Barclays P.P.I

[enaid]

My sister had a small business that was struggling, and the bank knew of this obviously by the way the account was going. The bank advised that they take out a personel loan in her husbands name only (by the way, by this time he was her business partner, they ran the shop together). Her husband took out the loan with P.P.I, same old story no P.P.I no loan. As this is hard to prove, decided to go down another route for mis selling of P.P.I The T&C says the P.P.I covers the full 84 month for the loan, and also states that self employed are covered, so this is also a no go.
In the Default section of the T&C it states if you default on this agreement we shall not have to pay the loan funds to you, One of the reasons for default is "We have reason to believe that you are,or are likely to become,insolvent". Could this be used against them as they knew that the business was going downhill. The loan was taken out in June 2004 the business closed in Feb 2006.

[hellhasnofury]

Hell and welcome
I am not an expert but what you are saying is
The policy was mis-sold for 2 reasons

1. no ppi no loan

2. Loan was given when the business was in trouble

Surely it is worth sending a letter to ask for the refund of this policy claiming it was mis-sold for these 2 reasons.

and see what they have to say.

[enaid]

That's what my sister has done and the final response is a new loan at 7.9% and not (wait for it) 19.9% as offered earlier. It makes me sick that in a way they have covered their selves, because when the business went down their loan would have gone down with it. But by advising her husband to take out a personel loan they would have more chance of getting their money back. By the way the business loan was in joint names, and they advised a personel loan in his name only.