPI has been mis-sold but the loan has been mis-sold too! Where on earth do I stand on this one, please can someone advise thank you.

please post on this thread x thank you x
https://forums.moneysavingexpert.com/discussion/1460775

halphy

Good Luck, Go with Amersall send a letter off. U never know x

halphy

Helpful as always Amersall x

jools116

Thanks to everyone for their good advice. I have since checked the loan agreement and unfortunately for me it is front-loaded PPI but I have also read a separate terms and conditions of PPI by the insurers (who happen to Barclay Insurers) and this is quite a grey area, they talk of the loan term being for 5 years, and its terms and conditions do not coincide with the loan terms and conditions. So I will take Amersall's advice and send off a letter because I think there is a very good case that this PPI has been completely mis-sold to me. Many thanks for your help. x