Can't believe Barclays !!

julieandrea

I cannot believe that Barclaycard; who we have had a secured loan with for a few years are saying we were not mis-sold our PPI !
For a start, what would have been the point of taking out a PPI on a secured loan; because it's secured against the property; and then the PPI was only over five years but the loan was equivalent to a mortgage lasting way more than 5 years. We were not asked, about any medical conditions which my husband has... I'm speechless.. Are they right ? or are they just trying to get out of making a payout ?

amersall

What year did you take this loan out?.

julieandrea

We took the loan out in June 2006...

amersall

Write back to them and send this.
We/i reject your reasons for not upholding My/Our claim for PPI mis sell for loan number (s) xxxxxx, We/I do not accept the PPI was not mis sold because of the reasons below and ask you to reconsider the offer or We/i will pass this to the FOS for a second opinion.

We/I would like proof to the contrary of my/our reasons for mis sell of the above PPI .


1)We/I were not told that the ppi was in effect another loan that was added to the original loan and was repayable over the trem with interest

2) We/I were told that the ppi was a 5 year policy, but not told the ppi would still be on the loan to term end with interest and would no longer have cover.

3) We/I were told that if we did not make a claim,or go into arrears on the ppi ,after 5 years we would receive the cashback of ppi but were not told this would not include the interest made on these payments that we paid over the 5 years or that the PPI would still be on the loan to term end with interest.

In line with the FOS recommendations it is requested that the overall situation be restored as if PPI had never been included. This will entail:
A refund of the monthly payments that have actually been paid towards the overall loan in excess of those that would have been needed, if the original loan had been sold without the PPI policy.

In addition, interest at the rate of 8% simple per annum to any excess payments made from the time each payment was made to the point that Barclays pays them back to us. We/i believe we were not given enough information on this ppi to make an informed decision. Had we/i known the full cost of this ppi we would not have taken it.

Unless you can prove without doubt that this PPI policy was fair, reasonable and suitable for my/our circumstances we/I will require you to rearrange the loan as if PPI had never been included.


If you had another form of "cash back" such as a bonus then replace this in the letter.

dunstonh

You need to have reasons for complaint and in many of those cases you need to be prepared to supply proof to support your complaint. In some cases, evidence is not required because of technical failings automatically work in your favour. However, it isnt actually clear what your complaint reasons were or why they have been rejected.

[Deleted User]

julieandrea wrote: »

what would have been the point of taking out a PPI on a secured loan; because it's secured against the property ?

Well, the obvious answer (which the Bank might give to this line of questioning) is that it might prevent your home from being repossessed. In other words, not a mis-selling reason and one you should probably avoid mentioning.

magpiecottage

Moneyineptitude wrote: »

Well, the obvious answer (which the Bank might give to this line of questioning) is that it might prevent your home from being repossessed. In other words, not a mis-selling reason and one you should probably avoid mentioning.

I am afraid the OP seems to have fallen for the assumption that it is her, rather than the bank that is put into a "secure" position.

This error could, as you suggest, have resulted in her losing her home.

If the bank sold a single premium ppi then it would be entitled to conclude that had the sale be carried out compliantly and the full ramifications explained she would have purchased a monthly premium PPI policy. The cost of that would be £9 per month per £100 benefit, in accordance with FSA guidance.

amersall

This PPI is single premium and was mis sold just as Barclays First Plus, Ocean Finance, Norton etc were, it was mis sold primarily due to the fact the total cost and term of this PPI in relation to the loan term were not given to the customer, they were not told that after the cover ran out they would need to find another policy, but the total PPI would still be on the loan to term end with interest, had a new policy been taken then you would pay for 2 PPI and only have the one cover.
Had these policies been sold with the correct info (as magpie states)
then there would be many customers not complaining about being mis sold this product, as they would have taken a cheaper policy elsewhere.

For Barclays to say this type of PPI was not mis sold, beggars belief.