Bank Charges but Bank Owing PPI

Rich1968

Hi I have tried reclaiming bank charges from Barclays over 7 years ago and was unsuccessful.

With interest I think I was trying to claim over £7000 pounds.

Now (6 Jan 2017) I have just successfully reclaimed PPI from them for over £7700 admittedly I went through a company and had to pay fees but otherwise I would not have bothered.

Now here is the thing, Barclays have as I see it admitted that they have owned me money for some time - years - way more than my overdraft with emergency borrowing. So they have been in debt to me and I have been paying them bank charges?

My thinking is that they should not have been charging me for being overdrawn when they owed me money.

I welcome advise on this and of course I am going to look into it.

Any thoughts?

Thanks

Rich

dunstonh

Hi I have tried reclaiming bank charges from Barclays over 7 years ago and was unsuccessful.

Which is not unsurprising and was the likely outcome.

Now here is the thing, Barclays have as I see it admitted that they have owned me money for some time - years - way more than my overdraft with emergency borrowing. So they have been in debt to me and I have been paying them bank charges?

It can be linked on accounts where the PPi is paid from. e.g. if you had credit card PPI and paid over limit charges on the credit card. However, not on different accounts. So, you dont see it happening on loan PPI.

Also, it is still unusual when it does happen as the PPI is usually deducted monthly or the payment comes off monthly. i.e. if the cost of the PPI increased the debt by £25 and you went £100 over your limit, then you were still going to suffer the charges with or without the PPI.

Remember they are giving you 8% interest. That is the effective compensation that is more than enough for most people.

Nasqueron

PPI charges were tiny compared to other debts. The PPI on a CC would 99.99% of the time NOT be the tipping point that caused you to get a charge - PPI policy was typically around 70p per £100 of debt so you'd have to have an incredible budget to spend exactly the credit card limit, pay the minimum and have the PPI charge take you over.

Don't forget a huge chunk of that refund will be the 8% interest every year which is compensating you, which was not money they "owed" you (i.e. not the actual PPI charge or associated interest). You were never going to get back charges from 7 years ago since the banks won the court case in 2009

Rich1968

Hi thanks for your replies.

My query is that I know that the bank charged me thousands of pounds in both overdraft charges and PPI.

I believe that if I had not had the money taken from me in PPI I would not have gone overdrawn.

The bank has admitted it wrongly sold me PPI and has given that back.

They are charging me for the pleasure of making me overdrawn.

Cheers

Rich

Faith177

How much was the PPI per month?

Nasqueron

Rich1968 wrote: »

Hi thanks for your replies.

My query is that I know that the bank charged me thousands of pounds in both overdraft charges and PPI.

I believe that if I had not had the money taken from me in PPI I would not have gone overdrawn.

The bank has admitted it wrongly sold me PPI and has given that back.

They are charging me for the pleasure of making me overdrawn.

Cheers

Rich

You're talking about thousands cumulatively over the life of the account (assuming you have removed the 8% interest as that is an aside) not a monthly charge.

As I said above, the PPI charge is a tiny amount (it seems that Barclays charged around 80p per £100 of overdraft), it is almost impossible for you to have gone overdrawn because of the PPI charge as opposed to simply having a greater sum going out each month than coming in. If your OD limit was £1000 and was fully used the total PPI charge for that month was £8 - clearly that alone was not the reason why you went OD but rather all the other spending that took you over