PPI Problems with Barclays

bedknobs_and_boomsticks

Hi,


I'm wondering if I can get some help.


In 2008 my girlfriend took out a loan with Barclays. She was advised to take out PPI and told that she could cancel the policy at any time. About a week later, she went into the branch where the loan had been set up and asked to cancel the PPI. She was told that she couldn't have it removed without renegotiating the entire loan. Later she tried to cancel it again and was told the same.


She's complained to the bank by phone, and they have responded that, when she took the loan out, the T&C's stated that the PPI could not be cancelled without applying for a new loan, and that they have no record of her asking for it to be removed anyway. They say that they now view the complaints procedure as being exhausted (she has not been contacted since the initial phone call), that they will not enter into any further correspondence, and that she must go to the financial ombudsman if she wishes to take it further. They state that if she wishes to open a complaint about the PPI being mis-sold she can do and have offered a £110.73 refund for no stated reason.


So, my questions are as follows:

1. Has she been mis-sold the PPI on the basis that she was told the PPI was removable at any time?
2. Have her consumer rights been breached as her first request to withdraw the insurance would have been made within the cooling off period?
3. Is it correct that the PPI that cannot be removed without renegotiating? Doesn't this imply that for that loan, PPI is compulsory, which I understand should never be the case?
4. Can the bank just declare that the complaint is closed?
5. What is the best way to proceed? Take the money (about 10% of the full amount)? Harass the bank? Take it to the FSO? Launch a mis-selling complaint.

Many thanks for any help that you can provide.

di3004

Hello there

Some banks will consider and review within good reason, and many have still been successful older accounts.


In my opinion, she has been misled on the application.

If she requested them to cancel within the cooling period then that should have been done on her request.

They should have just cancelled this, and reduced the loan monthly repayments, as it was within the cooling period.
And this should therefore not have intervened with the loan, only if she had requested them to cancel after the cooling period, which I assumed was 30 days, some 14 days.

She had a right to cancel at anytime, and renegotiating should not have come into it - again she was within the cooling period.
PPI should have been made optional, and not compulsory.

You can complain anytime and sometimes they will ask for more information to reconsider, in my opinion I would maybe give it another go and give them 14 days with any further information, tell them this is a genuine complaint with the reasons given and as a valued customer of the bank, you expect they consider and take this complaint seriously, then if nothing heard by the 14 days, move on to the FOS, as some will even reconsider even if given a final decision.


Personally with a case like this one, I would try fighting all the way, if they do not offer the full amount of the PPI plus interest, then complain to the FOS, however, please be aware the FOS may also take some time, but it maybe worthwhile.

Hope this helps, good luck.

dunstonh

They state that if she wishes to open a complaint about the PPI being mis-sold she can do and have offered a £110.73 refund for no stated reason.

That would suggest a return of the premium paid plus interest. Although the amount is small. You can ask them what it is for.

Has she been mis-sold the PPI on the basis that she was told the PPI was removable at any time?

You havent indicated any mis-sale reason.

Have her consumer rights been breached as her first request to withdraw the insurance would have been made within the cooling off period?

No. It is quite common for banks to have to re-issue the loan rather than being able to just remove the insurance. It is no big deal to do. Although it will take up some time.

Is it correct that the PPI that cannot be removed without renegotiating? Doesn't this imply that for that loan, PPI is compulsory, which I understand should never be the case?

In many cases it is correct. However, only in administration terms.

Can the bank just declare that the complaint is closed?

Yes.

What is the best way to proceed? Take the money (about 10% of the full amount)? Harass the bank? Take it to the FSO? Launch a mis-selling complaint.

If she thinks the PPi was mis-sold then turn it into a PPI complaint instead. If you go to the FOS on this basis then there is little for them to do.