PPI claim or takethe benefits

[brownsugar7230]

Hi there first time user so here we go haha. i have recently received a letter from my bank reference misold PPI on my credit card. had the card since 2005 - present. the balance on the card at present is 2000. didnt no about PPI until i receive this letter so must of been misold or miss informed. here the dilemma, Am now unemployed so should i claim from the misold insurances and let them cover my repayment for now or make a complain and hope for the best meaning i get some money bad for misold hoping it more than my present balance.

help please......

[enaid]

Re: PPI claim or takethe benefits

Well just my opinion but I doubt they would have written to you if there was a chance you could claim on the policy. I would check your policy see if you are covered but I doubt it personally, which card is it?

[brownsugar7230]

Re: PPI claim or takethe benefits

Its barclaycard

[brownsugar7230]

Re: PPI claim or takethe benefits

when i spoke to Barclay card on the phone there 2 option 1. make a complain an see what happens 2.they can now cover 10% of my balance for 1yr or until i find employment which ever comes first

[Bill-K]

Re: PPI claim or takethe benefits

Hi and welcome, BrownSugar. I'm inclined to agree with Enaid, and even if you could make a claim on the PPI policy itself, this will probably only pay your minimum monthly repayments for a limited period, and you would then be back to square one. Chances are that the debt will not have been reduced during this time, as the monthly interest on it would probably be about the same as the minimum repayment - so in perhaps 6 or 12 months time, you would have the same debt still payable.

If you make a successful claim on the PPI, then this will substantially reduce the debt - or even wipe it out completely. As a VERY rough estimate, if you opened the card account in April 2005 and slowly increased the balance owing from zero to £2000 as of now, then the reclaimable PPI would be around £700. Assuming an account APR of 29.9%, the reclaimable interest on this would be around £1000, so the total claim would be around £1700, leaving you with a debt of just £300. This would leave you better off, as you would be repaying less toward your credit card debt - and it should also have no adverse effect on any benefits you are claiming. It's all rough estimates, but that's my take on this, FWIW.

[brownsugar7230]

Re: PPI claim or takethe benefits

Thanks this really help is just that the Barclay card customer service advise said they will pay 10% of the balance for 1year which i calculated to b £200,which when times by 12months should pay of the balance but i find it sounds to good to be true so just need so Expert advices which you provided

many thanks.. still no sure weather to make a claim or get so unemployment benefits for PPI

[Bill-K]

Re: PPI claim or takethe benefits

Thanks for the extra detail, BS. So, Barclaycard will pay 10% of the balance for UP TO 1 year. This actually would mean £200 in the first month, then £180 in the second month, etc., etc., so you would get a MAXIMUM of approx. £1400 - and ONLY if you remained unemployed for 12 months or more.

It is possible to make a successful claim under a PPI policy, and STILL claim that it was mis-sold afterward. Whatever was paid out to you under the policy would of course be deducted - and you must bear in mind that the fact that you made a successful claim could be used as grounds to refuse your later mis-selling claim. However, if the PPI was added to your account without your knowledge, or you were given the impression that it was compulsory - then your reasons for claiming that it was was mis-sold should not be compromised by this.

From what you have said, my gut feeling is to make a claim under the PPI policy for the 10% unemployment 'benefit', and let's take it from there. If the claim is refused, then put in a claim for mis-selling. If the claim is granted, then take the benefits for up to 12 months - and then put in a claim for mis-selling - IF you still have good reason to do so.

[enaid]

Re: PPI claim or takethe benefits

Just a note if you are going to claim on the policy please get the offer they have made ie the 10% off the balance for one year in writing and is it a one off payment or actually 10% per month off the balance.