Thread: FIRSTPLUS - PPI Repayment Calculations (after PPI 5 year rebate)

Hell brand,

Originally Posted by brand_no_7

Has anyone been successful in recovering the PPI payments (in line with the fos recommendations) from Firstplus after they have received the cashback after 5 years.

If so can you contact me because a call to Firstplus has left me very confused because apparantly because of the cashback my balance will stay the same and my monthly payments increased!

FOS upheld my complaint and now waiting for FP to come back to me with calculations but I am not that confident they will treat me fairly.

Here are all the relevant figures

Original amount advanced - £55,000
PPI amount - £13,469.50
Term of loan - 300 months
first payment - September 2003

Original repayment - £642.96

Original APR - 12/2%
Original MIR - 0.967%

Monthly payments did increase to £665.33 (04/04), £677.55 (06/04), £702.27(07/04)

Things get a bit complicated because in December 2005 made partial payment of £40,140.44

Over same term monthly payments reduced to £320
rised to £351.52 (08/07). Current interest rate is 13.2%

In August 05 i had the refund of the PPI policy of £13,469.50

Many Thanks

You may have received a refund after 5 years for not submitting a claim

but you must check out the fact that your PPI policy would probably only cover you for the first 5 years of the Loan period ie 60 months as your term is 300 months my guess is you will still be paying the interest on the original PPI loan figure of £13,469.50 for the next 240 months and if you check up you will probably find you are no longer covered by the PPI should you require to make a claim.

I would write to ask for clarification on this point and if you get any hassle submit a Subject access request the fee is £10.00 then when you have all the data on the loan you may wish to cancel it find a cheaper alternative and claim your PPI premiums back including the contractual interest and the 8% statutory interest on top.

Have a read through the stickies at the top of the forum to get the info and away you go

aa

Originally Posted by brand_no_7

Thanks for your response

Sorry if i didn't make it clear but I have been successful with my claim and fos upheld my complaint. Firstplus will now be paying me the PPI premiums, contractual interest and stat interest.

The reason for my post is that when i spoke to FP on an admin matter I enquired about when they will come back to me - it was during this conversation where they said that due to the rebate of the PPI premium i got back in 2005 this will mean my monthly payments is likely to go up.

On the basis the FOS clearly state the customer must be put in the position they would have been if the ppi was not taken out then this surely cannot be right and was just enquiring whether anyone has dealt with a similiar issue.

Many Thanks

All I can do is give you my scenario.

Cancelled PPI as it was no use. Employer covered me fully and better than PPI through RBS.

RBS stated the reduction in monthly payments would not reflect the full amount of the PPI monthly payment.

Complained to the FOS, they upheld my two complaints and all of a sudden I get a refund of the PPI premiums paid plus the interest plus 8% statutory interest and yes my monthly payments reduced even more down to the level of repayments on the loan amount as originally described in the CCA. Because of this I also got a refund of the difference between the loan agreement payments and the additional element of PPI that I was told I still had to pay..

So make sure you are covered more cheaply, cancel the PPI and at the end you should only be paying monthly payments on the loan amount with no additional element for PPI. ( yet another [problem] to cream off more money)

Hope this is clear.

aa