First Plus - PPi and interest?

[Wisteria Sky]

hi, have only just joined the forum but have been reading the posts with interest over the last week or so.

My situation is that I have just put my house up for sale. I have a mortgage on the property and a secured loan with first plus. The redemption fee I have obtained from First Plus is more than the one they gave me 2 years ago !! From reading the posts here it appears that it is the R78 interest and very little rebate on cancelled ppi which are causing the problem. The higher redemption figure means i am now in negative equity on the house and am selling it to try and get my debt sorted.

What exactly is R78 calculation of interest ? my understanding is that this is no longer allowable, but my loan was taken out in 2004 when it was? can I challenge this ? and what difference would it make ?

I think I have a case for the mis selling of the ppi, as I was lead to believe it would increase my chance of getting the loan and the whole single premium thing was not explained to me or the effect of early redemption etc, not was i told I could get this elsewhere.

The loan was taken out in May 2004, and the 5 year pay out of the premiums is not long away, unfortunately I cant afford to keep paying it until then. Do I need to cancel the ppi before i can make a claim that I was mis sold ? This First plus loan replaced an earlier one - also redeemed before the ppi rebate, can i claim for this one as well ? no doubt i am still paying for that too !

What i really need to know is what order to do everything in ? Should I challenge the redemption figure in particular the r78 interest first then go for the mis selling of the PPI ? or do everything together ? Do i need to wait until I actually pay off the loan before i can do anything about the interest ? ( doing this will mean i need a loan to cover the negative equity - about £10000 based on realistic selling price of my home). If first plus change whats left of my loan after the house is sold to an unsecured one to pay for the negative equity, and ( best case) i do receive a pay out, will i then be charged early repayment int etc on the new loan and could i do anything about this too ??

Any help or comments gratefully appreciated ( i can provide accurate figures if necessary)

Wisteria x

[citizenB]

Just bumping so some one more experienced might see this for you. Have you read other posts in the PPI forums You might find some help there .

[Wisteria Sky]

Bumping back up. Can anyone help ?

ty

[Goldlady]

Hi Wisteria, got your pm. My friends claimed their PPI back whilst the loan was still active. Basically they will get the interest they have been charged on it from day one refunded to the account and their payments will be adjusted so that the bits attributed to the PPI will be credited to the account. It is suggested in the letter that my friends might actually be due a refund.

So I presume you have cancelled the PPI from now but not asked for the entire premium and interest to be refunded? I would start the reclaim for misselling without delay.

I know nothing about R78 interest I am afraid - it is the first time I have heard of it.

I claimed and got the PPI on an earlier loan and their current one by the way.

First thing to do is send a S.A.R - (Subject Access Request) with a £10 cheque. This might help with the R78 interest as well.

[hellhasnofury]

Originally Posted by Wisteria Sky

hi, have only just joined the forum but have been reading the posts with interest over the last week or so.

My situation is that I have just put my house up for sale. I have a mortgage on the property and a secured loan with first plus. The redemption fee I have obtained from First Plus is more than the one they gave me 2 years ago !! From reading the posts here it appears that it is the R78 interest and very little rebate on cancelled ppi which are causing the problem. The higher redemption figure means i am now in negative equity on the house and am selling it to try and get my debt sorted.

What exactly is R78 calculation of interest ? my understanding is that this is no longer allowable, but my loan was taken out in 2004 when it was? can I challenge this ? and what difference would it make ?

I think I have a case for the mis selling of the ppi, as I was lead to believe it would increase my chance of getting the loan and the whole single premium thing was not explained to me or the effect of early redemption etc, not was i told I could get this elsewhere.

The loan was taken out in May 2004, and the 5 year pay out of the premiums is not long away, unfortunately I cant afford to keep paying it until then. Do I need to cancel the ppi before i can make a claim that I was mis sold ? Your call reaIy although the refund may not be that much now, they will pay the remaining ppi and interest into the balance owing therefore reducing it.This First plus loan replaced an earlier one - also redeemed before the ppi rebate, can i claim for this one as well ? Absolutely no doubt i am still paying for that too !Yes

What i really need to know is what order to do everything in ? Should I challenge the redemption figure in particular the r78 interest first then go for the mis selling of the PPI ? or do everything together ? Do i need to wait until I actually pay off the loan before i can do anything about the interest ? ( doing this will mean i need a loan to cover the negative equity - about £10000 based on realistic selling price of my home). If first plus change whats left of my loan after the house is sold to an unsecured one to pay for the negative equity, and ( best case) i do receive a pay out, will i then be charged early repayment int etc on the new loan and could i do anything about this too ??

Any help or comments gratefully appreciated ( i can provide accurate figures if necessary)

Wisteria x

Hello Wis,

I must confess that I am not an expert in the R78 interest calculations, but I do know that some peeps have challanged it and been successful.

Here is a link to a thread which may or not be helpful for you

GMAC customers some info
Personally I would deal with the issues you have to start with in one letter, I have answered a few of your questions in red above

Have your sent a S.A.R - (Subject Access Request)