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Claiming back PPI from Barclays

If you have taken out loan protection insurance or credit card Payment protection insurance from Barclays then you are probably aware of the mis-selling scandal and the fact you may be entitled to a refund worth thousands of pounds.

The PPI mis-selling scandal started in 2006 when The Office of Fair Trading and The Financial Services Authority (FSA) investigated the cover and the way in which it was being sold by lenders. Their investigations revealed widespread problems, and as a result, there has been a huge increase in customers claiming back PPI from Barclays and other lenders.

It is thought Barclays has sold approximately 1.6 million – 2.4 million policies, but it is unknown how many of these may have been mis-sold. In 2009 and 2010 The Financial Ombudsman Service reviewed approximately 8,000 regarding Barclays PPI sales. It is likely that many more cases were examined and settle in-house by the lender and it is thought they have so far paid out in the region of £200 million in compensation. In May 2011 it was announced a further £1 billion had been allocated to compensation victims of mis-selling who were claiming back PPI from Barclays and who may do so in the future.

Barclays’ attitude to the payment protection scandal has been somewhat different from most of the major UK lenders. In December 2010 it supported the British Banking Association’s decision to request a high court review of new FSA guidelines. While the decision was pending Barclays choose to place claims on hold. As a consequence, when the court found in favour of The FSA in April 2011 Barclays and most other lenders had a significant backlog of claims. Barclays made the unique decision to deal with the issue by settling all the cases of customers claiming back PPI from Barclays before 20th April on a ‘No-quibble’ basis. This means those whose cases were caught up in the judicial review will automatically receive a full refund. It will enable the lender to clear the backlog and to address new claims more quickly. All new cases will be dealt with on merit and will not receive automatic payouts like those registered during the judicial review.

In order to be eligible to make a complaint and begin claiming back PPI from Barclays, a customer needs to show their policy was mis-sold. If you believe that you were told something that was incorrect or misleading when you took out your cover it is possible your policy was mis-sold. Examples of this may include being told you had to have the cover or that it would improve your chances of being approved for the loan or credit card.

Your policy may also have been mis-sold if there was something about your circumstances that made you unsuitable for the cover. If you had a pre-existing medical condition, were over 65 or were self-employed, for example, it is likely you should not have been offered the cover in the first place.

Many customers were also sold insurance that could, at best, only be of very limited use to them this may include customers who were entitled to sick pay from their employer or who had cover in place elsewhere.

For more information regarding making a loan insurance claim call the team on 0207 471 2000.

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Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

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