Barclays Advance Account

clearingout

I have a Barclays Advance Account taken out, I believe, in 2003 (might have been 2002). Life has changed a lot and it's costing me a small fortune which I could pay off quicker if I didn't have the PPi on it.

I am pretty sure I agreed to having PPi so not sure I have a leg to stand on from that point of view, although I have to say, I don't think I was told about the fact it was possible to 'insure' myself.

I have tried to get rid of the PPi but have so far been fobbed off. Is this right? Did I take out PPi for the duration of the account? To be clear, this is a product which works much the same as a credit card but is a bank account. There is a pre-agreed limit I can withdraw on a no questions asked basis. It has actually been a useful product meaning I could buy now and find the finance later which, in 2003, was relatively simple with a good credit rating and a god salary but obviously, not so great now! Like credit cards, the interest rate is very high - I have tried getting a new loan to cover what I have outstanding but divorce and corresponding reduction in income and knackered credit rating have made sure this doesn't happen. The product has been withdrawn by Barclays recently - I am not sure if this is a personal withdrawal in that my circumstances are obviously very changed and review of my account has shown this (I am not overdrawn but live very close to the edge with my current account!) or an overall withdrawl across the board.

Anyway, where to go from here? I have discussed on the phone but is it something I need to send off the paperwork for, see if I've signed up for the duration? If I did sign up for the duration, is there anything to be done?

2sides2everystory

I think you may have a rather oddball account which may only have been sold to a small number of people originally and which has been in most customer cases perhaps been dumped for another Barclays offering - Googling for "Barclays Advance" PPI doesn't take you very far other than to one or two other threads asking the same question as you.

Can you tell us more about what sort of bank account it was supposed to be? Was it for example some sort of flexible loan account a bit like a long term overdraft arrangement?

Barclays also sold a product called Overdraft PPI which few people understood and with that, the premiums remained payable even when you were not using the overdraft. The quid pro quo is that claims would also be paid based on the maximum you could have borrowed, irrespective of whether you were actually borrowing it!

Almost all of those were potential mis-sales because the people selling it didn't understand it themselves, nor some of their trainers I reckon

Is "Barclays Advance" the exact full name of the product? Have you any documentation that says so? Perhaps you still receive a regular paper statement same as any other Barclays account? Is that the title they use on it?

clearingout

Hi - thanks for your response. I did try a forum and google search but as you say, not much doing!

The account is exactly as I describe (although perhaps I haven't described it very well) and is called 'Advance Account' on the statements (received monthly with a negative balance and the amounts paid in interest, capital and PPi clearly marked on it). I have a borrowing limit of £12.5k which, in the same way as you would use a credit card, I can simply draw on (or could before they withdrew it!) as and when required. There is a minimum payment each month (like credit cards) and a condition of the account was that it was linked by direct debit to my current account, but you can put in more if you want to, thus paying it off quicker (so higher interest rate but flexible in terms of paying back - just like credit cards). Really, it's a credit card by another name or perhaps the flexible loan account you describe?

It is an account in it's own right - sort code, account number - not an extension of my current or savings accounts with Barclays so no, it's not a long term overdraft or an agreement with Barclays to pay off money owed in some way. It was offered to me via the post on two ocassions - and I took it out the second time only because we were in the process of moving house and it seemed useful to have that amount of cash sloshing about if we needed it. I have managed the account very successfully but have a large amount outstanding due to ex husband wanting some cash for his business (ggrrrr! long story) which I have been left with in the carve up of debts/assets post-divorce. My ex husband ruined our credit ratings but I had my Barclays account from university days, have always had money coming in and out and have managed to hold onto a relationship with them post-separation and divorce by paying everything and keeping out of overdraft. I am not sure my loyalty will really be worth anything to me but I thought it sensible to keep things separate and maintain what was a good relationship with at least one bank!

Obviously if I can get back any of the PPi paid it would be a major bonus but I am more concerned really with just getting it cancelled as in my current situation, I don't really need it (my mum has indicated should I get into trouble financially she is willing to pay it off - I have not taken her up on this as she paid my legal fees and a substantial sum towards me buying a house without a mortgage and I figure as an adult, I need to take some responsibility, but obviously, if I get run over by a bus she'll help me out!).

I guess one question to ask is, if I rock the boat by making a cheeky request for PPi payments returned, do I risk my current account and everything else I hold with them?

clearingout

oh - a quick look at statements (and I'm not great with understanding interest rates etc. etc.) is that the PPi only covers what is outstanding, not the whole £12.5k I could withdraw (not that I can now!), if that makes any difference?

2sides2everystory

Hi again

Sounds a bit like a flexible loan account I once opened with Cahoot (an MSE recommendation around same time you bought the Barclays thing I think because Cahoot were offering cashback on theirs )

Clearly it doesn't make any sense for a family member to be paying a bank credit card interest rates when another family member is willing to act as banker and wont be making anywhere near a reasonable rate on their savings so perhaps you could strike a deal and augment your mother's savings interest and save yourself a fortune. I am sure she'd be horrified to hear what you incur in interest each month.

But back to the PPI. I am not a PPI reclaims expert or tactical advisor but if you had made a misselling claim before April then this would now be one of the cases Barclays would automatically be paying refunds and compensation and interest upon as part of their recent "oh to hell with it let's just pay the punters decision"

But if you think it may have been missold (I choose my words carefully!) then you can still submit a claim and I would have thought that with something as weird and wonderful as this that there would be straightforward scope for a successful misselling reclaim.

I accept you just want to stop the PPI premium but hold fire another day or two to see what the forum regulars think.

Clearly your PPI is working like credit card PPI and not like the overdraft one I mentioned, so that fact may make it easier for the regulars to advise upon.

2sides2everystory

Bump!

Can any of you PPI Reclaim diehards please advise the OP based on the likely good assumption that what she bought online was a flexible loan account very much like a Credit Card loan inasmuch as it was with PPI activated with premium chargeable monthly on the outstanding balance like Credit Card PPI but which PPI Barclays are reluctant to switch off? That last part is especially weird for a monthly premium PPI.

There seem to be no documentation whatever online vis-a-vis Ts & Cs for the account.

I would argue circumstantially that this was always such an obscure Barclays product that beyond the individual who designed it for them, Barclays never understood it themselves, so the likelihood is it should never have been sold.

On that basis, what template letter and/or tactics should the OP use to complain about it to give them the best chance of proper redress?

amersall

If i were the op, i would put a complaint in for mis sell,as you would for any ppi.
This looks to be how cc ppi works.

Look here for reasons for reasons for mis sell and if any/all apply to you then put a claim in.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step2

This is what i would do anyway.

clearingout

do I risk my current account and overall good relationship with Barclays by making a claim? This is a worry to me given knackered credit rating!

amersall

This should not affect your relationship with the bank or your credit rating,as this would be seen to be treating you unfairly and you could complain to FOS.