Bank Loan

haisey

After living abroad for five years, my wife and I on returning to this country took out a bank loan with Barclays in order to furnish our flat in 2001.
Each year after that we were encouraged by the bank to take small Top Up loans giving us lower monthly repayments over a longer period. My wife will be retiring next year aged 61 and I have been retired for 3 years now aged 68 and we now owe £12,000 with repayments of £309 per month over the next 5 years.
A large slice of this loan goes in the loan protection plan covering unemployment among other things of which I wouldn't have needed after the age of 65 surely.
On our pension things are becoming difficult so we would be obliged for some suggestions to perhaps ease this monthly burden.

haisey

Bokken_2

Welcome to MSE.
Normally putting all or some of the debt onto a 0% credit card would be my advice .How do you feel about that?
There is another forum here"reclaiming bank charges" have a look there as it seems to me they have mis-sold the protection insurance as you are not employed,I am not up to speed on this topic so someone else will be able to give better advice.
It may be that the banking ombusman would be interested in the way the loans were sold to you as you may have a case there.

Xbigman

Definately try for a misselling claim for the PPI and claim back all the costs. If any part of the term of the loan included you and you wifes retirement, when the PPI would have been useless, you can claim all costs back on that basis.

As for the main loan. Did you ever discuss your income in retirement with them?
If you took out the loan(s) and reapplied each time you may not have a case for complaint. If each top up loan was offered without revueing your sutuation you can take a complaint forward on the grounds they missold the loan as your situation made you unsuitable.
Regards


X

haisey

Thank you Xbigman and Bokken,

Your replies are appreciated and helpful. I'll certainly look into this further,

haisey