Barclays bank loan PPI reclaim

techguy007

Hi all,

One of my friends has taken a loan of £5900 from barclays back in 2011 June. He is still paying the loan repayment and never missed the payments.
He told me that he is paying extra £20 something as a loan protection insuarance since 2011 June.

Few months ago he was given the option by the bank to pay moe monthly installments and reduce the period of paying the loan thus enabling him to save some money.

1) Income protection insurance - Is this a PPI?
2) He said he did sign a check list given by the banking officer regarding this insurance when he took the loan. Does that mean he cannot try for a PPI Claim?

Thank you very much

techguy007

None here can give me a comment

dunstonh

1) Income protection insurance - Is this a PPI?

Not normally. most income protection policies are PHI (permanent health insurance) and very different in set up and structure to PPI.

2) He said he did sign a check list given by the banking officer regarding this insurance when he took the loan. Does that mean he cannot try for a PPI Claim?

he can complain about any product but income protection complaints are rare. Success on those complaints is low as well. Income protection is generally regarded as a cornerstone of insurance requirements. It doesnt suffer issues similar to PPI as it has deferment periods designed to match employer sick pay ending and will continue to pay out an income to the end term (typically retirement). it is underwritten at point of sale (unlike PPI) and it doesnt matter if you are self employed or employed. Plus, it is standalone and not factored into the debt. It has a higher audit trail (medical details asked etc) so complaints are easier to defend.