Hi Everyone, could do with some help with my Barclays PPI

[akbuk]

Have successfully reclaimed from Barclays for 4 loans. However, the decision letters have taken off an amount off each of the total redress. This is becasue they say that I should have had a regular PPI policy and not a single premium. So, they have taken a few hundred quid off each compensation figure as the cost of the premiums for a regular monthly policy. Can they do this?

[miliitant]

Re: Hi Everyone, could do with some help with my Barclays PPI

i would say
no
no
no

they cant do that, look at this way

if the PPI policy was front loaded, that is paid in one lump sum up front, that effects the total amount of credit and total amount payable, let alone the APR

if they are saying it should have been a monthly policy then your monthly repayment premiums for the loan must have been lower. but as you were still paying the same monthly premiums

barclays owe you even more money if they are taking that line

[akbuk]

Re: Hi Everyone, could do with some help with my Barclays PPI

Thanks, I understand and you made good valid points there.
But can they actually deduct these premiums from the redress , whether calculated right or wrong?

Are they actually allowed to do this?

If not, what do send as a reply?

[Bill-K]

Re: Hi Everyone, could do with some help with my Barclays PPI

There is a FSA guideline which refers to 'Alternative Redress.' It is often used as a way of reducing the payout. Basically, if the only reason given for mis-selling the PPI was that you could have got it cheaper elsewhere, then they can make a reduction. I suspect this may be what they have done here, and you may need to look into that. I'll try and find the relevant rules - they're in PS10/12 somewhere.

[Bill-K]

Re: Hi Everyone, could do with some help with my Barclays PPI

Found it.

http://www.fsa.gov.uk/pubs/policy/ps10_12.pdf

From PS 10/12, Appendix 1, DISP APP 3.7.7 - 3.7.10, & 3/7/13 :-

" 3.7.7 E Where the only breach or failing was within DISP App 3.6.2E(9) and/or DISPApp 3.6.2E(12), and in the absence of evidence to the contrary, the firm may
presume that instead of buying the single premium payment protection contract
he bought, the complainant would have bought a regular premium payment
protection contract.
3.7.8 E If a firm chooses to make this presumption, then it should do so fairly and for all
relevant complainants in a relevant category of sale. It should not, for example,
only use the approach for those complainants it views as being a lower
underwriting risk or those complainants who have cancelled their policies.
3.7.9 E Where the firm presumes that the complainant would have purchased a regular
premium payment protection contract, the firm should offer redress that puts the
complainant in the position he would have been if he had bought an alternative
regular premium payment protection contract.
3.7.10 E The firm should pay to the complainant a sum equal to the amount in DISP App
3.7.3E less the amount the complainant would have paid for the alternative
regular premium payment protection contract. "

" 3.7.13 E The firm should, for the purposes of redressing the complaint, use the value of £9
per £100 of benefits payable as the monthly price of the alternative regular
premium payment protection contract. For example, if the monthly repayment
amount in relation to the loan only is to be £200, the price of the alternative
regular premium payment protection contract will be £18. "

[brummie]

Re: Hi Everyone, could do with some help with my Barclays PPI

Stand your ground with them. They have taken your money up front and you have demonstrated tht they were wrong. IMHO they owe you the full amount that was taken from you, plus interest at 8 % plus losses at ( i beleive 8% above, Bill? )

Please check you are happy with their offer before you accept it. You may be owed more than you think, but the offer can sound tempting.....your call!!

[miliitant]

Re: Hi Everyone, could do with some help with my Barclays PPI

i understand what is being said but the repayments were allready made and the loan ended

i would think it does not matter if the ppi was cheaper elseware

the creditor has benefited out of their own greed

so i would think 'Alternative Redress does not apply in this case

you need to be doing some digging as i do not know for sure but i would not let it go myself

[Bill-K]

Re: Hi Everyone, could do with some help with my Barclays PPI

I'm all in agreement with Militant. I just wanted to bring up what I reckon they may be using here. "Know Thine Enemy," as they say.

I thoroughly DETEST the 'Alternative Redress' - but it is what may be the problem.

If this is their stance, then we need to know on what basis they mount it. In a nutshell, what have you told them ?

[akbuk]

Re: Hi Everyone, could do with some help with my Barclays PPI

Thanks very much everyone. Bill thank you for going that extra mile to find that.

I told them I did not want the PPI at the time of takng the loan out. I didn't even realise they had added it until I started to look a little closer. I had my partners wage to rely on if I was off sick

I don't think the above applies in this case does it? I did not want PPI in any shape or form.

[Bill-K]

Re: Hi Everyone, could do with some help with my Barclays PPI

Well, it looks like the Alternative Redress is perhaps not being used here, then - which is fine by me !!! We're back to Militant's arguments, I feel. I just needed to get that cleared up, as it can be a trip-wire, sometimes.