Barclays Overdraft Payment Protection Insurance Reclaiming

tilleythetoon

Hi All, first post on here

I went it to Barclays to pay some money in and the cashier tried to sell me another account for £15 a month. I said I would listen to the Personal Banker.

When I spoke to the Personal Banker I basically said:

"I've had this discussion with one of your agents on the phone before and its cheaper for me to pay the two charges I get from you (Barclays), the one for using the overdraft facility and the one for the interest on the overdraft, rather than paying £15 a month and the interest on the overdraft"

He proceeded to look into this and told me I pay the interest and on top of that I pay protection insurance on the overdraft, which is not a payment for using the overdraft.

We got talking about this and it turned out it was an optional thing, not that I ever remember asking for it. Why would you pay for something that you would never use. So he cancelled it. Awesome that saves me 12.90 a month now.

I done some googling and found that lots of people are talking about getting these charges refunded?

If this is true how can I get it refunded?

di3004

tilleythetoon wrote: »

Hi All, first post on here

I went it to Barclays to pay some money in and the cashier tried to sell me another account for £15 a month. I said I would listen to the Personal Banker.

When I spoke to the Personal Banker I basically said:

"I've had this discussion with one of your agents on the phone before and its cheaper for me to pay the two charges I get from you (Barclays), the one for using the overdraft facility and the one for the interest on the overdraft, rather than paying £15 a month and the interest on the overdraft"

He proceeded to look into this and told me I pay the interest and on top of that I pay protection insurance on the overdraft, which is not a payment for using the overdraft.

We got talking about this and it turned out it was an optional thing, not that I ever remember asking for it. Why would you pay for something that you would never use. So he cancelled it. Awesome that saves me 12.90 a month now.

I done some googling and found that lots of people are talking about getting these charges refunded?

If this is true how can I get it refunded?

Hi there

And welcome

I believe there are a few posts on the site in regards of this subject and like any other product mis sold your able to make a reclaim.

As for it being optional and your reasons, check the link below to the guidelines of reclaiming...
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim

Maybe others will post as well with some advice for you, good luck.

tilleythetoon

I read that article but assumed that was for loans only and not overdrafts?

di3004

Bumping up so hopefully someone will be along soon to clarify on this.
Good luck.;)

marshallka

tilleythetoon wrote: »

Hi All, first post on here

I went it to Barclays to pay some money in and the cashier tried to sell me another account for £15 a month. I said I would listen to the Personal Banker.

When I spoke to the Personal Banker I basically said:

"I've had this discussion with one of your agents on the phone before and its cheaper for me to pay the two charges I get from you (Barclays), the one for using the overdraft facility and the one for the interest on the overdraft, rather than paying £15 a month and the interest on the overdraft"

He proceeded to look into this and told me I pay the interest and on top of that I pay protection insurance on the overdraft, which is not a payment for using the overdraft.

We got talking about this and it turned out it was an optional thing, not that I ever remember asking for it. Why would you pay for something that you would never use. So he cancelled it. Awesome that saves me 12.90 a month now.

I done some googling and found that lots of people are talking about getting these charges refunded?

If this is true how can I get it refunded?

If you did not want overdraft protection and it was thrown upon you without knowledge then you would be able to complain about it just like with a PPI. The thing is that it would be payable monthly and depending on how long ago this was first applied and whether you should have cancelled it perhaps and how exactly it was taken out? Worth making a complaint though and see how it goes. You can always look at the PPI reclaiming guide but adapt it to overdraft protection and given them 8 weeks to look into this like PPI.

peterbaker

I think this has to have been one of the most misunderstood "PPI" products out there. I read that they are no longer selling it: http://www.barclays.co.uk/Helpsupport/BarclaysPersonalOverdraftPaymentProtectionInsurance/P1242558395093

It actually has nothing whatsoever to do with the amount you may be borrowing on your overdraft from time to time.

There are just three links to the existence of the overdraft:
1. There needed to be an overdraft facility on your account before they could sell it as an add-on to your account.
2. The level monthly premium is charged as a %age rate on your overdraft limit, not your actual (variable) overdraft borrowing.
3. If you managed to claim through involuntary unemployment for example then the monthly benefit you would receive would be exactly 10% of the overdraft limit and no less.
4. It was the only form of PPI the personal bankers had left to sell in the branches after the FSA banned the selling of single premium PPI with effect from the end of January 2009 until sometime in the summer of 2010 when they started selling an 'Income Protection' product I think.

You need not be using the overdraft when you claim and consequently the monthly premium is charged in full whether you use your overdraft or not.

In the words of Michael Caine's Alfie - Not a lotta people know that


And as to whether you ever even for a moment understood it, needed it, wanted it or otherwise truly consented to it, well that's another story

I think very few customers of any bank are charged fees purely for the arrangement of a facility of a simple overdraft. Interest charges are usually levied once a month calculated on a daily usage basis. If you don't use it, it costs nowt.

The fee pay accounts such as the one the cashier tried to sell usually introduce an "interest-free" portion to your overdraft e.g. perhaps the first £300 becomes "free". Of course it isn't exactly free, as you pay for it via the £15 per month or whatever whether you use it or not. At an overdraft APR of say 20%, then I think you would need an interest free overdraft of at least £1000 and to be borrowing at least that £1000 solidly throughout every single month in order to recoup your £15 account fee.

Not a lotta people know that either

tilleythetoon

This is excellent feedback people, it does appear that I have some sort of case here.

Like I said I have no recollection of being sold this or agreeing to this so I am going to send a letter to barclays over the weekend and see where I get with it.

I will try and keep the post up to date

TC1

Evening all.

Just bumped this to see if anyone has had any success with reclaiming this type of protection payment.

My OH has been paying this for years.

Thanks

TC1

[Deleted User]

TC1 wrote: »

Just bumped this to see if anyone has had any success with reclaiming this type of protection payment.

Doubt it.
None of the original participants in this thread have been on the forum since 2010.

tilleythetoon

Well I better update this post,
I sat on this for a while thinking it was going to be really hard to make a claim and then I found an official barclays page on google by searching for barclays reclaim PPI.

I then gave them a phone call on 0845 755 5555 told them everything filled in a standard document which was sent to me in the post and 4 weeks later received £750 winner

So yes you can claim PPI on your overdraft

[Deleted User]

tilleythetoon wrote: »

Well I better update this post,

Well done for returning to the thread (two years on), for returning to the forum and for your successful PPI complaint!:T