Barclays got our PPI amount wrong....

churchill33

Hello I haven't posted on this chat forum before but I hope that someone could please offer some information to me.

My partner and I took out a secured loan in 2006. In December 2011 we contacted Barclays regarding our PPI insurance, and we received a refund early 2012. At the time I questioned the amount that we were refunded as it seemed to low, however I was assured that the amount was correct.

In May 2012 due to lots of extenuating circumstances we began to experience some serious financial difficulties. We contacted Barclays and were told that the only way we could reduce our monthly payments was to extend the term of the loan.

Taking everything into consideration at the time, and despite regularly contacting Barclays and our mortgage provider, we made the extremely difficult decision to go bankrupt. This has meant that we have lost our house, and have had a very stressful time.

Without delving too much more into the bankruptcy, my actual query is that in April 2013 Barclays wrote to us and said that they had miscalculated our PPI, and in fact they owed us a further £12,000!!!!! They have offered us £100 in compensation!

They state that they information they provided us with back in May 2012 was what they believed to be correct at the time, however upon re-looking at the case they realised the error and corrected it.

The amount of the monthly payment has now gone down to the amount I said that we could afford each month. We would never have gone bankrupt if they had got this information correct in the beginning.

Do we have a case to fight???????

We know that any monies received would go to the Official Receiver to repay debt - we don't have any problems with that, but we would not have made the decisions we did if they hadn't got things so badly wrong.

All advice is gratefully received.

Kind regards

churchill33

Thank You Amersall

It is good to know that my thinking is correct and that there is a case here.

The loan was with Barclays First Plus. Prior to our bankruptcy we had never defaulted on any of our bills but we were so squeezed financially that we no longer had any quality of life. We informed Barclays that we could afford £400 a month, and they said we would need to increase the terms of the loan by a further 5 years in order to have this monthly figure. This meant that we would end up paying them back around £90,000 in total. This was the straw that broke the camels back.

The decision to go bankrupt was not taken lightly, we took a lot of advice and did it last November. It has meant that we have lost our house (ironically a neighbour has now bought it), I nearly lost my job (I do accounts..) and my sanity has been very questionable (thank goodness for anti-depressants!).

Once the loan figures were re-calculated Barclays said our new repayment would be £404 a month - only £4 different to the monthly amount I informed them that we could afford. They simply reduced the amount of the loan with the difference and sent the amount of the 8% interest to the Official Receiver.

The £100 is compensation for the inconvenience. I told them I did not want it as I could not keep it anyway as the Official Receiver would take it and use it towards repaying debt so they would get it back eventually!

I will contact the CEO - thank you for that information. I have been sent details of the Ombudsman so I will also contact them.

I really appreciate you taking the time to answer my post.

Kind regards

amersall

Thought it would be First Plus :mad: as soon as I saw Barclays in your post I had an idea it would be what happens to the £12,000 then?, regardless, let me know what happens next.

churchill33

Hi

They have offset the £12,000 off of the loan (hence the reduction in the monthly amount), and have given the 8% interest to the Official Receiver.

I am very cross as you can imagine, and will spend the weekend devising an email.

They stated on the telephone that they acted in line with their guidelines at the time and that the information they provided was correct then, however it has now been found to be incorrect and they state they are not in the wrong because they acted on the information and found there was a further refund due.

However, I stated on many occassions that I believed the refund to be incorrect at the time, and they said I was wrong!

I will keep you updated - thanks again.