My Barclays PPI nightmare/partial success, advice needed please?

jamesbrit1

Hi all I hope you can please give me some advice regarding my ppi claim. First a little history.

I had a 7.5k loan from Barclays to consolidate my debt. It was over 5 years and all was well. Just over a year into my loan I lost my job and defaulted. Since then had the interest stopped and now paying back £50 PCM and have got the loan down to just below 4k. My default also falls off an the 20th of this month (yey!)

So I sent off a PPI form got an acknowledgement letter back and then waited. At the 8 week point I got a letter saying they are sorry and still dealing with the claim blaming a backlog etc and included a guide to complaining to the FSA.

Today a letter turned up with a cheque for £183.71, I thought it was a joke at first and when I read again it stated that they have given me a full settlement of £1,980.00 including 8% interest but have taken the £1,796.29 off the rest of my debt which I have been paying monthly happily for years.

My question is can they do this. What is my next move? Do I send the cheque back as surely it my choice what I spend my money on and how muck I choose to pay off my debt?

It annoys me as Barclays knew about my PPI and did nothing to inform me and when I make a claim then the take 80% off me!!

Would you please advise what I should do next, they did include a leaflet about complaining to the FSA again so guess that will be my next step? Or do I write to Barclays and tell them I would like the full amount and return the cheque.

Many thanks in advance,
James

dilus

jamesbrit1 wrote: »

Hi all I hope you can please give me some advice regarding my ppi claim. First a little history.

I had a 7.5k loan from Barclays to consolidate my debt. It was over 5 years and all was well. Just over a year into my loan I lost my job and defaulted. Since then had the interest stopped and now paying back £50 PCM and have got the loan down to just below 4k. My default also falls off an the 20th of this month (yey!)

So I sent off a PPI form got an acknowledgement letter back and then waited. At the 8 week point I got a letter saying they are sorry and still dealing with the claim blaming a backlog etc and included a guide to complaining to the FSA.

Today a letter turned up with a cheque for £183.71, I thought it was a joke at first and when I read again it stated that they have given me a full settlement of £1,980.00 including 8% interest but have taken the £1,796.29 off the rest of my debt which I have been paying monthly happily for years.

My question is can they do this. What is my next move? Do I send the cheque back as surely it my choice what I spend my money on and how muck I choose to pay off my debt?

It annoys me as Barclays knew about my PPI and did nothing to inform me and when I make a claim then the take 80% off me!!

Would you please advise what I should do next, they did include a leaflet about complaining to the FSA again so guess that will be my next step? Or do I write to Barclays and tell them I would like the full amount and return the cheque.

Many thanks in advance,
James

Hi James, in a word yes they can do this. They can use any redress to pay arrears or outstanding debt and pay you the 8% standard interest only.
Did you attempt to claim on the PPI when you lost your job and if so why were your payments not covered?

jamesbrit1

Thanks for your reply Dilus, I did not know I had the PPI never mind what it was for etc... Until I checked this January. Can I push for more interest or is 8% normal, they were charging me over 18%?

James

dilus

jamesbrit1 wrote: »

Thanks for your reply Dilus, I did not know I had the PPI never mind what it was for etc... Until I checked this January. Can I push for more interest or is 8% normal, they were charging me over 18%?

James

Hi James,
8% standard interest is in line with FOS guidelines and is far and above any interest rate you would have got for this PPI money being invested in a high earning savings account instead. 8% interest over this period in time is very generous

dilus

jamesbrit1 wrote: »

Thanks for your reply Dilus, I did not know I had the PPI never mind what it was for etc... Until I checked this January. Can I push for more interest or is 8% normal, they were charging me over 18%?

James

One of those awkward situations, you did not realise you were paying for it so why would you even think you could claim, because of this you got into trouble the only comfort you can take is at least you are getting redress now and it is easing your debt, well done

JoshBee25

Rationally, You defaulted on a loan you're now paying £50/PCM to clear the outstanding you've then claimed against them of being miss sold PPI & you were awarded your lump sum. You got a cheque for £183 & had £1700 cleared of your loan. Let's face it....

It's £183 you didn't have, also £1700 of your loan of course they can do that & it's probably in your best interest they have... they've just took around 34 months of your payments of you for something you could of not potentially had if there wasn't such an out rage about the PPI.

I'd smile & cash it.

alfie2012

It annoys me as Barclays knew about my PPI and did nothing to inform me and when I make a claim then the take 80% off me!!
JamesBrit1

I think you should write to them and ask to re-consider. On the grounds that when u lost your job, and they agreed to £50 a month, they were aware you had PPi and the least they should have done is notify you to see if it was possible for you to claim on it. Ask them because of their error at the time the least you should receive is half of the money and the rest towards your debt. good luck

amersall

alfie2012 wrote: »

It annoys me as Barclays knew about my PPI and did nothing to inform me and when I make a claim then the take 80% off me!!
JamesBrit1

I think you should write to them and ask to re-consider. On the grounds that when u lost your job, and they agreed to £50 a month, they were aware you had PPi and the least they should have done is notify you to see if it was possible for you to claim on it. Ask them because of their error at the time the least you should receive is half of the money and the rest towards your debt. good luck

I agree, i would give this a go, the op has nothing to lose