Thread: *Advice Needed* FIRSTPLUS Secured Loan Early Settlement Charges

Hi All,

This is my first post, so thought I'd say a hello and big thank you to everyone that contributes to the site.

Today I've been reading through posts from people who are trying to contest ERC's, as I've just sold my house and so cleared by FirstPlus loan which was secured against it. Now I knew that settling this loan always going to be a difficult pill to swallow - handing over all that money, but I took out the loan when I was desperate.

Anyway, I'm now wondering whether there is any case to be brought to claim that their fees are exorbitant???

The details of my loan are as follows:

Loan Amount - £30,000
Term - 25 years / 300 months
APR - 8.9%
PPI - None
Monthly Payment - £243.00
Total Monthly Payments Made - £5,346
Estimated interest Accrued - £4,895 (this is my guess-timate)
Start Date - 01/02/2005
Account Settled - 17/11/2006
Settlement Amount - £30,433.23

As set out in their settlement letter:
Total amount payable under the Agreement £48373.48
Less our rebate on early settlement -£18090.25
Plus administration charge £150
Total amount payable by you to settle £30433.23

So, does anyone have any thoughts or wisdom they can offer me? Am I just stupid for having taken out that loan, or can I recoup any of my losses? Have they been unfair...?

Any advice gratefully received!

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Hi and welcome

I am not sure on this one but I'll point it the direction of someone who will most likely know.

Hi,

Thanks for your reply. Does anyone else have any thought's on this scenario?

Cheers,

Emma

Hi Emma,

You can claim the admin charge.

Do you know how they calculated the rebate?

Hi Zootscoot,

I don't know the Breakdown yet. I've sent them my new address details and included a request for a breakdown, keeping the request very simple and sweet at the moment - maybe they will not know what I want it for yet and perhaps give it to me. However, I am poised to write the next request far more sternly. I was reading through their loan literature and it included a table showing the early repayment calculations; I'm sure it was about £1k per month for a loan of my size and repayment this early. That is sickening, however until I know what this is for I cannot know whether it is reasonable.

I will check this table again, wait for their reply and come back to you. Thanks...

Emma

As Am/Would I!