Barclays Bank Rip-Off

  wids001 09:25 03 Jul 2009
Locked

Took out a loan with Barclays that included Personal Protection Insurance a couple of years ago with a monthly repayment of £444 (including £91pm PPI)at 9.6% interest. Recently I decided to knock the insurance on the head and was told I'd save the £91.00 a month. Checked my agreement and that stated that I could "cancel the PPI at any time. Just contact your branch... ".

I'm now told by Barclays that if I cancel the PPI I will need to take out a new loan with them for the balance. However by doing this I will now be paying £404 per month without the PPI on this new loan - If I was to add PPI to it I would have to pay over £660pm!

Why - because the interest rate on my new loan will be 15.75%!!!!

Rip off or what .....

  Grey Goo 09:34 03 Jul 2009

If there is no penalty for early repayment could you get a loan elsewhere and pay Barclays off.

  Kevscar1 09:36 03 Jul 2009

Is it a seperate agreement, did you sign to different forms.. Do you make seperate DD payments through the bank,one for loan another for PPI, if so stop the DD for the PPI.

  dagbladet 09:38 03 Jul 2009

How have you been ripped off exactly?

  wids001 11:00 03 Jul 2009

dagbladet

2006 Interest Base rates 4.25% Loan Rate 9.6%
2009 Interest Base rates 0.50% Loan rate 15.75%

plus

On the agreement it simply says I can cancel the PPI any time. No where does it state that I will have to take a new loan out to pay off the balance of the old loan minus the PPI loan amount. If the interest rate remained at 9.6% I wouldn't have a problem with it.

Kevscar

I signed one agreement and pay one DD although the cash loan and premium loan were shown seperate on the agreement.

  wids001 11:04 03 Jul 2009

Also, I originally phoned the Barclays office number on the agreement and was told by them that I would save £91.00 a month but that as the loan was held by my branch I would need to go to them to cancel the PPI. Their figure for the new loan comes out at £404 pm, a saving of only £36.00pm.

  spuds 01:09 04 Jul 2009

Go to your local CAB or Consumer Advice Centre with your agreement for further advice. There are a number of issues to consider, which one of the above organisations would be able to explain more fully.

  spuds 01:11 04 Jul 2009

Would also suggest that you look up Martin Lewis's advice website regarding this issue.

  Forum Editor 01:15 04 Jul 2009

is that the old loan was protected by Personal Protection Insurance - and the new one isn't. It's all about risk, isn't it?

  Simsy 08:20 04 Jul 2009

that the arrangement appears to indicate that just the PPI could be cancelled;

"...cancel the PPI at any time. Just contact your branch... "

But that this doesn't appear to be the case.

On the face of it I'd be rather miffed also! (I accept I'm just taking this at face value and there may be other details in the agreement!)

Regards,

Simsy

  Toneman 14:15 04 Jul 2009

But, FE, surely the insurance only protected the borrower, not the bank, don't see how the bank can seek to cancel the loan just because the borrower discontinues the insurance on his ability to repay?

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