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PPI– the biggest financial scandal to date has been in the spotlight for a number of years. This is because of a combination of media coverage and the advertisements aimed at people who were potentially mis-sold the insurance.
The mis-selling of PPI has been the largest and most widespread financial outrage and with the vast amounts of news and information the scandal has generated- this has only increased over the years. Assessing the attributes that could lead to someone being mis-sold PPI is not as difficult as you may think and this is why we’re here to assist and assess your claim and make the claim back process as stress-free as possible.
To understand the history of PPI, it’s important to start with the fundamentals. PPI is an optional add on that covers any repayments on financial agreements such as:
PPI was created to cover policy holders who became unable to meet the repayments through a number of reasons, these include:
However, many PPI policies were mis-sold to people who would never be eligible to put in a successful claim and thus the scandal began.
The origins of Barclaycard dates all the way back to 1966 where it introduced the UK’s first credit card. Barclays saw a need to make it easier for people to do business, so Barclaycard was created and opened to everyone- making payments faster, more convenient and more secure than using cash or cheques.
Before the introduction of credit cards, people were expected to carry cash everywhere. You’d be expected to pay for everything with cash from hotel rooms to plane tickets. With the changing times and as technology evolved the UK’s first credit card was born and Barclaycard became a symbol of a more modern way of life.
Barclaycard hails from Northampton where a humble thirty people worked to convert an old shoe factory into what is now the biggest Barclaycard office to date. It remained the only credit card available in the UK until 1971.
Skip forward to 1972 and Barclaycard were dominating the homes of Britons across the UK with a range of advertisements and sponsors. The bank soon became one of the ringleaders in the banking industry introducing new ways to improve customer the experience making banking easy.
You could be owed £1,000s in Barclaycard PPI compensation if you were mis-sold the policy. Thousands of people have been mis-sold payment protection insurance by Barclaycard, customers were wrongly advised about their mortgage, loan or credit card.
The consequence is that along with the Barclaycard, several other highly reliable banks have been found guilty of regularly mis-selling PPI, of which many have been fined heavily for such a dishonest approach.
Source: FT Graphic
PPI was first bought to light in 1998, by Which? Magazine when they questioned the products value. The product was under scrutiny because of the expense and eligibility of certain people and their circumstances. Despite the widespread disgrace of many banks across the UK, PPI policies were still being sold until the Financial Services Authority released a report in 2005 on PPI and the poor practices that were being used to sell policies.
A year after this many small companies who provided PPI were being punished with large fines from the FSA for their role in mis-selling policies. It was from 2007 onwards that major financial establishments who thought they were untouchable began to feel the walls closing in. With trust depleting, Barclaycard came up with a strategy for restoring the relationship and loyalty- allowing customers to claim back PPI.
Research in 2008 suggested that over 2 million people in the UK had been paying for PPI policies that they had no chance of being able to claim on. A further 1.3 million people were believed to have been sold the insurance on the provision that that was the only way they could be approved for a line of credit – which is of course false.
Barclaycard were one of the many lenders that set aside millions to compensate customers who were mis-sold PPI.
The mis-selling of PPI has dated back as far as the 1970s, these policies were mis-sold in a variety of ways. Once the banks realised how successful and profitable these policies were, they then actively encouraged their salesmen with the promise of hefty commissions to sell the insurance to customers; even knowing that in some cases they were selling a customer a completely useless product.
Although PPI itself is a totally innocent policy, in many cases it was added onto a customer’s policy and they were completely unaware they had the insurance. This meant that many customers were paying for the policy due to the hidden fees in their monthly charge all along.
Salesmen would often use the technique of pressuring their customers into buying a policy. Banks pressured staff to use any technique they could to sell these policies. If customers were given the full brief about their loan and sales staff went on to encourage and push them to take out PPI, then this could be classed as mis-selling. Salesmen would ask open ended questions making it hard for people to just refuse the policy outright.
Some sales staff, were requested to use underhand techniques from the bank in order to sell the PPI. The policies sold to people would not have covered the individual and therefore it would leave them unable to claim on the policy should something happen to them or their employment status.
The terms and conditions of the policy were not fully explained and therefore not outlined at the time of sale. It would cover all instances of illness and absence from work, however it did not cover things like mental or stress related Illnesses despite being advertised as such.
Well, in order to find an answer to this question, you need to answer the following questions:
If the answer to any of these questions is yes, then you may be eligible to go ahead and make a PPI claim. As per the law, Barclaycard is responsible for offering complete and precise information about any insurance product on offer. Therefore, if they have failed to give you the necessary details about PPI, you could be entitled to claim thousands of pounds from it for mis-selling the policy.
In order to have a valid PPI claim and get a hold of what is rightfully yours, you will need to provide Barclaycard with as much information about your PPI claim as possible. According to Barclaycard and most banks, the information that is required of you is as follows:
If you have attempted to claim back PPI and you were rejected, then don’t give up. You can contact the FOS (Financial Ombudsman Service). They will independently assess your claim and decide if your case is worth pursuing or not.
The Financial Conduct Authority has introduced a PPI ‘claim deadline’ for 29th August 2019.
It is essential that if you believe you were mis-sold PPI at any time check free with us today before it’s too late.
When PPI was exposed and publicised, Barclaycard members were sent letters telling them that they may have been part of the mis-selling and this resulted in many being eligible for a refund. It was after this that people could contact Barclaycard and send details of their case and provide any paperwork that could support the belief that they were mis-sold.
All banks are helpful when it comes to claiming PPI. Barclaycard provided customers with the necessary PPI forms to fill out in order to ensure that when making a claim, they supply the correct information. This is necessary in order to assess if a customer is eligible to make a claim rather than the bank needing further information.
If you had a Barclaycard, you should check immediately whether you had PPI attached on it.
It’s surprising and shocking when you realise that you are actually eligible for compensation as there are millions of policies, which are still left unclaimed.
If you have been told that you had to buy insurance from the same company that provided you with the credit card? If yes, then it counts as mis-selling. If any of the following scenarios have occurred to you then you could have been mis-sold a PPI policy.
You can check your bank papers related to Barclaycard and find if you have any policy attached to it. You may not have PPI mentioned in the bank papers, but you still may have it with other names. So, look into the papers meticulously and check if there are terms such as “Insurance cover”, ASU (Accident, Sickness and Unemployment) cover.
You can even check your bank statements as the charges deducted for the policy may be reflected on it. Another way to check if PPI is added on to your Barclaycard is to check it through our Free PPI check online tool. You can check whether you have a PPI attached to your credit card by simply providing the information that you have. We at iSmart follow the Data Protection Act and keep all information private and confidential.
Barclaycard being one of the leading credit card providers in the UK have been front-runners in the PPI scandal.
In most of the cases, PPI was added to a credit card without the customer’s knowledge and was being hidden away within the monthly repayments. Sales Advisors would often use fraudulent sales tactics when it came to attaching policies.
In other cases, some sales staffs were asked to use whatever techniques they could in order to sell PPI to consumers. The policies sold in a lot of cases wouldn’t cover the individual and leave people unable to claim on a policy.
Another way of mis-selling happened when the sales person failed to clarify to the customer that a PPI policy was optional and they were free to opt-out or purchase the insurance elsewhere.
PPI mis-selling can be in form of any of the following:
If you suspect that you have been mis-sold a PPI policy, you should act now and complain to your provider. You can take your claim to the Financial Ombudsman Service (FOS) even if Barclaycard rejects your claim.
In 2015, the Financial Conduct Authority (FCA) gave customers who had their initial complaints rejected by their finance provider or banks the right to appeal to the Financial Ombudsman Service. This meant that thousands of people who initially had their claims rejected were allowed to have a second chance in claiming back mis-sold PPI. This means that Barclaycard would pay back thousands of PPI claims that have been wrongly rejected.
Until very recently, PPI was sold at the time you took out a credit card. Policies were often sold to people when they weren’t even eligible for cover.
The banks were told 2 years ago to re-examine complaints they had already rejected. The new rules suggest that they will also have to contact all past PPI customers – even those who have never complained.
The FCA has confirmed that the deadline for making a claim will be 29 August 2019. This means if you’ve got a mis-selling claim over how PPI was sold; it must be received by the firm you’re complaining to on or by 29 August 2019. Miss it, and the complaint won’t be considered.
Barclaycard has often asked customers claiming PPI compensation to complete a task before starting the process. Once this task is completed the customer will be handed a receipt of acknowledgement by the bank. You would then hope that the compensation process would begin in earnest after receiving the acknowledgement.
However, after a few weeks, Barclaycard will return to the customer asking for the exact same thing. Any questions from the customer’s side will be met with a denial by the bank that the process was ever started. Such delaying tactics are employed by the bank in an effort to frustrate the customers so that they get worn down and thereby give up their claims. But if you think you’re due a refund it’s important to keep trying. Remember that the banks want you to give up.
Normally, for a PPI, you pay about 15% of the balance amount. In some instances, it could rise to up to 30% of the balance amount. It might not sound much initially, but it turns into a big amount later. For reclaims, the compensation amount could be thousands of pounds. The average compensation paid out by banks to customers so far is over £2000.
Calculating the total amount you are owed can be complicated and is often unnecessary as the bank will do that for you. It’s possible to calculate the total cost of your insurance, which will give you a rough idea as to the amount which you can claim. This also depends on the amount you are entitled to claim for which can include either the entire amount or a percentage of it.
If you have any outstanding debt with your bank then your PPI compensation can be used to pay it off. On some occasions your compensation offer may be lowered due to a process called comparative redress. This occurs if the lender decides that you were sold the wrong type of PPI instead of admitting to mis-selling PPI in the first place.
The first and most important step when looking to claim PPI compensation is to check your policy and confirm if you have paid for a PPI policy. Find all related documents and make copies of them. This includes any document that proves you have a PPI policy and shows you making payments for it.
Once you gather the evidence, contact the financial institution that sold you credit card and ask either via phone or by writing an application whether you had taken out PPI. Most big lenders should be able to verify if you have had PPI or not over the phone. You can even check it through our “Free Check” Online tool.
Once you are sure of having paid for PPI, either write to or phone the lender who mis-sold PPI and ask for a refund. Sometimes, it’s possible to conclude your whole complaint by phone. Customers of Barclay’s banks or Barclaycard can also start a complaint through the PPI portal once logged in to online banking.
If your bank fails to respond within eight weeks, then you can send a letter of complaint to the FOS (Financial Ombudsman Services). You will be asked to fill out a questionnaire by the FOS to decide if you have been mis-sold PPI.
At this stage, you might hear back from Barclaycard with an offer to compensate for mis-sold PPI. It is important to check if you have been awarded the full compensation or whether you have been underpaid by your bank.
Understanding your offer letter, what is the Money you are being compensated for?
If your bank has upheld your complaint, it means you will be compensated for the PPI that you were mis-sold . The compensation amount will comprise of three main parts:
If your application for PPI refund was rejected in the past and you didn’t take it to the Ombudsman then it would be worth doing so now. Till date, more than 60% cases have been ruled in the customer’s favour by the FOS.
If your PPI compensation request was rejected within the last 6 months, then you can go directly to the Ombudsman. However, if your complaint is more than six months old then it could prove to be problematic to re-claim. There are certain exceptions to this rule such as:
If you have failed to reach a satisfactory conclusion with your bank, then you should proceed in making a formal complaint to the Ombudsman. The FOS is an official independent service tasked with the responsibility of settling disputes between financial institutions and customers. The Ombudsman will decide if your PPI policy was mis-sold to you by your card provider or not. The Ombudsman can only do so if eight weeks have passed from the date of your first complaint letter. When filing a complaint with the Ombudsman ensure that you do so by also providing full details of the PPI policy.
The FCA plans to impose a deadline for PPI claims by around June 2019. Efforts are being made to enforce the deadline by mid-2018. This announcement is likely to be followed by a public awareness campaign midway throughout this year. The PPI communications campaign will be funded by 18 firms who according to the FCA were the biggest culprits in the PPI scandal. These 18 firms constitute nearly 90% of all the PPI complaints and Barclaycard are one of them.
If you think you may be a victim of PPI mis-selling, follow this step-by-step guide and tips provided below:
The first step is to find out whether you had insurance on your credit card account. Either write or phone the lender and ask.
Most big lenders will be able to tell you by phone whether you’ve had a PPI, either now or at some point in the past.
While it isn’t always necessary, as you can start a reclaim without it, if you don’t have a copy of your agreement or T&Cs, you can contact Barclaycard to ask for a copy (make sure T&Cs date back to the time of your agreement as terms change over time).
What to ask depends on whether your account is still open or closed.
Open account: Here lenders can ask for £1 to provide a copy of your agreement but not all do so you could include a £1 cheque to speed it up a little.
Closed account: Here you can ask for a full breakdown about your whole account specifically including the insurance. If it takes longer than 40 days, report it to the Information Commissioner. This can cost £10 so you could include a £10 cheque.
The next thing that you can do is go through the checklist below. Sellers of PPI have a responsibility to ensure you understand the nature of the product, and that it’s appropriate for you. All policies will have exclusions, and you should have been told about them. As most policies are bought alongside a financial product rather than on their own, the key issue is-
What was said at the point you were sold the product?
Here are the key mis-selling categories. If you fit one or more of these you probably have a case:
It’s the most common complaint made by consumers who were led to believe that they must buy a policy from the same provider as the credit card in order to be accepted for the product. This is deemed as mis-selling.
Any company that subscribes to the Lending Code agrees it won’t insist you buy an insurance product from it. Therefore if the Barclaycard sales person:
Have you just checked your credit card statements and found that you’ve been paying for insurance, but didn’t realise until now that you had it, or what it’s for?
Some old agreements (pre-July 2007), may have used pre-ticked boxes so you had to opt out of the insurance rather than opt in, which is unfair. So, always check it.
This covers anything from the fact you were already covered through work or your partner, the policy not being what you agreed to, if you got credit card cover and it wasn’t explained, or if you thought it was a joint policy but in fact, it was only in one person’s name.
If you were unemployed, check if the policy included unemployment cover. If it did, the unemployment cover is worthless – this should’ve been pointed out.
If you were self-employed, check whether you were eligible for a payout if your business went bust – if not, and it wasn’t pointed out, you may have a case.
Most policies exclude existing medical conditions, meaning you’re unlikely to be covered for any medical problems you’ve had before you took the policy. You should’ve been asked about this, and informed that the policy could be affected.
The regulator has also stated that it wants to see better practice. Many major providers, including GE Money, Egg (now the responsibility of Barclaycard) and Capital One have been fined for “not treating customers fairly”. If yours has, it’s very likely you’ve a case.
Write or call the company that sold the policy and ask for a refund.
It is sometimes possible to deal with your whole complaint by phone. Barclays’ customers can also start a complaint via the PPI portal once logged into online banking.
If you submitted a PPI reclaim in the past and didn’t take it to the Ombudsman, then it’s worth restarting your complaint. More than 60% of cases escalated to the Ombudsman have been upheld in the consumer’s favour – a shockingly high figure, given that these are complaints that the banks have already turned down!
If you have tried to reclaim within the last six months, and your bank rejected your case, you can go straight to the Ombudsman (see below). But, if you complained more than six months ago, you need to restart your reclaim.
It’s simple to do – just use the FOS online form or the MSE template letters to submit your complaint to your bank.
Remember to put in details of your last complaint, including any reference numbers if you have them. Explain that you’re unhappy with the bank’s decision, and ask it to look again at your case. Don’t forget to add that you plan to take your complaint to the Ombudsman if it’s rejected again.
If you still haven’t reached a satisfactory conclusion, it’s time to make a formal complaint to the Financial Ombudsman Service. It’s important to understand that if your bank didn’t help…
The FOS will decide whether your policy was sold unfairly or unreasonably. It can only do so once eight weeks have passed from the date of your first complaint letter unless your bank sends a final letter within the eight week period.
While the process of using the Ombudsman is simple, and the amount of money you could receive is massive, it’s not usually quick.
Just contact the Ombudsman and ask it to take on your case. You can either do this via the Financial Ombudsman Service website or by calling them. The FOS will look at each case individually, so if yours is a matter of you saying one thing happened but the company disagrees, the Ombudsman will decide if it thinks the company acted fairly.
As the party with the responsibility to provide full details of the insurance, the lender is expected to have more proof than what happened to back up its case.
In the last few years, around 60% cases that were handled by Ombudsman were awarded in consumers’ favour. And even if yours isn’t, there is no penalty for losing. It just means you don’t get the money back.
‘How to do it: complete a simple questionnaire’
You will be required to fill in and sign a copy of the Financial Ombudsman Services’ questionnaire. Include copies of any paperwork that backs up your case, and send the form by recorded delivery to your lender (keep a copy yourself).
The most important thing to understand is: don’t be put off if you’re rejected. You may also need to go to the Ombudsman later, but you need to have written to the lender first.
The Ombudsman will then send you a confirmation letter to say it’ll look into your case and get back to you if it needs any more information.
Sometimes this will take a long time, maybe even a couple of years as the Ombudsman deals with huge numbers of complaints. But don’t worry as you can leave the matter to the Ombudsman to resolve and it will contact you with any offers from your card company.
The Ombudsman can only help with complaints about regulated companies. All PPI sales from January 2005 are regulated by the FOS, but some earlier policies aren’t. Any provider that was regulated before this will be covered by the Ombudsman so all banks and building society credit cards should be fine.
Sadly, if you got PPI in 2004 or earlier and the provider wasn’t FSA/FCA-regulated the Ombudsman has no jurisdiction. This makes reclaiming complicated, though it’s still worth trying. Always call the Ombudsman and check first.
The Ombudsman’s decision is usually made by an assigned adjudicator, but if you disagree with the result, you can ask for a formal decision to be made by one of the official ombudsmen at the service. This usually takes several months as it involves a detailed investigation into your case, but don’t be afraid to push your complaint further if you think the initial decision isn’t right.
After that, while the finance company must accept the Ombudsman’s decision, you still have the right to take the company to court – see the ‘Use a claims management company’ the section below – if you don’t agree with the result.
It’s also worth noting that if you feel the FOS hasn’t handled your case correctly, for example, there have been unnecessary delays, you can ask for a senior manager to review it. If that doesn’t resolve things you’ve a right to go to the Independent Assessor, though this is only about quality of service, not the actual decision made.
An alternative is to find a local lawyer willing to take the case on, or a no-win no-fee legal firm (some claims handlers link with or use them).
After all, from this point on it’s likely to get litigious, so a lawyer should help. In fact, a legal letter may make a company with an insubstantial argument settle quite easily.
Yet if you are going to hire a lawyer, ensure you discuss the fees beforehand and compare it to the maximum you can reclaim.
If you’ve tried a reclaim through a trade organisation and was unsuccessful , there’s always the option of taking court action against the PPI provider through the small claims system. The complaint is generally on the grounds that it misrepresented your contract (and therefore made it invalid) if it didn’t give you the full facts about the product or asked all the required information.
This can actually be quicker than using the Ombudsman but will involve costs, eg, £50 for smaller amounts, up to £300 for larger reclaims. Although you will get these back if you win and there’s always the risk you’ll have to argue it in court.
If you have good grounds and understand the legal arguments, then do consider taking your claim to the court. There’s a good chance it will force the PPI Company to settle, but there are no guarantees.
Claims management companies such as ISmart includes advice and services to customers regarding the following claims:
Any company that offers client management services to customers are known as a claim management company. The responsibilities of a claim management company involve:
Here is why lodging a complaint via a claim management company can be so effective:-
Some of the biggest PPI compensation fees recovered for customers so far have been through claim management companies. One of the biggest refunds so far paid out is over £80,000.
The PPI scandal has affected millions of people over the past 10 years but the majority of people who are entitled to compensation still do not know where to start. A claim management company takes all the hassle of finding and making a claim for compensation and ensures that you get the fair compensation for your losses.
We would advise you to use our “Free PPI” check service to find out if you have been mis-sold PPI on your credit card. If you are entitled to a claim, we can negotiate with your bank that you are entitled to get the refund. Banks can take 6-12 weeks to make a decision. If the bank has been taken over then you can still complain to the new provider. Advisably you should act as soon as possible to make your claim.
If the claim is not successful, you may wish to take matters to The Financial Ombudsman Service. In terms of PPI, if a claim has been dismissed by a bank then you have the right to take things further onto the Financial Ombudsman Service. We as an established claim firm can contact the Financial Ombudsman on behalf of you to get things sorted. Customers will receive a FOS complaint form to review and sign and once completed this can be sent off by us to the Ombudsman followed by the process to make your claim successful by us.
Hopefully, this guide was helpful in making you understand how you can go about finding whether you have been mis-sold PPI on your Barclaycard. Take the right steps as mentioned above and you will have a successful claim resulting in a fair amount of compensation for your financial loss
Mis-sold PPI Compensation claims MUST be made by June 2019 under proposals announced by the Financial Conduct Authority (FCA). It is important to understand that in some cases, you may have less time than this