Barclays PPI

robbiepeck

My complaint was due to the cash back - I was made redundant in 09 & couldn't claim on it, or stop it. I made a complaint back then & they rejected it.

They put my interest rate up so much (due to the cost of borrowing) & it was increasrd my monthly payments by 20%.

I was due a cash back for my PPI in March, but they wouldn't pay it - due to the reduced agreement we had - this is when I made the second claim.

I was originally told (when I took the loan out) - the PPI was for 5 years & I'd then get what I had paid if I didn't make a claim - PPI was £15,100 & I'd get £15,100.

I didn't realise I'd be paying for the £15,100, which was added to the loan up front for 25 years. (total payment for PPI £45,000) - after 5 years, I have only paid £7,500 (contracted monthly payments)

This is why Barclays will not be paing as much as people think by this move. In theory, if you had taken a payment in 5-8 years ago, you could end up paying money back to them & then they are just righting off future payments.

I think with this in mind, they're clever. cost to investigate each case v paying up = Barclays put £1billion aside & Lloyds £3billion. - differance = Barclays is their cash, Lloyds is ours!

amersall

This is why Barclays will not be paing as much as people think by this move. In theory, if you had taken a payment in 5-8 years ago, you could end up paying money back to them & then they are just righting off future payments.

Where did you hear this?.

di3004

I've not heard that before either, and going by the write up's they state they will refund in full, as below.

http://www.pabnews.com/10745/barclays-agrees-to-automatic-ppi-refunds/

UK – Barclays is the first bank to commit to paying out compensation to every single person who made a complaint about the mis-selling of payment protection insurance (PPI) before 20th April, 2011.
The banking customers will receive a full reimbursement made up from the total value of the premiums paid, plus 8 per cent interest. Barclays has said the reason behind the move on PPI is to clear the backlog and allow it to focus on new cases.

Earlier this year the banking industry lost its challenge to the new rules on the sale of PPI. The regulations were enforced by the Financial Services Authority (FSA) and the Financial Ombudsman Services (FOS) due to the huge problems customers have suffered with the selling of PPI.

One of the rules, with the biggest consequence, is that sellers must review all sales of previous PPI policies to establish whether the customer has a case for mis-selling. There is an ongoing judicial review for Barclays’ customers and some have had a very long wait. Barclays has decided to contact the customers that were put on hold and settle their complaint as a “gesture of goodwill”.

The FSA has provided three banks (including Barclays) additional time to deal with complaints surrounding the mis-selling of PPI due to the scale of the problem. The FOS claims to have received over 40,000 more complaints concerning those whose original complaints were turned down.

Throughout the time of the legal battle the banks put thousands of complaints on hold and set aside cash to cover the compensation pay out. Barclays is the first bank to offer automatic refunds to customers who complained before 20th April. Those customers who have lodged a formal complaint since this date will be assessed on merit.

In my opinion if this is the case of them not refunding in full or as what have been confirmed previously then I would complain on this too..........so if anyone are having these problems I would be contacting the FSA, and the CEO of Barclays.

Niggly_2

robbiepeck wrote: »

My complaint was due to the cash back - I was made redundant in 09 & couldn't claim on it, or stop it. I made a complaint back then & they rejected it.

They put my interest rate up so much (due to the cost of borrowing) & it was increasrd my monthly payments by 20%.

I was due a cash back for my PPI in March, but they wouldn't pay it - due to the reduced agreement we had - this is when I made the second claim.

I was originally told (when I took the loan out) - the PPI was for 5 years & I'd then get what I had paid if I didn't make a claim - PPI was £15,100 & I'd get £15,100.

I didn't realise I'd be paying for the £15,100, which was added to the loan up front for 25 years. (total payment for PPI £45,000) - after 5 years, I have only paid £7,500 (contracted monthly payments)

This is why Barclays will not be paing as much as people think by this move. In theory, if you had taken a payment in 5-8 years ago, you could end up paying money back to them & then they are just righting off future payments.

I think with this in mind, they're clever. cost to investigate each case v paying up = Barclays put £1billion aside & Lloyds £3billion. - differance = Barclays is their cash, Lloyds is ours!

I think I know where you are coming from. You have put a claim in because they would not honour the policy when you were made redundent. They also refused payment of the casback in March because you have a reduced payment agreement. They have written to you to say that you have won the claim but payments have to be made to settle the arrears before thay pay you out???. Having seen another couples explaination of the options to refund using just abbreviations I understand you are angry.

However let me assure you that the payment you are owed is significant but without an accurate description of the refund option they have mad you any help I can give is guesswork.

The ppi contribution is £125 per month. You have paid that contribution for 60 months as of March so yes you are due back the premium of £7500. However you are also due 8% interest on each payment and thats another £1745 as of March. You will also see your repayments fall by £125 per month saving a further £30000 in interest payments. These figs are 5 years only.

I only wish I knew your plight in March. I have helped a number of people reclaim their casback even though they have more than 3 months arrears/reduced payment echedules. If FP dont specifically warn you at the time that this will affect the cash back they have to pay the cash back.

N

robbiepeck

Amersall & di3004 - its not something I've heard, its just doing simple calculations....

PPI put on the loan up front £15,100
Monthly payment - £125 for 300 months

Money Barclays payout after 5 years of not claiming £15,100

8% PA extra paid by Barclays when settling will be (12 x £125 = £1,500 8% = £120)

Amount paid to Barclays:
5yrs - 60 payments of £125 = £7,500
Barclays pay out £15,100

5 years
PPI claim pays back - (8% PA £120 x 5) £625
£7,500 + £625 = £8,125
You would pay them back (£15,100 - £8,125) = £6,975
(Then reduce payments by £125 pm for remaining)

6 years

PPI claim pays back - (8% PA £120 x 6) £720
£9,000 + £720 = £9,720
You would pay them back (£15,100 - £9,720) = £5,380
(Then reduce payments by £125 pm for remaining)

7 years

PPI claim pays back - (8% PA £120 x 7) £840
£10,500 + £840 = £11,340
You would pay them back (£15,100 - £11,340) = £3,760
(Then reduce payments by £125 pm for remaining)

I may be totally wrong with my calculations, but not normally!

My agreement with Barclays ment the reduction they gave me, they've put on the end of the loan.

Niggly_2

Your interest calculations are way out. You get 8% on each payment you make 125 x 8%/12 x 50 for the first payment.

If you win the claim you will have been totally compensated by all YOUR PAYMENTS being returned plus 8% on each one and your future payments reduce. I cant see what more first plus could do in this case.

What you could do and in your case I really think you have enough justification is to claim extra compensation for your distress. They have not only mis-sold a policy but when you tried to claim for unemployment they threw the claim back at you. The FOS would be very interested to hear about this. They would require details why but you should persue FP if a full refund of premiums plus interest plus a reduction in future costs doesnt seem comparartive redress

janerobinson55

I had my letter off barclays group (first plus) about 7 weeks ago saying that we would soon get an offer letter regarding our PPI claim. We have not heard anything since, has anybody else had their offer letter

Thanks Jane

Susie1966

I spoke to the Customer relations manager on Wednesday after receiving the letter telling us not to ring them that they were on target etc etc etc. I was told that because my loan was current and would need rescheduling that there was no way it would be sorted by 31 Auguest 2011. He was sorry that I was upset that Barclays are lying to their customers but there was nothing he could do. I emailed the CEO but have heard nothing since. I'm not holding my breath for the 31st.

Dan_Iggulden

janerobinson55 wrote: »

I had my letter off barclays group (first plus) about 7 weeks ago saying that we would soon get an offer letter regarding our PPI claim. We have not heard anything since, has anybody else had their offer letter

Thanks Jane

A few people have had offers from Barclays, me included.
I sent off the acceptance which they received on Monday this week, will probably have to wait upto another 4 weeks for payment to be made.

Rebecca01

It's interesting to read this thread again, I wrote that I would probably have to wait until 31st August . Pah!!! How optimistic was I? It doesn't seem that We will hear before this . I read my letter again today from the FOS on 7 th July . It says they will wait 14 days to see if we accept the terms , then they will inform Barclays and then they have 8 weeks after that to make the offer. So that takes us to mid September. So much for 31st they stated on the news. Great stalling tactic , and within FOS guidelines.