Barclays PPI Claim

davetheman

We took out a £60,000 secured loan with Barclays over 25 years around 4 y ears ago, we also ended up with PPI insurance on this the premium for this is around £14,500 which has been added to the £60,000 loan, current balance and £68,000.

Therefore we are also paying interest on this. If we were to go down the miss sold PPI insurance and win the case would the £14,500 come of the loan and would we be entitled to a refund on what we have paid on the PPI?

dunstonh

If we were to go down the miss sold PPI insurance and win the case would the £14,500 come of the loan and would we be entitled to a refund on what we have paid on the PPI?

They are allowed to pay the redress into the loan to put you in the position you would have been had the PPI not been taken in the first place. The choice it theirs.

davetheman

So are you saying the loan balance would be around £53,500 (£60,000 minus the £6,500 paid off the loan) Realise rougth calculations due to interest, would we get anything back for what has been paid into the PPI

lil_tiger

you may get the 8% int returned to you, however the loan would need to be restructured, they would take the PPI, and the interest paid so far off of the loan, then have to set you up another loan for the remaining amount (restructure).

amersall

If you win mis sell (i think you have a very good chance as this ppi was front loaded), then the ppi total will be taken off the balance of the loan, you will recieve the monthly ppi payments made to date back to you less any arrears if you have any, but some of this will be put back into the loan, as the ppi is no longer on your loan so you should not have benefited from any reduction to the loan with regards the ppi payments, and your loan will be reduced by the ppi amount each month.

lil_tiger

amersall wrote: »

If you win mis sell (i think you have a very good chance as this ppi was front loaded), then the ppi total will be taken off the balance of the loan, you will recieve the monthly ppi payments made to date back to you less any arrears if you have any, but some of this will be put back into the loan, as the ppi is no longer on your loan so you should not have benefited from any reduction to the loan with regards the ppi payments, and your loan will be reduced by the ppi amount each month.

with the loan being only 4ish years old, OP should have had some kind of demands and needs done-meaning Barclays will have asked questions to find out if the PPI would be useful etc, OP should have signed this, so the mere fact that the PPI is front loaded wont be the only factor taken into consideration when assessing the claim

davetheman

Thanks, sounds like I should proceed with this, should I contact the back saying I feel mis sold due to the PPI was front loaded, I did contact barclays a couple of years ago saying I felt it was mis sold and they came back saying it was not.

dunstonh

Black Horse recently won a court case on single premium front loaded PPI. So, whilst most of us here think its a bad thing, legally it may not be and its quite possible the implications of that ripple through. Indeed, the ruling was in the high court so its binding on county courts. The FOS generally follows the courts in its rulings as well. Although its not known if it is having an impact or not. The judicial review on PPI may be hiding other trends.

amersall

lil_tiger wrote: »

with the loan being only 4ish years old, OP should have had some kind of demands and needs done-meaning Barclays will have asked questions to find out if the PPI would be useful etc, OP should have signed this, so the mere fact that the PPI is front loaded wont be the only factor taken into consideration when assessing the claim

I know this, but if i am correct (the op should confirm this) the ppi only lasts for 5 years but you still pay this over the term of the loan with interest, if op was offered the ppi as "cashback" at 5 years, they would not have been told that this would still be on the loan to term with interest, the person who sold this ppi would not have explained the full implications of this ppi, so the op would not have been able to make a informed decision when taking this. This is one of the worst types of mis sell of ppi and the fos dont look too kindly on this. If barclays were selling this ppi as their umbrella company FP did
then i will bet my life that they would have taken up to 70% commission for this product, so with that incentive, they would have told their sales people to "sell sell sell" what better way to misrepresent the true impact of this ppi to the consumer?. I know this as i have "been there done that, and bought the t shirt". That is why i think the op has a good case for mis sell.

davetheman

Yes the PPI does indeed only last for 5 years, and this was not fully understood at the time of taking out, and yes due a cash back at 5 years of the polciy amount of £14,500 however when I now work out how much I will pay back for this, it is pointless

So what is my best move to try and sort this?

amersall

davetheman wrote: »

Yes the PPI does indeed only last for 5 years, and this was not fully understood at the time of taking out, and yes due a cash back at 5 years of the polciy amount of £14,500 however when I now work out how much I will pay back for this, it is pointless

So what is my best move to try and sort this?

You write a letter to barclays, you can use the template letter on this site. http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
or if you feel more comfortable with writing your own letter then do that, as if you have to take this to fos then you will only have to fill the fos form in again. You say to barclays, you believe you were mis sold this because.
1) you were not told this ppi only covered you for 5 years, but you would pay this to loan end with interest.
2) after 5 years you were told you could claim the ppi amount back, but were not told that this amount would still be on your loan with interest.
3) you do not believe that you were given enough information regarding this ppi to make a informed decision, as if you had, you would not have taken this ppi knowing the full implications,and would have looked for cover elsewhere.
Send this recorded delivery and give them 8 weeks to respond. Hope this helps.