FIRST PLUS

**Berry57** · 3rd December 2007 22:21

Hi

Newbie poster getting on top of debt here, seeking advice PLEASE.

Four years ago, we were in financial trouble and so my husband and i took out a 15 year loan with First Plus for 55,000k. Added to this was a single premium PPI icon

for £13,469k which only covered us for 5 years. The interest icon

rate was 8.4% initially but this has fluctuated marginally. We sold our house earlier this year and settled the debt in full for a massive £62,000k We believe we were missold the PPI so are trying to claim money back on it. On receipt of our second letter to them, First Plus came back with an offer of £2030 as a "gesture of goodwill icon

". We know this is no where near enough but would really welcome some advice on what we should be asking for. Many thanks in anticipation

**alanfromderby** · 4th December 2007 00:52

Didn't see your post as you put it on the end of another thread. I have now moved it so hopefully you will get the advice you need.

If it was missold icon

then you are entitled to seek the full amount, plus 8% interest icon

for the period that they deprived you of it.

Why do you consider it was missold?
Does the £13.5k include interest?

You could be looking at another £4k+ on top for the 8% interest over four years - so, if your figures are correct, their offer of £2030 is a bit sick.

**Odie** · 4th December 2007 01:44

I think the fact that they even made you an offer so quickly is a good sign. I would reject the offer (or accept as part payment) and continue the process to reclaim the lot!

**Goldlady** · 4th December 2007 01:45

I am in the process of claiming back PPI icon

for a friend in exactly same situation as you.

Have a read of this thread
http://www.consumeractiongroup.co.uk...an-issues.html

**Berry57** · 4th December 2007 22:58

Thank you very much for your prompt replies. We believe it was mis-sold icon

as we didn't realise what we had actually signed up to; First Plus implied we had to take it out to get the loan and we didn't realise it was only for 5 years. We are both in employment that offers good sickness and redundancy icon

terms so we would never have agreed to it if we had been fully aware. In reply to Alan's question, the 13.5K doesn't include interest icon

.

**alanfromderby** · 4th December 2007 23:04

Did the agreement list a Breakdown icon

of the figures between the loan, the loan interest icon

, the PPI

and the PPI interest. If so what are the totals.

If you can show that the cover you had through your employment was sufficient, then you have a clear case for misselling.

**Goldlady** · 5th December 2007 00:18

On my friend's firstplus loan the PPI icon

was added to the loan balance at inception so the interest icon

on it is same rate as the loan itself. MEGA bucks!

**Berry57** · 5th December 2007 09:49

Thank you for all your comments once again. It is good to know we are not alone. (I feel so embarrassed we ever got into this mess but at least we are on the way out now, having faced up to it, downsized and paid our biggest debts off.....).

The only Breakdown icon

is between the loan amount of £55K and the PPI icon

of £13.4k.
The PPI was then added to the loan to form a total of approx £68.4k. The interest icon

was calculated on a daily basis on the balance of the total loan and added to the total on a monthly basis in arrears. The APR was 8.4%. We paid 4 years of monthly repayments with no defaults before settling in full.

**alanfromderby** · 5th December 2007 10:46

Okay, this sounds like a flexi-loan - did they give you a cheque book or card with it so you could borrow up to a set limit if you so wished?

In which case, you would be claiming the £13.4k, plus the proportion of each monthly interest icon

payment relating to the PPI icon

, and add to that a proportion of the final pay-off figure. I calculate the proportion to be about 19.67% (13469/68469)

Use the bank charge spreadsheets and put the £13.4k in at the day the loan started. Then input each proportioned monthly payment, and then the same proportion of the final payment on the last date. That will give you the total 8% interest to add to the claim to today.

If you have not got the statements then you will need to do a DSAR to get the information - there is also information on that in the Bank Template Library.

**Berry57** · 5th December 2007 18:58

Hi Alan

It wasn't a flexi loan. It was just a straight repayment with the PPI icon

added to the total. The monthly repayment stayed the same every month and only changed when the interest icon

rate changed. Our approximate payment was £690 per month

B

**alanfromderby** · 5th December 2007 19:04

Ahh.....right, so variable rate. The calculations above should still cover it then.

**Berry57** · 14th December 2007 17:28

Hi

I sent a further letter to First Plus saying we wanted the cost of the policy and the interest icon

for years and basically they have sent the same letter and offer back. Any further advice please

**alanfromderby** · 14th December 2007 17:43

It's your call - if it were me I would be sending them a 14 day letter before action icon

.

**Berry57** · 14th December 2007 17:50

Hi
What is a 14 day letter?

**alanfromderby** · 14th December 2007 18:55

A letter before action icon

, giving them 14 days to refund - otherwise you will take court action.

Of course, if you are intending to go through the fos icon

route, you will need to send a formal complaint, which they then have eight weeks to deal with.

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