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Barclays PPI

Figures released by the Financial Services Authority have revealed Barclays bank was the most complained about financial institution in the second half of 2010 with complaints totalling 294,891. The increase can, in part, be blamed on the increase in Barclays PPI claims. PPI claims have, the FSA reports, risen by 63% across the board.

PPI or Payment Protection Insurance is a type of insurance policy sold with loans, mortgages and credit cards. It aims to cover a borrower if they cannot make debt repayments due to sickness, accident or illness. The insurance has been heavily criticised; however, due to its high costs, the high number of exemptions connected to the cover and the fact it has been frequently mis-sold.

The cost of PPI on loans can vary quite considerably, but, as a general rule, policies can cost anywhere from 13%-56% of the core loan value. On a £8,000 loan it could, therefore, add between £1,040-£4,480. The cost of the PPI also attracts interest at the same rate as the loan meaning it can significantly increase debt. With regards to Credit Card PPI charges are usually applied on a monthly basis depending on the outstanding balance. The cost is usually around 79p per £100 outstanding. With a credit card balance of £8000 this would mean an approximate monthly charge of £63.20 – that’s £758.40 a year. Many Barclays PPI Claims are made by customers who feel the full costs of their PPI policy was not explained to them. If you do not feel you were told the costs connected with your policy you have the right to make a complaint.

Exemptions applied to PPI policies vary quite considerably. For example, many policies do not cover pre-existing medical conditions while other will not insure anyone over the age of 65. Most policies also do not cover common ailments such as back pain, stress or depression. If you were sold a policy without the terms being fully explained you could make a complaint.

Most Barclays PPI claims, and claims levelled at other lenders, are concerned with the sale of the policy. For a policy to be considered ‘mis-sold’ it must be shown that the policyholder was given the wrong or insufficient information at the time the cover was sold or that something about their circumstances made them unsuitable for this kind of cover.

It is not just Barclays PPI claims that have increased, but complaints regarding all lenders and services. The FSA’s figures also showed a 13% complaint rise across the banking world bringing the total amount of complaints received to 1.79 million in the six month period. The number is concerning and some commentators have suggested it shows a failure by banks to internally investigate complaints.

If you believe you have been mis-sold a Barclays PPI policy or that you may be entitled to a PPI refund all our claims team on 0207 471 2000. We have already helped more than 60,000 customers and could resolve your claim in just 8 weeks.


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