PPI actual claim - not mis sold

katekat

Hello,
I have been asked by a friend to help her finding out how the PPI is being paid out on a credit card if there was actually a sucessful claim.
Barclaycard admitted that she has been covered by PPI on her credit card after claiming in 2014 the protection due to ilness and redundancy from 2008 till 2014. Barclays accepted (there was also a misselling story there as well and she didn't know what the insurance was actually for until the ppigate got uncovered).

The main question - how much money is she supposed to get from the insurer/barclaycard? Let's say she had x amount of debt she could not pay in time. Barclays was charging interest and default fees/penalties for paying late or not paying at all. They were applying interest on those fees. The debt grew. Some of the minimum payments were made in the meantime.

The insurer paid out now the credit card balance. Now she wants to claim from Barclays all the money she paid in plus the interest (?) as if Barclays had informed her of ablility to use her insurance earlier (as she told them she was having problems to pay years ago) she wouldn't have to be paying off the credit card, as the insurer would pay it for her.

Any idea how best to calculate it, what interest should be applied etc?

Many thanks.

Ps. She had a terrible expierence with the customer service of Barclaycard, ignoring her complaints and misleading in the communication.

amersall

Tell your friend to put a claim in for mis sell of the PPI.
Use the reasons you stated above. Ask for the charges back as well.

If she wins redress, they will calculate what is due, no one can tell her what she will get back as Credit cards are calculated differently to Loans and will apply to her card and the use of it.

lisa110rry

Katekat, I'm sorry your friend had a dreadful experience. Our experience was quite the opposite, to be honest. When my husband was diagnosed with (quite severe) congestive heart failure with a quick onset which was thought to be due to a viral infection, I approached his credit card company who gave me the name of the insurer, AXA. I completed a fairly simple form, with a portion completed by my husband's doctor, and they paid 120% of the balance on the card over a period of time, directly to the card supplier. They explained that they would have to contact me from time to time to check the situation remained the same. I explained it could really only go one way, down hill. They were sensitive and kind.

katekat

@lisa110rry - it is actually very rare to find any inforation about the claims on PPI as the internet is flooded with mis-sold stories.
I do not know exactly what is the main reason in the difference in expirence, maybe because you dealt directly with AXA, she has to go through Barclaycard who do not want to admit liability to failing to notice the PPI was in place and pointing out it could be used during ilness and redundancy....
I cannot quite understand how the 120% of the balance was paid out? Did the 20% go to your husband's pocket or did it just put credit card balance in credit?

As to the mis sold PPI - can you still claim if you used the insurance?

lisa110rry

Hello katekat,

AXA paid a sum directly to the card provider each month until there was, in the end, a surplus on it. As my husband is chronically ill and things will only go (eventually) in one direction, we requested that the credit amount was issued to us and the credit card was closed. We put the extra into Premium Bonds and he used this as the extra payment for his Motability vehicle.

Over the years I have had many approached to "reclaim mis-sold PPI" and I always take the time to explain that without PPI we would be financially ruined. My understanding is that at one time the validity of a mis-selling claim for a policy which had been claimed on had not been tested. Not sure if that's still true.