moo7777 vs first plus

[moo7777]

Hi all - a bit of history - I took out a loan with first plus in around April 2006 - with a lump sum insurance amount of around £4000. in October 2006 I refinanced that loan (a 'top-up') for £45000, with a lump sum insurance of around £9000 - when they refinanced, the original £4000 was swallowed up in the new deal - no rebate or anything.

I want to know if I can cancel the new PPI (£9000) and get a rebate, and at the same time get some sort of rebate on the original £4000.

The second policy I get back the premium if I don't claim in 5 years, however I don't know whether I need it as I have a very good insurance scheme at work. I also can't remember the exact conversation with the salesman, so don't know whether I was 'mis-sold ' the policy.

I may also want to re-finance the loan again and don't want another lump sum insurance amount to get swallowed up in the deal. The amount I need to pay off the loan is £55 000!!!!!

Any help would be greatly appreciated.

I will go away and try and get exact figures/dates.

Moo7777

[moo7777]

I should have said thaT I have trawled through the columns here and my main point is:

1 should I cancel the PPI and try and get a refund?
2 should I refinance and then claim back afterwards
3 should I try and go along the 'I was mis-sold' the policy route?

Thanks

Moo7777

[alanfromderby]

If you had a good enough scheme through work at the time of the first loan you have a case for misselling on both PPI's.

You would need to find out what settlement figure, if any, they applied to the first PPI - indeed I would have thought it should have been included on the paperwork.

At the end of the day, it is up to you which option you take, so long as you get back what you should not have had to pay.

[moo7777]

Hi Alan - thx for this - will need to locate all paperwork now.........do you think it will make a difference to the claim if I settle the 2nd first plus loan before reaching a settlement, or will it make no differece either way if the loan is still active or paid off...........

I am employed with a good deal on sick pay (full pay for at least a year) and also run a business with my wife (so self-employed as well) so need to look into that aspect of it. as to whether it was mis sold ir not. It may be that it was mis-sold to the extent that I only needed insurance to cover my self-employed work, not employed, so only needed half the amount of cover.

Either way, the PPI will have lasted 6 months on the first loan and 12 months on the second so there must be some sort of refund due even if I don't go the mis-sold route.

Cheers

moo7777

[alanfromderby]

Whatever way you choose to do it should come out with the same result. They will either have to reduce the balance owed - or refund you an equivalant amount after settlement.

The only thing to remember is that you now know all the facts, and if you are not planning on settling for a few years, you have to think about the six year limitation issue.

[moo7777]

OK - here are the details:
Loan of £15000 with first plus taken out on 20 March 06. PPP loan taken with this - insurance amount - £3673.50. Total loan - £18673.50

I refinanced with 1st plus on 26 Sep 2006 loan amount £46000, PPP loan £11265,40! Part of the £46000 is paying off the previous loan/insurance. I am not sure what the figure is they charged for the 'redemption of the previous loan, so I need to find out that figure either in a phone call or by S.A.R - (Subject Access Request), if I can't get my hands on the paperwork.

Am still trying to work out if I can go the 'mis-sold' route as I can't remember what was said to me on the phone and what I said to them exactly.

If I can't do that, is it still possible to get a reasonable refund of the first loan amount, as it was refinanced after 6 months and I'm pretty sure that most of he premium was 'lost/swallowed up' in the refinancing.

Also - if I cancelled the existing policy for £11265.40, would I get a reasonable refund due to the new FSA guidelines or do I still need to go the mis-sold route?

One other point - have just found the document for when I took out insurance for my main mortgage - I may try to go the misselling route with this as well, but as a point of interest, the premium for a monthly benefit of £1315 (for 12 months) was £4471.03 taken out in july 05- semms ridulous that a mere 14 months later, the insurance amount for a £373 a month paytment was £11265, NEARLY 3 TIMES MORE!

Anyway, that's it for now - apologies for the rambling message, look forward yto any feedback

Cheers

Moo7777

[alanfromderby]

Really, until you know exactly what you want to claim it is difficult to give any advice.

I am presuming that the £18673 loan was not front loaded with interest, and presumably that it was therefore a variable rate loan. If that is correct, you would be looking to claim £3673.50, plus the proportion of your monthly interest that related to the PPI, less the amount that was refunded when the loan was closed.

On all of those sums you would be able to add 8% interest p/a from the date the amounts were applied - however, you would need to adjust that to take into account the refund.