PPI & Barclays

Milo19 · 18th November 2006, 10:42

Has anyone tried to take on Barclays? I have a £5100 loan with them, and just looked and my agreement and the PPI is £1938.87 :o .
And thats before any interest is added to the loan!!! :o

I have something from Barclays saying that I can cancel anytime and I have tried in the last year to do this. Its been on going for around 8months. Now I'm just going to ask for it back.

Does anyone have the address, or should I just send it to Barclays insurance in Dublin??

I have an outstanding claim regarding my charges with them. Should I wait until that is settled before doing this, and also, is the interest added to the PPI as well, or is interested added, and then PPI on top of that, effectivly making the PPI interest free? Otherwise we should be claiming that?!!!

Milo19 · 21st November 2006, 08:34

*bump*

Milo19 · 26th November 2006, 13:32

bump

Milo19 · 11th December 2006, 16:49

Bump!

bobclark80 · 11th December 2006, 17:28

Hi

I am also just about to start a claim on behalf of my son for miss-sold PPI I phoned the telephone number in the recent Terms and Conditions of PPI and was told to make the complaint at my Branch. I requested a copy of the CCA Agreement on 2.12.06 and I am waiting on that.

The T& C recently changed do you have an earlier copy?

best wishes

reidnet · 11th December 2006, 18:28

There is no reason why you cannot cancel any PPI agreement, It really depends on how the company work. and it depends how much they want to P*** the customer off first. But always beware I was offered a refund on a mis sold 5 year policy which cost £3388 plus interest at 7.9% APR over 15 yrs. It had run 3 years of the 5 year term..they offered me £93.10 refund.
Again it all comes down to the type of Policy and how it is paid for, A lot of Companies sell what is called a single payment policy, this is normally added onto your loan. This of course makes it tuffer if you want to cancel the policy, they normally go along the lines of the only way you can cancel the policy is by clearing the loan with PPI and taking another loan without PPI, this of course does not give you a refund anywhere close to the real cost of the PPI policy.

Was the policy Mis Sold to you ?.. Eg were you told no PPI then No loan ?, that is the most common mis selling tactic that they use, If so you have of course grounds to claim for the whole premium plus interest if it was mis sold, but they will fight this of course.

I have had one ongoing since September, Its now at stale mate and Im ready to go to court to recover the whole Premium plus 3 yrs Interest.

Your local Trading Standards office may also be able to help, Trading Standards lodged a super complaint with the FSA regarding the practises used in the selling and to the conditions of PPI.

Good luck

Ian

Milo19 · 11th December 2006, 21:01

Yes I was told because of my age, "alot of people get into finacial problems because they take too much on."

That was the basis that they sold it to me. Thing is, I'm currently on going with a charges claim, should I wait until that is sorted or should I start it now. I never claimed on my policy, and was also told I can cancel it at any time, only to find I can't because its one of the policies you mentioned where I have to pay of the balance, and then take up another loan, minus the protection! Do you have any letters that I could look at to just an idea what to write?
Hears what I have drafted out:-

"Following a letter that I sent to Barclay Insurance in Dublin, I received a phone call from Tracey Banner, Customer Relations Manager. In this conversation, she stated that to the only way to remove PPI is to repay the existing loan using alternative funding. Obviously, if I had such funding, then I would not require the loan in the first place.
To cancel this insurance, I would have to take out another loan, this time without PPI, to pay off the existing one. Now because of my first loan, and adverse credit history, I would not be able to obtain another loan as Barclays would take into account the existing loan, even though this would be paid off.
Therefore I would not be able to cancel the PPI. I enclose a copy of this letter.

As I said to Mrs. Banner, I believe I was bullied into purchasing an insurance policy that I do not need.

When I took out the loan, I was told that I would not have been given the loan if I did not take PPI. I have since been told that this is not true, and that you are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in your quoted loan interest rate, which you did not do.
I therefore consider that I have been mis-sold this expensive insurance, which I do not need and which I said that did not want

Furthermore, when I took out the loan, I said I did not need the PPI as my employer provides generous illness and redundancy benefits, but I was told I should still take it out.

I was told at the time of taking out the loan, I was told that “a lot of young people get themselves into large amounts of debt, and then if they lost their job could be declared bankrupt. Being at the age of 20, not earning a huge amount of money and having to pay rent etc, I concluded that I’d rather be safe than sorry.

I have been advised that I should be able to cancel the PPI contract at any time and receive a partial refund of the premium that I have paid. I would like to do this. Indeed, in the Terms & Conditions you sent me once I had taken the loan clearly state that: -

If you are not happy with your cover, please write and tell your branch within 30days of the start date. We will then cancel your cover from the start date without charge. After this, you can cancel your cover at any time, we will only refund part of the premium. The premium will be calculated according to the refund rates at the time.

I have enclosed a copy of the T & C’s.

In view of the way I was mis-sold the insurance, outlined above, I would like to ask for a full refund of the whole premium.

Please bear in mind this complaint has been on-going for the best part of a year so I require you to cancel this mis-sold insurance with immediate affect, and refund the whole premium with 14days

What do you think?

reidnet · 11th December 2006, 22:46

That looks ok to me, It clearly states that you can cancel your policy at any time, But beware they will offer you very little refund, a policy which I wanted to cancel which cost £3388 plus Interest over the period of the loan came to over £4000, making a total of over £7400, and they offered me ...£97.00 or to reduce my monthly payments by a massive 50p a month..lol.

Fortuanatelly I was in a position to pay off the complete loan and am now fighting them to get the policy cost plus 3 years interest back. Its a long hard slog though, I am about to take it through the courts, so fingers crossed that the judge agrees in my favour.

Hopefully soon there is going to be even more bad publicity for these companies and the methods they use to sell this expensive insurance.

The new loan I have and with independant PPI, The PPI costs me 10 times less for better cover, it is also paid monthly and can be cancelled with One months notice.

Milo19 · 14th December 2006, 19:29

I can't see Barclays willing to repay the PPI surely its too difficult to prove?

dellydaisy · 14th December 2006, 19:35

Hi as this is new its hard to say

But several people on here now have been successful so i guess we can learn off them and i guess take a step at a time .

Delly

reidnet · 15th December 2006, 10:04

PPI is all new.. I have had one that I got refunded without too much bother, the bigger one im fighting now is proving to be a bit more of a challenge though. Their Argument is you ticked the box so F**k off and leave us alone..lol. My arguemnet of course is, Was told no PPI no Loan, plus their sales rep filled out all the forms so he ticked the Box not Me.. And i have documented evidence of that of course..
I took this one to the FISA, and after having a chat with them on the phone last week I was told a senior officer at the FISA had spoken by Phone to a senior Director in GE Money and he had promised to get in touch and try to resolve the matter. and has he ...NO.

Im taking this on to court too, Probably not until after Xmas etc now, as I have to take it through the English Small Claims System.

This is one that has now been going on since around September, At times I have felt like throwing in the towel, but with encouragemnet from others and the Press I intend to fight this to the bitter end.

The more we fight the more they might eventually sit up and listen to the folks that they have been ripping off for so many years.

Ian

Milo19 · 16th December 2006, 00:27

In light of your comments and the fact I WAS told no PPI, no loan, I gonna go for it, what harm can it do?

reidnet · 16th December 2006, 03:07

Cant do any harm at all Milo, In fact the more complaints that they get they may even sit up and listen..Just we seem to really need to Shout at them just now..lol.

Good Luck, I will keep an eye on your progress..

Ian

Milo19 · 16th December 2006, 10:13

Ian, one more quick question though, I currently have a case against Barclays for charges, should I leave the PPI until that is settled. The case is stayed until the 09/01/07, however, I have just written to the court explaining that Barclays won't negociate a settlement, as per the courts instruction. Maybe another month before they settle. Should I wait until that have before vringing another case against them? Thank Jim

reidnet · 16th December 2006, 13:10

It is really up to yourself Milo, If you want to crack on with the claim for PPI, I would tend to get the ball rolling.

I was up all last night preparing my NI and Statement of Claim against GE Money / Purpleloans..so its going in the post at the start of the week, Lets hope that Royal Mail dont loose this one..lol

Ian

Bicester1 · 20th December 2006, 07:02

Hi

Following this thread with interest[no pun intended]

Lloyds loan some years ago no PPI no loan so have I been missold PPI?

Will a standard Subject Access Request get me the details it might be more than 6 years ago I have no documantation?

Bicester1

livelylad · 20th December 2006, 07:38

Ok here is a snippet from a document I am reading. I will scour it in full for relevant Information

Quote:

Visit findings
5.9 Typically, if a single premium PPI policy is cancelled outside the statutory cancellation period, the customer does not get a pro-rata refund. At five of the firms that we visited, we came across PPI contracts that provided for no refund upon early cancellation. This is a significant limitation of a policy and should be drawn to the customer’s attention in the Policy Summary. Some
contract clauses provide no option for continuing cover and no refund when the customer repays the linked credit product early. We consider such nil refund clauses may be unfair under the Unfair Terms in Consumer Contracts Regulations 1999. We will be asking the insurers concerned to justify their use of such terms in their single premium PPI policy documents.

5.10 In most other cases, the amount refunded was so unfavourable to the customer that we would have expected it to be drawn to the customer’s attention as a significant limitation of the policy and included in the Policy Summary. This disclosure should have been done in a way that meets the requirement on firms
to treat their customers fairly (Principle 6) and to provide information in a way which is clear, fair and not misleading (Principle 7 and ICOB 2.2.3R). This is especially an issue where it is likely that the consumer may terminate their loan early and is also an issue where PPI is sold with hire purchase agreements (see
para 5.12). This should be considered as part of the suitability assessment in an advised sale where flexibility is part of the customer’s needs.

Milo19 · 23rd January 2007, 14:08

Ok, my case regarding bank charges has been settled, so Im now going to tackle this.

I ran to get a settlement figure for my loan. I started this loan in September 2004 for £5100.00. I just rang and was to my refund for the PPI that I wont use becuase the loan would have been paid is £347.45. So with the loan still have 33months to run and I pay £32.65 a month in PPI I make that £1077.45. What they've offer is short by £730.00. When I explained this I was told whilst the loan is at its highest, more of the repayment is set aside for the protection and as the amount gets lower, the repayment to Barclays Insurance is reduced and more of the repayment is set against the capital of the loan.

IS this correct? Has anyone heard of this before, seems a strange way for this to work.

reidnet · 23rd January 2007, 15:40

That is the usual story that they come away with, The start of the loan is a higher risk to them so they state that the actual amount to pay for the PPI is higher at the start of the term.. This to me stinks as a racket..As with most single payment policies the full amount is passed onto the Insurance company at the start of the loan, less the commision etc which is paid to the lender. In some cases what you actually pay the lender for the policy can be as high as 9 - 10 times higher than the amount that the Insurer actually gets for the policy.

As your loans were taken out pre Feb 05, they will also have calculated your settlement figure using the rule of 78. This was actually stated by the FSA as an unfair method of calculating early settlement figures. The rule of 78 has now been replaced by a slightly fairer method on new loans taken out after Feb 05.

Of course the rule of 78 can be challenged as an Unfair Penalty, I did this with Firstplus and Won.

Ian

Milo19 · 23rd January 2007, 19:58

So how would you word a first letter to them? Is the letter above ok?
Is there anything on the "rule 78" on the forums?

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