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Can someone help with First Plus. I am being offered (as of this morning) £2,106 from a possible £19,930 PPI. This will not come to me it will be offset on the loan which was £100,000 and if I close the loan early they will charge £764.00 interest + £150.00 admin fee. To put their calculations in to perspective:
£100,000 original loan in June 2005
£19,930 PPI payment added to loan £119,930 TOTAL
They say there is £115,373 outstanding
They will credit £2,106
£113,267 remaining on the loan
£764.00 + £150.00 additional charge if I then pay the loan in full
Should I be accepting this £2,106 they are offering or take things further.
Can someone help with First Plus. I am being offered (as of this morning) £2,106 from a possible £19,930 PPI. This will not come to me it will be offset on the loan which was £100,000 and if I close the loan early they will charge £764.00 interest + £150.00 admin fee. To put their calculations in to perspective:
£100,000 original loan in June 2005
£19,930 PPI payment added to loan £119,930 TOTAL
They say there is £115,373 outstanding
They will credit £2,106
£113,267 remaining on the loan
£764.00 + £150.00 additional charge if I then pay the loan in full
Should I be accepting this £2,106 they are offering or take things further.
Hello Sooze,
Personally I would not accept this token off from them in any shape or form. If the ppi was mis-sold, I would be wanting the full ppi premium, the interest they applied to it. This is hidden in the total interest that they applied to the Total charge for credit. What was the total amount payable by you and the lenght of term and interest rate applied to the loan.
We are taking about a hell of a lot of money here so I would think very carefully about accepting this amount, when you may be able to reclaim back the full premium of £19,930, plus the interest they charged you on top. Once you get this total figure, you then apply contractual interest on top from the date the loan was taken to the date they pay it up.
This is just an example of contractual interest you would ask for
on the premium alone (exluding the amount of interest they applied)
loan taken out 30/06/2005
ppi premium £19,930.00 Contractual interest at 8% is £3,712.99 so you would be asking for £23,642.99
another example
premium £19.930.00 Contractual interest at 14.9% is £6,915.44 so you would be asking for £26,845.44
I hope you understand the angle I am coming from and they want to offer £2,106.00 and keep the rest. MMmmmh!!!!!!!
If you need help and support just ask.
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
Many thanks indeed for replying to my first ever post. I am so glad these forums exist because most of the time you just feel 'alone' on these matters.
I now agree it would be stupid to accept their rather small offer! I was sold the policy with this additional figure because I was told I would receive the £19,930 back in full at the 5 year point either by cheque or could offset it against the loan. I was pretty desperate for the loan and agreed to it, who wouldn't it seemed an attractive offer. I would have to wait a further 2.5 years for it to pay out. In the mean time I have put my property on the market because I just want to get out of debt. I think the only part of mis-selling the policy is that I was 'not' told I could go elsewhere and get my own PPI policy to cover the loan, which one would assume would have been cheaper.
Do you know of anyone else that has challenged First Plus? I think I am worried that it's such a large sum to reclaim (I have successfully reclaimed all my bank charges from First Direct with one letter) that they might insist that I clear the loan immediately which is secured against my property. This is the first I have heard about PPI and the mis-selling of so am naturally cautious.
Having thought about it there is another issue with this loan in that I was never told that if I wanted to clear the loan anytime before the 5 year period was up that they would then add the PPI premium to it.
£100,00 original loan
£19,930 PPI which I clearly did not need but it was encouraged as a bonus
£119,930 Total amount of loan (7.7% variable)
£115,393 outstanding balance if I paid the loan in full (today), why have I got to pay the additional £15,393? This was something they never mentioned when I took out the loan!!
Looks like I have my 'knickers in a twist here'. Having now read the T&C's the additional £15,393 would be interest because I am paying the loan back early (when my property sells). I still don't think I ever needed the cover though?
Having thought about it there is another issue with this loan in that I was never told that if I wanted to clear the loan anytime before the 5 year period was up that they would then add the PPI premium to it.
£100,00 original loan
£19,930 PPI which I clearly did not need but it was encouraged as a bonus
£119,930 Total amount of loan (7.7% variable)
What was the total amount payable? Did they not charge you any interest of the loan?????
How much were the payments every month and how long was the loan to run for.
£115,393 outstanding balance if I paid the loan in full (today), why have I got to pay the additional £15,393? This was something they never mentioned when I took out the loan!!
The Breakdown you have given on the loan do not sound correct.
It is normally like this/
Amount of loan 100,000
ppi premium 19,930
total credit 119,930
interest at ?? ?????????
Total charge to credit ???????????
£????monthly over ????months/years
Interest at
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
The amount of interest and total amount repayable will not be shown because you have a variable interest rate.
I would imagine that the interest is added monthly (like a mortgage), but the total amount payable is not known due to possible future fluctuations in the interest rate.
These are all the figures that are on the agreement:
Cash Loan £100,000
PPP Loan £19,930
Total £119,930
Monthly repayments on Cash Loan £737.43x 300mths = £221,229.00
Monthly repayments on PPP loan £146.97 x 300mths= £44,091.00 This is the one you go for
Total Monthly payment £884.40 If you multipy the £884.40 x 300months the minimium total charge for credit is £265,320.00 so they applied £145,390.00 in interest(now 998.00)you will be paying more interest now because the interest rate is variable.
Over 300 months (25 yrs)
Variable interest 7.7%
That's it there are no other figures on the Loan Agreement.
Once again I REALLY appreciate your help and advice on this matter.
Kind regards,
Sooze
Hello Sooze,
I have done a few simple calculations to give you a rough idea of how much interest they have applied to this loan.:o I have worked on the basis of the PPI payment times 300months So the figure in red above is approximately what you would be entitled to reclaim back. The interest rate is variable and can go down as well as up. It would be diffuclt to work out exactly how much of that varied interest applied to the ppi. I am not that clever to do this
Monthly repayments on PPP loan £146.97 x 300mths= £44,091.00 This is the one you go for
I now need to work out how much contractual interest on top of that you could ask for, so will get back to you on this.
Keep smiling we will get there
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
I need the exact date that the loan was taken out pleas
I have worked out the contractual interest as an example from the 30/6/2005 at 7.7%.
PPI premium and interest charged £44,091.00
contactual interest at 7.7% 8,223.88
So your top line is £52,314.88 to ask for back with contractual interest.
Your bottom line is £44,091.00 without contractual interest.
You call, not theirs
I do think they will choke when you tell them that you have done a bit of investigation regarding the loan and ppi.
Pick your jaw off the floor now and get back to me with the actual date of the loan.
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
I dunno about about jaw on the floor my whole body went.....:o
These are enormous figures and my signature on the loan was dated 5th June 2005. I think something of this enormity will end up surely with the fos and would not qualify for the small claims court because I think their threshold is £5,000.
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Whoaa - hang on a minute. You will be paying this interest monthly - added to the loan, and will therefore have only so far have paid interest for the time you have had the loan for. If you get the PPI refunded this will be deducted from the balance of the loan and will therefore no longer attract interest.
I wouldn't go chasing for money you haven't yet paid - you would more than likely be laughed out of court.
I dunno about about jaw on the floor my whole body went.....:o
These are enormous figures and my signature on the loan was dated 5th June 2005. I think something of this enormity will end up surely with the fos and would not qualify for the small claims court because I think their threshold is £5,000.
Kind regards,
Sooze
Hello Sooze,
Without going back to look at your thread, where are you now in the process of reclaiming it back, I know they have made a pittence of a gesture.
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
I have only made a phone call to them Saturday morning and they offered me £2,106 to be deducted from the loan. If I then paid the loan in full they will charge me £764 early settlement interest and £150 for something else, admin charge.
I have been researching as many articles as possible over the weekend. I did a 'google' search for "First Plus PPI mis-selling" and it came up with a number of articles in the press and on this forum which I am wading through.
Whoaa - hang on a minute. You will be paying this interest monthly - added to the loan, and will therefore have only so far have paid interest for the time you have had the loan for. If you get the PPI refunded this will be deducted from the balance of the loan and will therefore no longer attract interest.
I wouldn't go chasing for money you haven't yet paid - you would more than likely be laughed out of court.
Hello RR,
Thanks for your comments, at this present time we are just trying to work out the figures and start talks for negotiations to a refund on this mis-selling. I am sure that any premium and interest that has not been as you state "paid for" with be used to reduce the balance of the loan. Any premium and interest paid for would be entitled to be reclaimed back to the customer, plus contractual interest to date. I am sure that the actual claim that is put to the creditors, will be substantially higher that what they are actually offering.
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
I have put a letter together for First Plus and will send it off tomorrow. I have not put any figures in it so lets see what they offer, if anything. I would love it to be anything near the figures you have worked out, instead of the verbal £2,106 so far.
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Originally Posted by Sooze
