Loan Insurance?

Paul_Andrews1

Took a loan out with Barclays a year or so ago which paid off an existing loan and gave us some extra cash too. The original loan had insurance which we never used but when i enquired about help with payment because of coming out of work,was told that we werent covered and could only get our repayments reduced if we `missed` a payment,then we would get blacklisted??? Does anyone know a way around this?
Ithankyou.
Paul.

~Beanie~

So I'm guessing that you didn't take out insurance on the second loan then?

It doesn't matter that you never used the insurance on the first loan, unless you took it out on the second then you aren't covered.

jonesMUFCforever

.............And you would have been refunded a proportion of the unused PPI when the first loan was closed off.
This would have reduced the original loan.

Paul_Andrews1

~Beanie~ wrote: »

So I'm guessing that you didn't take out insurance on the second loan then?

It doesn't matter that you never used the insurance on the first loan, unless you took it out on the second then you aren't covered.

Hi Beanie, We only found out that there was no insurance on recent loan a few weeks ago. First loan was about 2006 with insurance and second one was March 2010. We found out, in branch that they stopped doing insurance a while back but never told us!

Thanks.

Paul_Andrews1

Paul_Andrews1 wrote: »

Hi Beanie, We only found out that there was no insurance on recent loan a few weeks ago. First loan was about 2006 with insurance and second one was March 2010. We found out, in branch that they stopped doing insurance a while back but never told us!

Thanks.

jonesMUFCforever wrote: »

.............And you would have been refunded a proportion of the unused PPI when the first loan was closed off.
This would have reduced the original loan.

No mention of any refund of unused PPI`s and no paperwork either.

P.s This is the first time on ay forum so apologies if I reply incorrectly to anyone. Thanks.

jonesMUFCforever

Did you get a statement of the loan that was repaid and replaced by the new one.
If not ask them for a copy.

Paul_Andrews1

jonesMUFCforever wrote: »

Did you get a statement of the loan that was repaid and replaced by the new one.
If not ask them for a copy.

Our paperwork is in storage for a short while but I`m 99% sure there was no refund of any kind as I would have definitely remembered that.
Do you know how we would find that out? Go into a branch maybe?
Cheers.

Hax

I suspect that rather than getting a refund, you will have simply had a reduced settlement figure.

For example, say your monthly repayments were £250 including the PPI payments and you had 24 months to go. That would mean that you would pay £6000 if you continued with your original repayments. When you asked for the settlement figure, they may have quoted you a smaller figure such as £5000 which would cover the outstanding capital and any early settlement charge. The difference in the two amounts will be the cost of interest on the outstanding principal over the remaining term, as well as the cost of the PPI over the remaining term.