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PPI Barclays

Did you know you could claim back PPI worth thousands of pounds from your lender? Keep reading to find out whether you could be entitled to make a claim.

In 2006 The Financial Services Authority (FSA) and The Office of Fair Trading (OFT) investigated the sale of PPI. PPI Barclays is a product sold alongside loans, credit cards and mortgages. It is meant to cover a policyholder if they cannot work by stepping in to take over repayments. The trouble with PPI is it is expensive, has a high number of exemptions and has been widely mis-sold. During the investigations by the OFT and FSA it was found that PPI Barclays had often been sold by lenders who had failed to fully train their staff or to put in place processes to protect customers from the threat of mis-sale. As a direct result of these investigations many lenders faced significant fines and the financial world was warned it needed to do more to regulate sales and prevent a repeat of the mis-selling fiasco.

Most lenders did not deliberately mis-sell PPI Barclays, but they did introduce an unhealthy culture where sales staff were given high rates of commission for selling the cover, aggressive targets and limited product information. One of the worst offenders was Alliance and Leicester who were fined £7 million for serious failures relating to telephone PPI sales. It was found that the lender had actively recommended cover to customers who may neither want or need it. Other businesses fined as a result of the investigation included Capital One, Egg and HFC Bank.

There are many ways in which a PPI policy may be mis-sold, but, roughly speaking, mis-selling usually involves either (a) being told something that was incomplete or inaccurate or (b) being sold a product for which your circumstances made you unsuitable. Some examples of each kind of mis-selling are below.

  • (a)(i) You were told you had to have the cover
    PPI has always been an optional extra. If you were told you had to have it you were given the wrong information and could make a claim.
  • (a)(ii) You were led to believe taking out the PPI would secure the loan
    The decision as to whether someone is suitable for a loan or not is based on their credit rating and their financial circumstances. Taking out PPI would never guarantee or improve your chances of being given a loan.

  • (b)(i) You were unemployed, retired or in full-time education
    PPI is designed to cover a borrower in the event they are unable to work for a short period of time. If you were not in employment you clearly were not suitable for this type of cover.
  • (b)(ii) You were over the age of 65
    Most PPI policies have an exclusion regarding people over the age of 65. This means that if you are over this age you would be ineligible to make a claim. If you were sold cover, that included this exclusion, you may be paying for something you could never hope to use.

If you believe you may have been mis-sold a PPI Barclays policy you have the right to make a claim. There is no limit to the number of claims you can make and it will not affect your credit rating or your relationship with your bank. Remember, you can also claim back bank charges if you have paid unfair fees on your credit card. To find out more call 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.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

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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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