Hi all I am new to the thread so please be patient with my query. My wife and i took out a loan in March 2006 with Barclay's ( i had been a customer of for 20 years) for £58,000 over 25 years as we were in serious financial difficulties at the time. When we took out the loan our adviser offered us a saving scheme built in the loan which included insurance. He told us at the end we would receive a lump sum of £14,000. We applied for our £14,000 in 2011 but discovered that the £14,000 had been added to our loan and we now owe £72,000 and the £14,000 was actually PPI. We did not know this saving scheme was insurance and some items i was not covered for as i had only been employed by my current employer for 1 month so the redundancy cover was invalid and also my wife was not covered none of this was explained. We did receive our £14,000 back but can i claim 5 years interest. My wife and i still owe £69,000 on the loan. AFOOL

Sorry just to add my wife and i have only seen a loan agreement not an insurance policy

Thanks for the quick response i will read throgh and start as soon as possible.

Can anyone help My wife and i at the point of dispair. In 2006 we foolishly ran up considerable debts on credit cards and applied for a consolidated loan with Barclays. I have been with the bank for 30 years and trusted them. We took out a loan for £58,000 with repayments of £440 per month. He then suggested a saving scheme of £110 a month which after 5 years we would recieve a lump sum of £14000 which included insurance should anything happen to us. This left my wife and i payments of £1000 a month for our mortgage and £550 for the loan (this payment has now gone up by 20%) although our earnings were only £2300 per month combined. I know this sounds crazy but we were desperate with 2 small children to support and i had only been in employment for 1 month after being self employed. My wife and i quickly fell into the same trap and we had to beg for money from my relatives but this has come at a huge personnal cost. We approached the bank to extend our mortgage in April 2008 only to be told our loan was £72000 not £58000 and that we must repay the whole ammount we were devastated. On exanination of our agreement we have found that we are paying for ppi as part of the loan at 10.5% and we must continue to pay this for over 2 more years or loose the lot. We are drifting into the same abyss. We were considering a law firm to help us challenge the validity of the loan or do you think we will be fleeced again. 3

Hello The reason for the name AFOOL is in regards to how i really feel. My wife and i took out a consolidated loan over 25 years for £58,000 and we were advised to take a policy in the words of the salesman like a saving scheme of £14,000 which we would recieve back after 5 years if we took out a ppi scheme. We trusted Barclay's without question as i had been with the bank for nearly 30 years.My wife and i readily accepted the loan to pay off credit cards. My wife and i quickly ran into trouble as her earnings were only £800 per month and mine was £1500 per month of which we had to pay £1000 mortgage and £500 loan and had 2 small children. Within 2 years we were in credit card arrears and we have been helped by family but at a huge emotional cost. Having got back on an even keal we attempted to restructure our mortgage only to be told by the bank we would be charged the £14000 ppi if we wanted to take out a mortgage with the Woolwich so the loan we took out for £58,000 now becomes £72,000. We are distraught and are finding life hard as the bank has continuid to increase our interest payments which are up from 8.2% to 10.5%. I have contemplated using a law firm to assertain whether this loan is legal as we are feeling more and more desperate can anyone please help!