Thread: First Plus/Norton Finance PPI - confused -help needed please

Dear all,

Having received my SAR documentation from First Plus I feel that we have a case for misselling but desperately need advice. This posting is going to be somewhat lengthy as I am totally confused (exasperated by dyslexia and dyscalcula) with regard to how much we should be claiming back.

After being referred by Norton Finace to First Plus in November 2004 we took out a loan for £50,000 and from the paperwork it seems we clearly opted for PPI of £12,245.00 making a total of £62245.00. Neither my husband or I remember having any specific conversations with First Plus or Norton Finance regarding PPI. We have credit agreement where the box has been pre-ticked saying 'you have opted for the PPI. The agreement was for £458.04 over 300 months at 7.7% APR. The credit agreement doesn't give a break down as to what percentage of the repayment is for the loan.
The tape recording provided as part of the SAR doesn't contain any information regarding the original loan application - the first recordings are for the security telephone calls from FP prior to them paying out the loan - this does include them giving us information abou the PPI but not how much it costs or that we could get cover elsewhere. My husband was told that the insurance booklet sent would explain details of 'what you are and what you are not covered for' but other than that there was no further information given.

In April 2006 following a 'marketing letter solicitoring you for a further advance'(their words during telephone conversation) with the carrott of better interest rate we foolishly took out a further advance of £5,000 as we were told it would only be possible if we took out a minimum further advance. When I questioned whether we needed to take out PPI again we were told that if we took out PPI again our redemption figure would be only be £52,232 and if we didn't take PPI we would get a redemption figure of £60,000 - £8,000 difference - can anyone explain why?

Anyway naievely enough we took PPI again. The loan this time being £71,581.75 (£57,500 loan and £14,081.75 PPI). The repayments at that time were £424.02 for the loan and £103.85 for the PPI - 300 months initial interest at 7.7% - they could only match the APR not better it!

We have continued to pay, at various interest rates, to date. I haven't cancelled the PPI yet as I am somewhat confused that if we don't win any case we would then loose out on the 5 year lump sum - don'w want to burnall our bridges.

Stupidly, for both loans, we believed that as we could claim back the insurance premium after 5 years that we only paid the extra premium for that period. I even have a PPI document that states:

PPI Start date 10/04/06 - Term of Loan - 60 months.

I feel strongly that we have a case for misselling but really don't know where to start with the calculations - do I need to take out a SAR with Norton Finance as well as First Plus.

Becuase of my 'disability' I am considering going to one of the specialist companies that deal with sort of thing but before then any help would be greatfully recieved.

Many thanks

Karen

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Hello Karen

What a rotten shower they are ... I'm seething on your behalf .

Anyway, assuming that the PPI was added to the loan as a Single Premium, you might like to take a look at Bog's interest calculator as a starting point:
Download PPI Calculator HERE (Single Premium PPI)

Reading what you have written about the original loan, and the limited information provided in the taped conversations from First Plus, it would seem as if they have something to hide, i.e., that you were not offered all the information required to help you make an informed choice as to whether the PPI suited you and what your options were. The FSA regulates such 'conversations' and guidelines exist, however, they don't seem to be followed in my experience.

It would also be useful if you had the terms and conditions for the PPI part of the loan; these should have been included in the SAR information provided. These should include exclusion clauses for claiming.

For the top-up loan, the higher redemption figure excluding PPI just doesn't make sense!!

You could send another letter giving First Plus the opportunity to provide the missing tape info and your T&C's for the PPI. Then, if you were to start a claim against them (via the fos) you can demonstrate that you have given First Plus every opportunity to provide all the relevant info and to demonstrate that they have done everything right ...


... I don't think they have and that you have a very clear case of mis-selling.

I'm at work at the moment, but when I get home tonight I'll dig out some more stuff for you on the FSA's guidelines for selling PPI and post it up.


Hope this helps as a starting point

Thanks for the reply - have tried working out the figures with the spreadsheet but either I am being very thick or it doesn't work completely with my system. If anyone can help with working out the figures I would be eternally grateful and will then embark on what would appear to be a very long road on addressing the situation with First Plus.

One further question - as Norton Finance were the company who initially referred us to FP do I need to do a SAR with them too - there is nothing on the SAR tapes from FP to indicate that our custome was referred to them by Norton Finance - and indeed no mention of our initial application on tape or in writing.

Many thanks

Karen

Sounds like a very good case to me too.

All the best, and go get your money back hunni.

Help is always on hand here with these amazing helpful lot.

Di.
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