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PPI on Barclayloan

MillyM_2
MillyM_2 Posts: 12 Forumite
Hi, I'd really appreciate some advice with this. I've got a loan with barclays but have recently fallen behind with repayments and i now have a DMP with CCCS.

When i took out the loan i was convinced to take the PPI (like many others, made to feel like i wouldn't get the loan without it and told the APR would be higher on the loan if i didn't take PPI).

I've tried several times in the past to remove PPI (before i got behind with repayments) but was told it would be treated as a new loan application & my APR would be higher, therefore leaving me no better off, so "you might as well keep it". Tried once again to remove it yesterday and was told it was possible, spent 45 mins on the phone going through a 'new' loan application & was told PPI was now removed, APR had increased but still meant the total amount owed was reduced by £2000. I was totally upfront about my situation (arrears on repayments, DMP etc) with person i dealt with but she said everything had gone through, i needn't do anything else.

Today i got a phone call from barclays saying they couldn't go through with application unless i cleared the arrears, & therefore couldn't remove PPI.

Does anyone know if its possible to remove PPI even if behind with repayments? The PPI is of absolutely no value to me in my present situation. The irony is, i got made redundant last year but couldn't claim off PPI cos i went back to uni instead of looking for a new job:rolleyes:

any help appreciated!

MM
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