Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
The book is easy to understand and clearly explains the rights
a bailiff has, and also what they cannot do when collecting debts and repossessing goods etc.
I am looking to reclaim mis-sold insurance off First Plus.
I took out a loan in May of 2004 to consolidate a number of credit cards and when I took out the loan I was told that my chances of being accepted would be improved if I accepted the insurance. I was never asked if I had any other insurance policies etc.
The loan has since been paid off as I sold my property in Jan 2006 and moved in with my girlfriend. What I am not sure of is how I work out how much I can claim back off them.
Below are all of the figures relating to my loan:
Initial loan: £25,000
Insurance: £4982.50
Total Loan: £29,982.50 interest as per the agreement 9.9%
Total Re-payment before settlement: £ 8254.82
Settlement paid in Jan 07 £31,490.89
So in total I have paid a small fortune and ended up still owing more than I borrowed at the point of settlement.
How much can I reasonably ask them for in terms of mis-sold insurance and how do I work out the interest I can add to the figure?
I am looking to reclaim mis-sold insurance off First Plus.
I took out a loan in May of 2004 to consolidate a number of credit cards and when I took out the loan I was told that my chances of being accepted would be improved if I accepted the insurance. I was never asked if I had any other insurance policies etc.
The loan has since been paid off as I sold my property in Jan 2006 and moved in with my girlfriend. What I am not sure of is how I work out how much I can claim back off them.
Below are all of the figures relating to my loan:
Initial loan: £25,000
Insurance: £4982.50
Total Loan: £29,982.50 interest as per the agreement 9.9%
Total Re-payment before settlement: £ 8254.82
Settlement paid in Jan 07 £31,490.89
So in total I have paid a small fortune and ended up still owing more than I borrowed at the point of settlement.
How much can I reasonably ask them for in terms of mis-sold insurance and how do I work out the interest I can add to the figure?
Any help is greatly appreciated.
Cheers
NW_Red
Hello Nw Red,
What was your monthly payment and how long was the loan to run for, They would have charged you interest of the loan and PPI amounts
They would have also given you a rebate of ppi and ppi insurance when you settled the loan. So you need a Breakdown of the settlement figures
Your best bet would be to send the company a full S.A.R - (Subject access request), you will find the template letter in the stickies on the ppi forum:grin:
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
What was your monthly payment and how long was the loan to run for, They would have charged you interest of the loan and PPI amounts
They would have also given you a rebate of ppi and ppi insurance when you settled the loan. So you need a Breakdown of the settlement figures
Your best bet would be to send the company a full S.A.R - (Subject access request), you will find the template letter in the stickies on the ppi forum:grin:
Hi Hellhasnofury,
Thanks for your prompt response.
I have already sent my S.A.R letter. Unfortunatly the documents are in the UK and I am in Germany with work.
What I can remember in relation to your questions are:
The loan was due to run for 25 years or 300 months.
The monthly payments were:
Initial payment of £317.01 in June 2004
18 payments of 272.87 monthly between July 04 and Dec 05
There was then a 2 month payment break after which I made 9 payment of 272.87 between March 06 and November 06
The payment then increased to £285.16 for the final 2 payment in Dec 06 & Jan 07.
The Jan 07 payment was the last payment as the loan was settled after this.
As for the settlement figures I do not believe that I was given a breakdown of the settlement figure. I will have to double check the paper work, when I am back in the Uk on Friday. The only figure I can remeber is the one total settlement of £31,490.89
It does seem as if you are more likely to get your PPI back if your loan is still 'live' (I may be wrong), but I am only basing this on the fact that I did not receive any hassle at all from the time I made the complaint of mis-selling, to them acknowledging and accepting htat I was mis-sold. All in all it took less than 3 months. I am right now on hold on the phone to their 'Complaints Executive' to advise I am not prepared to wait indefinitely to get my money back as it is better in my bank account as opposed to theirs.
RIght I have finally found the time to talk to FirstPlus and I am even more confused now.
They have told me that when I took out the loan all of the insurance was added to the loan so I asked to borrow 25,000 but with the mis-sold insurance the total I borrowed was 29,982.50 (4982.50 insurance)
When I settled the account they refunded me £167.83 so the total I have paid for the insurance was 4,814.67
They could not tell me how much I paid each month towards the inurance as it was all combined but they could tell me that of the 285.16 a month I was paying at the end of the agreement £260 went to intrest on the loan. The intrest rate for the loan was 10.9%
So how can I work out how much I can try to claim back? Should I just try and claim the £4814.67 that I paid in insurance and ignore the intrest?
I found the monthly interest figure on my credit agreement.
I used the APR from when the loan was set up, like you it has gone up and down in the last few months, but applying that variance to the calculations would have over complicated things.
Thanks for your help and quick replies, I have entered the figures in to the spreadsheet and I come back with a huge figure which I am sure can't be right........
Can you have a look for me and tell me if there is something I have missed. The loan was over 25 years but I only had it for just over 2 and a half years before I settled. This figure would appear to be large given that timescale.
FirstPlus Financial Group PLC
The Avenue Business Park
Pentwyn
Cardiff
CF23 8FF
Dear Sir or Madam,
Re: Account number: *******, Account Name Mr NW_RED
I purchased the above policy from you in 12th May 2004 but now believe that I was mis-sold this policy for the following reasons:
§This is due to the fact that your member of staff did not ask me about any previous medical conditions when the policy was sold.
§This is due to the fact that I paid a single premium for my policy but did not see it through to the end of its initial term after paying back my loan earlier than planned on the 24th January 2007.
§This is due to the fact that I was not given the correct information when the policy was sold to me, as
-Your salesperson was very pushy in selling me the policy so that I felt I could not say no.
-Your salesperson did not tell me that the policy was optional and I have since realised that I had alternative insurance cover.
-Your salesperson stated / implied that taking out the policy was essential for me to get the associated credit
-Your salesperson did not give me full information on what the policy would and would not cover for example that the loan only covered the first five years of my loan term.
-i am concerned the sales assistant that sold me the policy has no financial background and the policy was not sold in my best interests.
-Your sales person did not tell me that the loan would be added to the value of my loan and interest accrued accordingly, in fact your sales person told me that my loan would be invested on my behalf.
Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.
I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.
Right, it has been a while since I last posted, mainly due to FirstPlus taking a long time to get back to me.
I complained about my insurance being mis sold on the following basis:
-Your salesperson was very pushy in selling me the policy so that I felt I could not say no.
-Your salesperson did not tell me that the policy was optional and I have since realised that I had alternative insurance cover.
-Your salesperson stated / implied that taking out the policy was essential for me to get the associated credit
-Your salesperson did not give me full information on what the policy would and would not cover for example that the loan only covered the first five years of my loan term.
-I am concerned the sales assistant that sold me the policy has no financial background and the policy was not sold in my best interests.
-Your sales person did not tell me that the loan would be added to the value of my loan and interest accrued accordingly, in fact your sales person told me that my loan would be invested on my behalf.
The key point in my complaint is the last one, in as much as I actually have a recording of the sales conversation (Thanks FirstPlus) where their agent tells me that the £5000 Insurance premium will be invested for me. I can not see how adding £5000 to a loan that I then have to pay back on a monthly basis can ever be classed as investment. To my mind this is mis-selling?
First question: Am I right to assume that this is blatant mis-selling and I can complain to the fos on this basis?
The rest of the points have been covered by what I assume is a standard response letter telling me that the policy was explained in the welcome booklet, credit agreement and the insurance can been seen being added to the total value of the loan. They also claim that the sales person was not pushy.
Interestingly they did respond on the point about the sales person asking me if I have alternative cover.
Second question: Can I push ahead with a complaint on the basis of insurance being invested and the sales person not asking if I had alternative cover?
NW_Red v FirstPlus
insurance off First Plus.
Reply With Quote
Originally Posted by NW_RED
