Barclays Loan Protection

Bryn_2

Allow me to vent my anger whilst asking for some advice on how to deal with the total lack of customer service that is Barclays'.

Late last year my husband got a loan with Barclays, with Loan Protection. We've been banking with Barclays since 1999, they know us, we know them and we know they get it very wrong sometimes, but having been with them for such a long time, they could give us good rates.

In February my husband was made redundant, so put a claim in with Barclays insurance. They've been f*cking us about ever since. First it took 2 weeks for any response at all, then they told him that he should've had his previous employer stamp and sign the form as well. There was nothing on the form asking for this, and only one box for last employer.

My husband provided contact details for his last employer and hoped that was it. In the mean time our monthly loan payments continued to go out, just when we couldn't afford it and the bl**dy insurance should've kicked in.

Two months later, with hubby just in a new job, our finances are totally screwed. We've had to live off my income and his JSA for two months, and we've survived so far, but it's only 6 days after pay day and we're already overdrawn, with minimal resources to make up for it.

What can we do?

One thing we will do is change banks; we've had enough. The success of that depends on our credit rating and whether we will get another loan to clear off this one and just get the heck away from Barclays. We're going in tomorrow and demand that we be given our due, because we're paying good money for this insurance and it's just not good enough to be arsed around like this. I see the ploy ... if Barclays Insurance delay payment, that means we'll get overdrawn on our Barclays current accounts, so its a win-win situation for the bank.

Is this something I can involve the FSA in?

Cheers,

Cora

Rafter

Cora,

The FSA and insurance ombudsman do now regulate loan insurance I think.

If you have sent off all the correct paperwork and there is still an unreasonable delay I see no reason why you shouldn't get a full refund for any bank charges from going overdrawn.

Unfortunately loan protection insurance sold by banks is a poor product and you might be better off getting stand alone insurance from an insurance broker next time - it is often less than half the price for the same cover too!

Good luck.

R.

Debt_Free_Chick

Bryn

I think you need to check the details of the loan protection very carefully. Often, they don't pay out immediately and you need to be out of work for some time (e.g. 6 months) before the protection pays out.

In addition, if your husband had pay in lieu of notice and/or severance, loan protection counts this as "future income". So if your husband had, say, a payoff equivalent to 2 months pay, then the protection would count that as advance pay for the next 2 months.

Check the details carefully to see exactly what you think the loan protection should be paying. Any help with this, then post back the wording and we'll try and help.

Regards