Is this worth pursuing? Barclays 1993-2002

kitten

Please could someone advise me if they think this is worth me making a claim? I feel it's a bit of a longshot and I don't want to sour my relationship with Barclays if it's unlikely to succeed as I still bank there.

Back in 1993 my husband and I took out a loan with Barclays, for £17,000 over 15 years, to buy some land next to our house and do some home improvements. It was partially secured on the deeds for the land plus a couple of small insurance policies which matured partway through the loan term if that's relevant. We organised it in-branch, and we were told that we would need to take out some protection in case of illness/loss of earnings etc. A Barclays agent then called at our house one evening and signed us up for their Lifestages Policy, including critical illness cover, which was index-linked so the monthly premiums increased each year. The premiums started at approx £22 per month in 1993 and by 2002 they were £34 per month.

We paid it every month until 2002, when Barclays phoned us out of the blue and said they no longer thought this was the best product for us as our loan was reducing. We called to see them and they cancelled that policy in favour of a Term Assurance Plan via them, through Legal and General.

I can't find the original paperwork for the Lifestages Policy, but I do have some of the annual 'increase in premium' letters they sent us, so can quote policy numbers etc.

Firstly, would this type of product be claimable under PPI, and secondly as we are well outside the six years since it was cancelled and do not have the original paperwork, would it be rejected anyway?

Apologies if this is a silly question, the whole thing is very confusing to me and I had never even considered a claim until I got a call from Wefightanyclaim.com, and researching them led me here! (I did, of course, refuse to talk to wefightanyclaim.com!).

Thanks in advance of any advice x

di3004

Hi there

Yes defo give it a go at least, and do not use a claims company when its only a matter of completing in the reclaiming questionnaire - step 3 below, complete and send to the head or complaints office, keep a copy for yourself as well.
Normally they have 8 weeks but the main of the banks have been given more time due to backlogs, EG: 16 weeks, but they will let you know in writing.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3

Good luck.;)

magpiecottage

Without knowing the full details of this case, my understanding is that, about 18 years ago you took out a secured loan from Barclays.

"Secured" means secured for you, not them. Stop paying and they can take your house away! A lender is entitled to insist on whatever security it likes for a loan (within reason - it can't sell your kids into slavery!), so it can insist on life and/or critical illness cover.

In the early 1990s many lenders would insist on such cover as part of the deal, particularly banks.

At that time, too, the critical illness market in this country was still pretty new and most providers only offered it on what is known as a unit linked whole of life basis. This meant each premium bought investment units, some of which were cashed in each month to pay the premium.

You could (and can still) get life policies on this basis but generally a term assurance policy which guaranteed the premium was and remains the first choice to cover a loan in most instances but, as I say, that was not an option for most advisers to offer in the early 1990s.

By 2002 the market had changed considerably and it was possible to obtain critical illness cover on a decreasing term basis.

So I think that contacting you and suggesting a change to a cheaper product seems to have been a fair thing to do at the time but does not automatically mean the original sale was unfair.

On that point, you will get absolutely nowhere pursuing a PPI claim because it was not a PPI policy.

In theory you could try arguing that the fact that Barclays told you in 2002 that a different policy was better shows there was a missale but if I were them I would simply argue that you knew that in 2002 and the rules say you must complain within six years of the original advice or, if later, within three years of when you became aware that you had grounds for complaint, which clearly occurred in nine years ago and timebar it.

I don't think a complaint would be difficult to reject.

politicallycorrect

Hi, this is a question for magpiecottage.

magpiecottage wrote: »

In the early 1990s many lenders would insist on such cover as part of the deal, particularly banks.

What I've quoted has some relevance but I haven't found a context yet..

In 1993, my grandad died of lung cancer, prior to his death, my parents decided to buy his house through Barclays. they engaged with a solicitor who set everything up and organised the purchase. as part of this, my father was told that he would have to take out a new Barclays Lifestages Plus Policy to assure the mortgage, the level of cover was £17,400 which I would assume reflected the price of the outstanding mortgage.

So, on the 2nd of October 1993, my father signed the agreement and began paying the 'maximum' premiums policy at £16.87 per month.

My understanding is that this product was sold to assure my dad's life against a mortgage, sort of like PPI but I know that it's an assurance policy not a PPI.

The solicitor who was handling the mortgage application and contract exchange, sent the deposit for the house as a personal cheque from himself instead of a bankers draft. the contract was void and we lost our deposit and the loan was squashed.

The lifestages policy is ongoing, our current payments are £64.71 per month, assured for a value of £32,396.

I rang up Barclays a few weeks ago and asked them the details of the policy and whether it was connected to any property purchase as I know that the mortgage docs and this policy were brought at the same time. On the telephone, they couldn't tell me anything. according to them, they cannot find the original policy so basically in their eyes, it doesn't physically exist anymore as a contract.

We continue to pay £64.71 each month, which increases 5% each year.

can anyone shed any light, is there anything we can do?