PPI on a Loan

chyanmor

This is probably one of my first posts so please be gentle.

We took out a loan with Barclays for a fair sum. Now we tried to do a PPI Claim and that got rejected with some heavy paperwork sent to us. However through reading the paperwork it would appear that the loan PPI if not used can be reclaimed in full after the 5 years that PPI was for.

Has any one done this with Barclays? Not entirely sure who to contact

Thanks in advance for any advise you can offer!

jonesMUFCforever

We need more information - if the loan was a bog standard personal loan I fear you are misreading the documentation.
If it is some other kind of loan then please post more information.

JuicyJesus

There is no chance that a standard part of the product is getting the premiums back if you don't make a claim. That just isn't how insurance works.

chyanmor

It is a secured loan however from the PPI documentation that I was sent in response to my PPI Claim it says the following:-

The cover lasts for the first 5 years, and after this, if you keep within the loan terms and conditions and have not gone into arrears and have not made a successful insurance claim you can claim a refund of an amount equivalent to 100% of the insurance premium from Barclays"

JuicyJesus

chyanmor wrote: »

It is a secured loan however from the PPI documentation that I was sent in response to my PPI Claim it says the following:-

The cover lasts for the first 5 years, and after this, if you keep within the loan terms and conditions and have not gone into arrears and have not made a successful insurance claim you can claim a refund of an amount equivalent to 100% of the insurance premium from Barclays"

I stand corrected!

Now, here's the question - if they had that term in the contract, why didn't you go through the stated process for claiming that refund rather than making a mis-sell complaint? The two would have had the same outcome and making a complaint would have taken a lot more time.

Have you been in arrears, thus invalidating the refund clause? What reasons did you give for mis-sale? Having PPI in and of itself is not a bad thing. If you haven't been in arrears, have you tried claiming back the premiums from Barclays under this guarantee (i.e. just going through customer services)?

amersall

This PPI is the worst, the PPI only covers you for 5 years but the whole PPI is still on the loan to term end with interest, you get the PPI back, cashback, at the 5 year point but not the interest that you paid for the 5 years.

chyanmor, you need to do a mis sell with this again, this is mis sold no matter what Barclays say.

If you want to do this again and need wording, I can help.
If your loan has not ran for 5 years yet, do not take the cashback, if you had the cashback and the loan has been repaid then go mis sell again.

amersall

if they had that term in the contract, why didn't you go through the stated process for claiming that refund rather than making a mis-sell complaint?

Because the whole PPI would still have been on the loan to term end with interest, this would costs thousands over the remaining term and the loan is not reset.

The two would have had the same outcome and making a complaint would have taken a lot more time.

Not true, a mis sell is the best option as the whole PPI is removed from the loan balance and the monthly loan payment goes down by the monthly PPI amount and the op gets all the PPI that they have paid to date with the interest on that plus the 8%.
The cash back does not.

[Deleted User]

amersall wrote: »

chyanmor, you need to do a mis sell with this again, this is mis sold no matter what Barclays say..

Yes, this is one of those pernicious cashback loans. At the very least, the OP should be referring the rejected complaint to FOS.

amersall

Absolutely !! they would love the op to take the cashback as this would cost Barclays less and the customer more.

chyanmor

Firstly thanks to those who have commented

amersall wrote: »

This PPI is the worst, the PPI only covers you for 5 years but the whole PPI is still on the loan to term end with interest, you get the PPI back, cashback, at the 5 year point but not the interest that you paid for the 5 years.

chyanmor, you need to do a mis sell with this again, this is mis sold no matter what Barclays say.

If you want to do this again and need wording, I can help.
If your loan has not ran for 5 years yet, do not take the cashback, if you had the cashback and the loan has been repaid then go mis sell again.

I have not claimed the cashback as yet as been reading and wanted some peoples views on it. You talk about doing another mis sell is it possible to do multiple even if the original was rejected? or am I best just going to the FOS with the original complaint and adding in the fact it had not been pointed out about additional interest accruing?

Thanks for any advice

dazza12

As Moneyineptitude has advised, as you've had a rejection from Barclays it would need to be referred to FOS. You could try to complain to Barclays again, but they're likely to refer you to their final letter.

You have six months from the date of the letter to refer to FOS, any later and you lose the right to refer the complaint.

Bear in mind that FOS can take 18 months or more to come to a decision.