My partner had a personal loan of £15000 with Barclays and they more or less told him that if he did not take out their PPI he would not get the loan.

Last year due to unforseen circumstances he had to consult a Debt Management Company and the balance remaining on the loan was transferred to them and he is now paying a reduced rate.

Barclays wrote to him informing him that the PPI had been cancelled because of this.

I was wondering whether he may be entitled to a partial refund of the PPI as he never made a claim and paid it for over 4 years.

Would it be possible for him to make a claim for mis-selling even though the loan is now paid through a DMP?

I would appreciate any advice ffrom you "clued up" people out there.

Many thanks

C.

Your Partner should look to see whether Barclays should have been paying out the Debt repayments under the PPI Policy they had insisted he took out, or whether in fact theis Policy had more get out water holes than a colander?

If that was the case and it was unlikely the Policy would have ever paid or covered your Partner, then it is almost certainly a mis-sold Policy.

Have a look at the actual Policy terms to see whether it should have covered your Partner's predicament before he was compelled to see the Debt Management people. Then I wonder, why did the Debt Management people not look to see whether there was cover for the payments of the loan?

Or alternatively was this Debt Company more interested in taking over the loan and repayments, for their own personal gain, than in actually helping your Partner to resolve his debt issues?

If the Policy looks as though it covers the situation, your Partner ashould write to Barclays and ask them to cough up, all of the payments they should have made and for the Loan to be transferred back, as long as the Policy continues to make the repayments.

Sometimes these Policies only cover say one year of repayments and a Borrower is not back on their feet and running by the end of that year, with income suffciently recovered to take over the repayments themselves, they are then left struggling once more.

If this is such a pPolicy with limited repayments and things do not look as though they will get better by the limited time nature of the Policy payments, then simply require Barclays to pay to your Partrner, the money that should have been paid out as Loan Repayments and for which he has obtained some re-arrangement, regardless of the fact that he has made the re-arrangement.

Policy actually mis-sold and did not cover your Partner's situation at all. Formal complaint to the FSA Ombudsman for full compensation for mis-selling, to the extent of what should have been covered had Barclays provided the correct Policy..

Thank you for your reply.

My partner did try to claim on the policy when he was first made redundant but they said they wanted proof that he was in receipt of JSA before they would pay out and as he received a (very) small retainer from his employers the Jobcentre said he wasn't entitled.

He managed to keep up the repayments for a while by using savings and then he did some low paid agency work so was ineligible to apply.

He has now found permanent employment but this pays much less than his previous job and he lost his company car so had to buy a new one using finance! We live in a rural area so a car is vital for getting to work.

Is it worth trying to apply for misselling even though the loan is now probably classed as in default?

Typical, one of the usual loopholes through which this awful Payment Protection Insurance manages to escape.

It does not cost to make a formal complaint, since clearly your Partner's circumstances should have been taken into account and the possibility of remaining employed but with much lower income or on a retainer should have been possibilities provided for in the Insurance Contract.

You may not however win if the FSA take the view that the Bank and your Partner were equal bargaining powers and that your Partner should have asked for these circumstances to have been provided in the Insurance Contract. The Bank would have known that any person in his right mind would hang onto their job, no matter what rather than run the risk of no job, defaulting on loans, then having terrific problems finding new employment.

The FSA Application costs nothing, just a little time and effort and application, even though the Loan may now be classed as in default, through no fault of your Partners who obviously thought he had "payment protection insurance" covering his shortfall in any event when he was unable to make any of those repayments.