Cancelling Barclays PPI = Big headache

DozyDave

Hi,
I need some help on the next step or direction I go on this.
Took out a Barclays loan In March 2005 for £16,000 with PPI.

The statement of price is as the following:

APR 7.9%

Cash Loan: £16,000, Total charge for credit: £7,059.20, Total amount payable: £23,059.20, Monthly repayment: £192.16 over 120.

Premium Loan: £5,301.96, Total charge for credit: £2338.44, Total amount payable: £7640.40, Monthly repayment: £63.67 over 120.
= £255.83 per month.

To try and save on monthly out goings I went into the bank to cancel the PPI cover, (as I now know I can get cover else where at about £11 per month.) In the original agreement, Terms and Conditions, state ending the agreement or Barclayloan protection would mean making a new loan application. We asked the advisor about this and they told me the this had change now and led me to belive that the £192.16 monthly payments would remain, even gave me quote on insurance cover of £15.60 per month to cover this.

Four days later A new Barclayloan agreement dropped through the letter box. For the following shock,

APR 7.9%

Loan amount: £9972.95, Total charge for credit: 1696.89, Total amount to be repaid: £11669.84, Monthly repayment £238.16 over 49, Intrest rate 7.766% per annum fixed.

I went into the bank to ask why we seem to be paying intrest upon intrest and they basically told me that I wan't ,and that we had recieved a refund of about £800.

This smells to me of something very wrong, I'm now considering claimming back PPI, would love some advice on what to do next.

Ohhh by the way, I've not signed the new agreement and don't intend to.

Thanks for any help.

DozyDave

Right, first step. Questionnaire filled in, going recorded delivery tomorrow.

What time scale will I be expecting the bank to reply to this? Have they got a certain number of days or weeks?

amersall

Hi there, you give them 8 weeks to respond.