Go back

Barclays PPI and financial mis-selling

Go back

19/10/2018

Barclays Bank has recently been in the headlines following claims of financial mis-selling. The Barclays PPI scandal is still on the mind of many as these practices came to light.

Mis-selling Loans

In October 2018, Barclays revealed an internal report advising that the consumer lending arm of the bank, Barclays Partner Finance may have failed to protect customers from misleading and aggressive sales tactics from salesmen. As a result, they failed to stop customers being pressured into taking out unaffordable loans.

The credit agreements were used by many customers to buy furniture, cars and fund home improvements. Barclays have now confirmed they will review these policies, which potentially number in the thousands, and compensate any victims of mis-selling.

The Financial Conduct Authority (FCA) has ordered Barclays to overhaul its loan practices in light of these concerns.

This new mis-selling scandal suggested Barclays hasn’t learnt any lessons from the mis-sale of PPI.

The Mis-sale of Barclays PPI

The chairman of Barclays bank, John McFarlane was recently in the news stating “the Barclays PPI scandal has turned Britons into ‘fraudsters’ and weakened banks. The percentage of fraudulent claims is enormous. We have turned portions of Britain into fraudsters and the Government had been complicit.”

Barclays has admitted telling customers they did not hold PPI policies when in fact they did.

The bank has provided an online PPI checking tool since 2012. However, it has identified problems with claims submitted by claims management companies, as these requests were not always checked against some of the records held.

Barclays have not confirmed exactly how many customers this issue could have affected. They have only stated it is “less than 1.1% of cases where the claim was made via a claims management company may have been told incorrectly” there was no PPI taken out. However in light of the scale of the PPI mis-selling scandal, thousands of Barclays customers could be affected.

Barclays PPI claims

If you believe you took out a loan or credit agreement with Barclay, and PPI was added to your loan, it is likely the lender received additional undisclosed commission as it was common practice. You may be eligible to claim a refund of the commission.

This is because undisclosed commission amounts to an unfair financial relationship. You can learn more about Plevin claims here.

Get in touch with our team of financial mis-selling experts. We will take some details of your credit agreement. Then we can start investigating on your behalf.