Barclays has been at the centre of a Payment Protection Insurance scandal affecting banks and customers across the UK over the last decade. Find out how you may have been affected by PPI as a customer of Barclaycard.
Barclays Mis-sells Payment Protection Insurance
The scandal around PPI has illustrated that Barclays is one of the most complained-about lenders in regards to the selling of insurance policies on top of credit agreements to customers who did not need, want or ask for it. PPI is a product engineered to protect people when their financial circumstances change and they can no longer meet repayments. However, banks have been misleading customers to sign for payment protection in circumstances where they would not be able to claim their rights if they became ill or unemployed. Other customers were mis-sold PPI as a necessary condition of their credit agreements and thousands more are reporting that they were not even made aware they had purchased the insurance. Barclays was the most complained-about lender in the latter half of 2011, with 281, 000 complaints being made against the company.
If you have purchased plastic from Barclaycard, then you are advised to check your statements for a mention of Payment Protection Insurance. If you are not sure, you have the right to investigate your claim with the bank and they must respond to you within five working days to acknowledge this. Lenders, including Barclaycard, have been reported to have slowed claims for compensation and the ombudsman has complained to regulatory bodies that some banks have been found to be working against customers trying to assert their rights. Since new guidelines published in 2012, all banks must pro-actively write to customers and review millions of policies, turning the saga into a costly one for Barclays, one of the biggest culprits of PPI mis-selling.
Claim Directly or Through a Claims Management Company?
To pursue a Barclaycard PPI claim, you have two options. You can either claim directly with Barclaycard yourself or you could choose to use the services of a PPI claims management company.
Claiming directly means you will keep all of any successful compensation claim amount, but of course you will have to deal with Barclaycard yourself.
The alternative, using a claims management company, means you will incur a fee. This could be anything up to 30% of the total successful claim settlement plus VAT. But this way, the claims management company will handle much of the legwork for you.
If you choose the latter approach, do your research. Check the reputation of the company before signing anything and question their experience of dealing directly Barclaycard specifically. You’re well within your right to ask all the questions you want before signing anything.