Barclays Mis-sold PPI? Opinions Please!

[banksworstnightmare]

Hi everyone,

 

I am hoping that I have got a case against Barclays re PPI, because they have had thousands from me over the past five years which has left me in a right mess with my finances.

 

The whole sorry story started back in December 2003 when I went into a Barclays branch to pay my monthly Barclaycard bill. I was only paying the minimum payment and the cashier, noticing the o/s balance was £1500, persuaded me to make an appointment with one of their advisers to chat about my finances and see if they could offer me a better deal. Unwittingly I agreed, I was only 20 at the time and thought the bank genuinely had my best interests at heart - more fool me.

 

So I attended the appointment and discussed my various debts with an adviser. She suggested that I take a loan out for £5700 to consolidate all my existing debt (credit card/store card/loan with M&S) and also a bit extra as Xmas was coming - I though great stuff, 3 years doesn't sound like a long time and I could easily afford the monthly repayments as I had a good job plus I was still living at home so no bills to worry about. We discussed how I would pay back the loan, say if I became sick or lost my job. I advised that my company paid genorous sick pay and that if I lost my job I'd find another one! Unfortunately, the scare tactics were brought out - lots of young people find themselves in difficult situations if the unexpected happens which can land you in a lot of trouble financially, make you bankrupt, affect your future etc, etc... In light of this, I thought it best to take out the insurance, at the time it all sounded like such a good deal and the adviser made me feel that she was helping me out, so I signed my fate.

 

3 years later, I feel a fool and very angry at how they took advantage of me, personally I feel because of my age. They persuaded me to take a loan out I didn't really need with an interest rate of 17.9% - I didn't have a clue about interest rates back then but if I'd have known there was cheaper out there I would have told them to shove it! With regard to the PPI - didn't have a clue about this either, I was just too naive to question it and was persuaded it was for the best. Basically, they saw me coming.

 

To make matters worse, 3 months after taking out the loan I fell pregnant... time to grow up - find a house, start paying bills, financially supporting someone else. All the debts I had consolidated suddenly ran up again and I was in an even worse mess then before! Even worse, my company announced redundancies. They were closing my dept down and were relocating whilst I was on maternity leave. I needed to get paid my maternity leave so I agreed to return to work at the new location on a trial basis as it was fairly close to where I had moved, the deal was that if it didn't work out I could still take my redundancy. Anyway I returned to work at the new location, but unfortunately it didn't work out - probs with working hours and travelling so they paid me my redundancy. At this point my baby was 5 months old and I thought it might be nice to stay at home and look after her for a while, after all I had my redundancy money! The only prob was paying back the loan but I thought to myself PPI covers redundancy I'll see what I can do. I read the insurance papers and it says it will pay out for redundancy unless it is voluntary. I wasn't sure if mine was classed as voluntary so I decided to call the legal experts that were included in the Additions package on my Barclays current account. The expert advised my redundancy was classed as voluntary and they wouldn't pay out - I took his word for it, forgetting they all work for the same company!

 

So I found another job, 3 years later I've paid the loan in full and then stumbled across this site where people are claiming mis-sold PPI back - bonus!

 

Sorry to ramble on, but wanted you to have the full story before offering any opinions. I know it's a long shot but it's worth a try - every little helps! To summarise, I am wanting to claim back my PPI because I believe I was pressurised to take it out with the scare tactics. The bank know it is unlikely to pay out and it proved totally useless to me with my redundancy. Also, I was a healthy 20 year old with a good sick record and the capability of finding a new job if the unexpected happened - which it did.

 

Any advice would be much appreciated.

 

Thanks,

 

 

 

Loan details :

 

Term of loan = 36 months (taken out Dec 2003, repaid in full Jan 2007)

Cash Amount = £5700.00

Interest @ 17.9% = £1586.04

PPI = £941.49

Interest @ 17.9% = £261.99

Total repaid = £8489.52!

[banksworstnightmare]

Anyone please??

[reidnet]

http://www.consumeractiongroup.co.uk/forum/ppi/61081-ppi-some-notes-claimants.html

 

Have a read through the above, I have tried to make it a simple as possible to understand, It explains the different Types of PPI and I have added a couple of Template letters etc.

 

Good Luck

and dont be afraid to ask anyone in here for help if you need it..

 

Ian

[banksworstnightmare]

Hi Ian - thanks for replying,

 

I have read the notes and threads a couple of times but the majority of people claiming have either been told they can have the loan on condition that they have PPI or their circumstances mean the PPI would not pay out as they don't meet the criteria e.g self employed.

 

I have read the Barclays thread by Milo, where he was also pressurised into taking PPI through scare tactics but he was also told he would need to have PPI to get the loan - where it was never a condition with me.

 

I know it's a long shot but in your opinion do you think it's worth a shot at trying to claim the PPI back as I really had no reason to take it out, I just felt bullied into it, and then when I did want to make a claim for redundancy against it, I was advised they wouldn't pay out.

 

Am I just clutching at straws here?

 

Thanks and good luck with your claim.

[reidnet]

Hi,

If you felt that you were Bullied / Pressurised into taking out the PPI then you have a case for trying to reclaim the PPI.

 

Basically what do you have to loose ?.. Nothing..

 

Ian

[banksworstnightmare]

Thanks for that Ian, I really appreciate your advice. I have read some of the advice you have given others so I know that you know what you're on about! All I needed was a second opinion on my case and you have given me the confidence to try and reclaim this one - pity it can't be as straight forward as the bank charges!

[reidnet]

I wish it was as easy and as starightforward as the bank charges, Hopefully with the ongoing Campaign against PPI and the way the FSA are starting to act on these companies maybe one day it will be a lot easier..

 

I did have one PPI claim that was easy, but the other one I am fighting I have been at since around September / October But feel now as it is at court it is getting that bit closer.

 

Ian

[hellhasnofury]

Hi Ian - thanks for replying,

 

I have read the notes and threads a couple of times but the majority of people claiming have either been told they can have the loan on condition that they have PPI or their circumstances mean the PPI would not pay out as they don't meet the criteria e.g self employed.

 

I have read the Barclays thread by Milo, where he was also pressurised into taking PPI through scare tactics but he was also told he would need to have PPI to get the loan - where it was never a condition with me.

 

I know it's a long shot but in your opinion do you think it's worth a shot at trying to claim the PPI back as I really had no reason to take it out, I just felt bullied into it, and then when I did want to make a claim for redundancy against it, I was advised they wouldn't pay out.

 

Am I just clutching at straws here?

 

Thanks and good luck with your claim.

 

Did you watch the whistleblower programme about barclays bank and their scandelous selling tactics. I bet the employee had a great big smile on their face when they bullied and haressed you into taking a ppi.

 

Maybe its time for payback8)

Just a thought:grin:

 

Reidnet is a totally right(as always) what do you have to lose. But if you pursue it, you will win at lot, and gain great personal satisfaction in doing so.

 

If everybody who claims back their mis-sold ppi and I beleived it to be thousand they wont be smiling for much longer. Ha ha

[banksworstnightmare]

Thanks for your support Hellhasnofury.

 

I meant to watch the whistleblower programme but I was engrossed in the CAG website LOL!

 

I bet the salesperson did feel very pleased with herself when I took the PPI. They are all just moneygrabbers and I'm determined to get everything I can back from them. You know, even after I took out the loan she tried to make even more money from me. I told her I wanted to pay off my overdraft with the loan (it was only about £350.00) but she insisted that she left an overdraft of £100 on my account but I was very firm with her and told her that I didn't want one at all so she had to cancel it! Unfortunately though, my overdraft is now back at £550 so they got what they wanted in the end

[manchestman]

Hi

Unfortunately, no advice here, just support after having read your opening story.

I do hope you achieve your goal and nothing ventured, nothing gained!

Good luck

[banksworstnightmare]

Cheers Manchestman - I'm just in the process of drafting my first letter to them, I'll post it on my thread once it's finished and see what everyone thinks!

[banksworstnightmare]

Right, I've drafted my first letter to Barclays requesting repayment of the PPI plus interest. I've adapted one of the template letters on Reidnets thread.

 

Is it ok for me to give them a 14day deadline before referring to FOS, as I know they will probably respond to me advising they will get back within 8 weeks?

 

Let me know what you think - any suggestions/corrections would be appreciated.

 

Thanks:-)

 

I believe I was mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

 

I took out a £5700.00 loan at your Leeds Albion Street branch on 23.12.03 and also bought a payment protection policy which has cost me an extra £941.49 over the life of the loan. The total amount of my premium plus interest was £1203.48.

I strongly feel that I was pressurised into buying the PPI policy. During the loan application your salesperson discussed with me how I would keep up the repayments should the unexpected happen and insisted that I take out additional cover. I advised that I did not need PPI as my employer provided a generous illness and redundancy package, and that should I lose my job for any other reason I was quite capable of finding new employment. Your salesperson continued to insist that I buy the policy using, what I can only describe as “scare tactics,” for example, gaining a poor credit rating which would affect any future lending decisions, such as an application for a mortgage and the threat of bankruptcy, which apparently happens to a lot of young people. Being 20 years old at the time, this seemed quite a daunting prospect and so I felt inclined to take out the cover.

 

I do not believe being bullied into buying this policy as part of the loan was a fair and reasonable obligation as I did not want this insurance and said at the time of taking the loan that I did not need it. In pressurising me to buy this policy, you have breached paragraph 8.6 of the Banking Code, to which you are a signatory.

 

I am requesting a full refund of all my insurance payments, plus interest, which total £1203.48.

If I do not receive a favourable response from you within 14 days I will pursue this claim through the Financial Ombudsman.

[banksworstnightmare]

Anyone have any comments on my letter?!

 

Thanks:p

[reidnet]

Looks good to me,

Short and straight to the point, hopefully they will Understand that you mean business..

 

Good Luck

 

Ian

[banksworstnightmare]

Cheers Ian - shall send it out first thing tomorrow!

[reidnet]

No problems..

 

Good Luck

[banksworstnightmare]

Posted my 1st repayment request letter to Barclays on 05.04.07 - which they received on 09.04.07. They then sent me a pretty standard letter advising they would respond by 08.05.07. To my surprise I actually received their response on 19.04.07, which is very quick for Barclays! I have posted a copy of the letter below, it is from Mrs Jayne Summers - Customer Relations Manager:

 

Thank you for your letter dated 5 April.

 

You have advised that when applying for a Barclayloan in December 2003, you were pressurised into taking loan protection and that the advisor used scare tactics and insisted that the cover be taken.

 

Please accept my sincere apologies for the frustration and inconvenience that the above has caused to you and thank you for bringing this to my attention.

 

I am concerned with the comments that you have made and have today investigated this matter with Jane Childs, the Assistant Manager at Albion Street in Leeds.

 

All our advisors undertake full training before they are permitted to sell products/services to customers. They are advised that customers should at all times be fully aware of any products offered or sold to them. Barclays does not encourage or allow advisors to sell services to customers when it is not appropriate. Jane has advised me that the member of staff who discussed the loan with you was one of her most valued and professional Personal Bankers during her time at the branch.

 

I must point out at this stage that Payment Protection Insurance on Barclayloans, is not a condition of sale.

 

Prior to you opening the loan account you did sign Barclayloan forms of agreement which clearly stipulated that the loan agreement included payment protection. If you were unsure about any aspect of the loan agreement, then the forms of agreement should not have been signed. By signing the documents, you have confirmed that you fuly understand the terms and conditions of the loan and agree to them wholly.

 

Once the loan was opened, you would have received a Rights to Cancel letter, giving you time to cancel the loan and obtain a full refund. This gives you a cooling off period to enable you to change your mind.

 

You were then issued with a Payment Protection Policy Certificate from Barclays Insurance Dublin, which clearly outlined the terms and conditions of the protection cover. Furthermore if you are unhappy with the cover provided by the policy, you are then given a 30-day period in which to cancel the payment protection and receive a full premium refund. I have enclosed for your records, copies of the Forms of Agreement and your Right to Cancel, that clearly show the Barclayloan with insurance and the total amount payable.

 

At any stage during the loan, you have also had the opportunity to request assistance in restructuring the loan to a loan without protection. You would then have been given a partial refund of the protection premium, depending on when the loan was to be restructured. I can see from our records that your loan was repaid in December 2007 and that the loan ran the agreed 36 months.

 

Therefore, bearing in mind the opportunities to remove the protection that have been stated above, I do not believe that the protection was mis-sold on this occassion.

 

The end of the letter is just the usual crap.

 

This letter has really annoyed me because they have missed my point completely about why I think I was mis-sold the policy. Just because I never cancelled the policy, they think I was happy with the whole situation and so do not believe it was mis-sold.

 

So last night I spent the best part of 3 hours writing my response. I wanted to make it crystal clear why I was mis-sold the policy and have included a few interesting facts I found on the Internet. I will post this separately or this post is gonna get too long!

[banksworstnightmare]

Ok - here is my response to their letter (it's 2 pages long!)

 

If anyone has any comments/improvements, or if doesn't make sense, please can you let me know. The letter is going to be sent on Monday 23.04.07.

 

 

Dear Mrs Summers,

 

Thank you for your letter dated 18th April 2007.

 

I strongly disagree with your beliefs that the payment protection insurance policy was not mis-sold to me when applying for a Barclayloan in December 2003 and request, once again, that you give me a full refund of my premiums, plus interest paid, totalling £1203.48.

 

You write in your letter, ‘Barclays does not encourage or allow advisors to sell services to customers when it is not appropriate.’ This contradicts my letter of 5th April 2007 as I am complaining that I was pressurised into buying the PPI policy as I did not want the insurance nor did I need it, and you have allowed an advisor to sell this to me retrospectively.

 

My understanding is that PPI covers loan repayments in the event of accident, sickness, unemployment and death. I advised your salesperson during the loan application that I did not need the cover as my employer provided generous incapacity benefits, a generous redundancy package and in the event of death, a lump sum payment. Even after explaining the reasons why I felt I did not need the insurance your salesperson insisted that I still take out additional cover and scared me into doing so by using clever statistics on the prevalence of illness and unemployment, and the threat of bankruptcy if I was ever unable to make the repayments. My view is that it was inappropriate for me to take out PPI and in pressurising me to buy this policy you have breached paragraph 8.6 of the Banking Code.

 

You also write about the numerous opportunities I had to remove the protection from the loan and receive a full premium refund; 5 days stated in the Rights to Cancel letter and a further 30 days upon receipt of a Payment Protection Policy Certificate from Barclays Insurance Dublin. The reason why I did not cancel the protection at this time is because your salesperson made me believe that I needed it. You mention that at any stage during the loan I could have cancelled the PPI and would have received a partial refund. I did, in fact, enquire about this in June 2005 when I was made redundant, as I knew that I would not be eligible to claim on the policy until I had been in continuous employment with a new company for 6 months. The salesperson that I spoke with at a Barclays branch in Halifax advised that to do so, I would have to take out another loan for approximately £4500 excluding interest to re-pay the current loan with PPI and then I would receive an insurance refund of approximately £250. I had already made 18 monthly repayments towards the current loan totalling £4244.76 and to ask me to take out another loan for £4500 excluding interest, when the initial loan was for £5700, just so that I could cancel insurance that in the event of a claim would not pay out, and receive a £250 refund, seemed ludicrous. My only option was to carry on repaying the current loan with insurance, as it was a great deal cheaper and the loan would be repaid sooner.

 

My experience with Barclays has taught me that PPI is purely an additional way for you to make profit and that you do not have the customers best interests at heart. An investigation carried out by the Guardian newspaper and printed on 6th March 2004 exposed how Barclays Bank were making huge hidden profits by encouraging customers to take out over priced insurance on loans. Documents seen by the Guardian revealed that in 2000-2001 you made £240m profit on the policies and that as few as 1 in 20 policies result in a claim. It was also revealed that Barclays set a target for 70% of all its loans to be accompanied by PPI, with staff strongly incentivised to meet the target. This is backed up by the Barclays Corporate Responsibility Report 2005 which states; ‘Responsible selling – We no longer have product based sales targets for individual members of staff. We have replaced them instead with a system that we think is fairer for our customers: there is one overall financial goal for each branch, but an equally important parallel target relating to local customer satisfaction levels. Our UK branch employees are rewarded on that basis.’ The report also states; ‘Our view is that PPI is a good product as long as it is sold in the right way, to people who need it.’ I did not need the insurance, so why was I sold it? When I applied for the loan I was 20 years old, healthy, had a secure job with excellent benefits and no major financial commitments. My opinion is that I was an easy target due to my age and naivety, and was used in order for the salesperson to achieve their individual sales target. I have no doubt that the member of staff who discussed the loan with me, was one of Jane Childs most valued and professional Personal Bankers, as she was probably raking in the most profit. Her professional manner and caring nature convinced me that I needed a loan to consolidate my existing debts and also that I needed extra insurance. If I knew then, what I know now, I would not have let Barclays take advantage of me in this way.

 

Overall the PPI was of no use to me, as I suspected it would be from the onset. My circumstances changed drastically throughout the term of the loan, but I still managed to pay the loan in full and on time, even whilst living on £100 per week when I was on maternity leave.

 

I trust that this now clarifies my position and that you will act promptly to resolve this matter. I shall allow a further 14 days for you to reply. If you do not respond, or you do not respond positively, within this time period, I will pursue this claim through the Financial Ombudsman.

 

Basically, up until 2005, Barclays set individual sales targets. As the Guardian reported, individuals were strongly incentivised to sell loans with PPI. As I took out my loan in December 2003, this means that Barclays were working to individual sales targets and this is why I believe I was inappropriatley pressurised into taking out the protection.