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    • Yes typed it, how would I input it any other way, probably timed out took over half hour. H
    • You typed it in? actually typed it all out? if so, maybe you took too long or something, like session timed out. Does the status show defence filed or no change?
    • Hi just typed all defence clicked next and it's deleted all. Any help
    • I forgot to say, there is one last possibility and that is that they will receive your letter of rejection and simply fold, accept the rejection and refund you. Don't wait too long for this. Seven days maximum – but in that seven days you could send your letter of claim anyway and when that you don't hear from them or when they start mucking around at least you are seven days closer to beginning the legal action – and they will know it (which is the important thing).
    • Okay that is excellent that you have an email between the garage and the warranty company confirming that there is a serious problem with the gearbox. That is very powerful evidence. I think the situation is this: you have sent them a letter of rejection but the reputation of big motoring world is that they won't take a lot of notice and they will try to prevaricate and maybe even blame you. Clearly you don't want the car any more and anyway it sounds as if the cost of repairs is going to be enormous. You don't know if the warranty company is going to step up to the mark but the whole thing is going to take a long time and I understand that you have lost confidence in big motoring world because of this event and also their reputation which you are now discovering on Facebook and on this forum and no doubt elsewhere. On the basis that you don't want the car any more and you want your money back, you need to hurry things along. I think the first thing is that you need to decide if you are prepared to bring a claim in the County Court. Even without the warranty money, the claim is worth more than £10,000. For actions less than £10,000, you bring a "small claim" and this means that even if you lose the case you won't be liable for the other side's costs. If you win the case then not only will you get your money plus interest but also you will recover all of the costs of the action. For actions more than £10,000, you go to something called the "fast track" and in the event that you lose the case, then you could be liable to reimburse the winner some of the costs. This means that in addition to not recovering your own money, you would lose your own court fees and also you would have to to bear the costs of the other side probably something less than £5000 – but as a rough guess. If you bring your court claim then your chances of success are almost 100%. Frankly if you brought a court claim then I can imagine that big motoring world will put their hands up and pay you out rather than face go to court and losing and getting a judgement against them. However, it you need to consider that this is a risk factor – although my view it is a negligible risk factor. If you did bring a court case, it wouldn't be instant. If they put their hands up then it would probably happen very quickly. If they didn't put their hands up then you could take anything up to a year for the matter to be resolved and during that time you would be without your car and without your money and in the middle of litigation. I'm explaining this to you say that you understand how it works. Bring a court case would be really the last resort when everything else has failed. However, I'm quite certain that you would win and it would be stupid of big motoring world to try to resist. In order to bring a court case you would have to send a letter of claim giving them 14 days to accept rejection and organise the refund otherwise you would begin the claim. Don't imagine that you could bluff this. If you did send a letter of claim then you would have to go through with it otherwise you lose all credibility and you might as well pack up and go home. So with this in mind, here are possible courses of action you could take. You can simply wait and see what their reaction to your letter of rejection will be. However they may not reply or else they may find some other reason to delay and of course during that time you will be without your car and without your money blah blah blah, not knowing if big motoring world were going eventually to start acting sensibly and respectfully towards you. The second thing you can do – and I think this has been suggested on Facebook – is that you can go along there and simply make yourself present and talk to other customers and generally speaking make a nuisance of yourself and embarrass them to the point where you would be explaining to other potential customers to be careful, to look on Facebook, and to do some careful research before they put their business to big motoring world. This has a reasonable chance of success although you would have to be careful. You should go accompanied by a friend and there should be no anger, no arguments, nothing that could be considered as being overly aggressive so that big motoring world would have no justification in kicking you out or even worse, calling the police. If you did this, then I would suggest that you record everything on the telephone carried in a pocket. A fully charged battery will probably keep a voice recorder and a telephone going for more than 20 hours or 30 hours. The other person can video any incidents so that everything is clear and you can inform big motoring world then it will be going up on the Internet. If you did this, my favourite option would be to issue the letter of claim giving them 14 days, and then going along to big motoring world with a copy of your letter of rejection and a copy of the exchange between the mechanic and the warranty company and a copy of your letter of claim – all settled together – and probably about 20 or 30 copies in all and I would start handing them out to any customers who came in. Big motoring world will soon get the picture and they will either move your the premises in which case you stand outside and carry on doing it or they will finally give in. Of course there is a chance that they won't give in and they will simply call your bluff – but in that case I think you have no choice other than to follow through with your 14 day threat in the letter of claim and to begin the legal action. At the same time you should be putting up reviews on Google and also trust pilot explaining exactly what has happened and also explaining that the mechanic has confirmed to the warranty company that there is the serious problem, that you have asserted the right to reject and that this is been ignored by big motoring world and that you have now sent a letter of claim and that you will be starting a legal action in 14 days. Once again, don't bluff about the legal action. If you threaten it – then you must mean it – and on day 15 you click of the claim. You don't need a solicitor for any of this. It's all fairly straightforward and of course we will help you all the way that it the decision is yours to make and I think you need to make it fairly quickly. I think the cost of starting an action for about £13,000 is 5% and then also if it goes to trial which I would say is almost impossible – there would be an additional fee. You would claim interest at 8%. A judge might award a lower figure but frankly if you can show that big motoring world is attempting to ride roughshod over your very clear statutory consumer rights, I can imagine that the judge will want to show displeasure by awarding the full 8% which is a pretty good rate – even though it's not compensation for the hassle and the distress you are going through. If you decide to get solicitor, then if you win the case, because it is over £10,000 you will recover some of your costs but you won't recover all of them. If the solicitor begins by having exchanges of letters then I doubt whether you will be up to recover the cost of those and you could easily find that you're chalking up 500 quid or even a thousand simply on initial exchanges of correspondence. Also you need to bear in mind that if after having exchanges with a solicitor, big motoring world cave in – then you definitely won't get those costs back because you won't have gone to court and therefore a judge will not have made the order for payment of those costs. I suggest very strongly that you avoid paying any money for a solicitor and that you do it yourself. It's not a big deal – although you will have to you react quickly to the help we offer on this forum. Also, an additional benefit is that you will learn a lot and you will gain confidence and eventually you will feel good about suing anybody else who gets in your way. Nothing not to like! If you do decide to instruct a solicitor then you must take control of the solicitor. Most of them prefer to sit in an office writing letters on the clock. If you do decide to instruct a solicitor then you must instruct the solicitor very firmly that they should send one letter of complaint giving seven days. A second letter – a letter of claim giving 14 days and that they must then begin the action. If you don't do this. If you don't take control then it will simply cost you money, you will be without your car even longer and of course without your money. The whole thing is a nightmare. I think I've laid out the options but please do ask questions. I hope you can see that this is the kind of advice that you won't be getting on Facebook. Nothing against Facebook. It's good as a meeting place and to make people realise that they aren't on their own – but after that the advice given is weak and confusing.  
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      The judge's reasoning is very useful and will certainly be helpful in any other cases relating to third-party rights where the customer has contracted with the courier company by using a broker.
      This is generally speaking the problem with using PackLink who are domiciled in Spain and very conveniently out of reach of the British justice system.

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      Please note that a recent case against UPS failed on exactly the same issue with the judge held that the Contracts (Rights of Third Parties) Act 1999 did not apply.

      We will be getting that transcript very soon. We will look at it and we will understand how the judge made such catastrophic mistakes. It was a very poor judgement.
      We will be recommending that people do include this adverse judgement in their bundle so that when they go to county court the judge will see both sides and see the arguments against this adverse judgement.
      Also, we will be to demonstrate to the judge that we are fair-minded and that we don't mind bringing everything to the attention of the judge even if it is against our own interests.
      This is good ethical practice.

      It would be very nice if the parcel delivery companies – including EVRi – practised this kind of thing as well.

       

      OT APPROVED, 365MC637, FAROOQ, EVRi, 12.07.23 (BRENT) - J v4.pdf
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PPI and First Plus


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Hi

 

Welcome to CAG. There are quite a few cases going on at the moment. I will move your thread to the PPI section where you will get more help.

 

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WARNING TO ALL

Please be aware of acting on advice given by PM .Anyone can make mistakes and if advice is given on the main forum people can see it to correct it ,if given privately then no one can see it to correct it. Please also be aware of giving your personal details to strangers

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Can someone help with First Plus. I am being offered (as of this morning) £2,106 from a possible £19,930 PPI. This will not come to me it will be offset on the loan which was £100,000 and if I close the loan early they will charge £764.00 interest + £150.00 admin fee. To put their calculations in to perspective:

 

£100,000 original loan in June 2005

£19,930 PPI payment added to loan

£119,930 TOTAL

 

They say there is £115,373 outstanding

They will credit £2,106

£113,267 remaining on the loan

£764.00 + £150.00 additional charge if I then pay the loan in full

 

Should I be accepting this £2,106 they are offering or take things further.

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Can someone help with First Plus. I am being offered (as of this morning) £2,106 from a possible £19,930 PPI. This will not come to me it will be offset on the loan which was £100,000 and if I close the loan early they will charge £764.00 interest + £150.00 admin fee. To put their calculations in to perspective:

 

£100,000 original loan in June 2005

£19,930 PPI payment added to loan

£119,930 TOTAL

 

They say there is £115,373 outstanding

They will credit £2,106

£113,267 remaining on the loan

£764.00 + £150.00 additional charge if I then pay the loan in full

 

Should I be accepting this £2,106 they are offering or take things further.

 

Hello Sooze,

 

Personally I would not accept this token off from them in any shape or form. If the ppi was mis-sold, I would be wanting the full ppi premium, the interest they applied to it. This is hidden in the total interest that they applied to the Total charge for credit. What was the total amount payable by you and the lenght of term and interest rate applied to the loan.

 

We are taking about a hell of a lot of money here so I would think very carefully about accepting this amount, when you may be able to reclaim back the full premium of £19,930, plus the interest they charged you on top. Once you get this total figure, you then apply contractual interest on top from the date the loan was taken to the date they pay it up.

 

This is just an example of contractual interest you would ask for

 

on the premium alone (exluding the amount of interest they applied)

 

loan taken out 30/06/2005

 

ppi premium £19,930.00 Contractual interest at 8% is £3,712.99 so you would be asking for £23,642.99

another example

 

premium £19.930.00 Contractual interest at 14.9% is £6,915.44 so you would be asking for £26,845.44

I hope you understand the angle I am coming from and they want to offer £2,106.00 and keep the rest. MMmmmh!!!!!!!

 

If you need help and support just ask.

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

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Good morning HHNF,

 

Many thanks indeed for replying to my first ever post. I am so glad these forums exist because most of the time you just feel 'alone' on these matters.

 

I now agree it would be stupid to accept their rather small offer! I was sold the policy with this additional figure because I was told I would receive the £19,930 back in full at the 5 year point either by cheque or could offset it against the loan. I was pretty desperate for the loan and agreed to it, who wouldn't it seemed an attractive offer. I would have to wait a further 2.5 years for it to pay out. In the mean time I have put my property on the market because I just want to get out of debt. I think the only part of mis-selling the policy is that I was 'not' told I could go elsewhere and get my own PPI policy to cover the loan, which one would assume would have been cheaper.

 

Do you know of anyone else that has challenged First Plus? I think I am worried that it's such a large sum to reclaim (I have successfully reclaimed all my bank charges from First Direct with one letter) that they might insist that I clear the loan immediately which is secured against my property. This is the first I have heard about PPI and the mis-selling of so am naturally cautious.

 

Thank you again for getting back to me.

Sooze

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Hi HHNF,

 

Having thought about it there is another issue with this loan in that I was never told that if I wanted to clear the loan anytime before the 5 year period was up that they would then add the PPI premium to it.

 

£100,00 original loan

£19,930 PPI which I clearly did not need but it was encouraged as a bonus

£119,930 Total amount of loan (7.7% variable)

 

£115,393 outstanding balance if I paid the loan in full (today), why have I got to pay the additional £15,393? This was something they never mentioned when I took out the loan!!

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Looks like I have my 'knickers in a twist here'. Having now read the T&C's the additional £15,393 would be interest because I am paying the loan back early (when my property sells). I still don't think I ever needed the cover though?

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Hi HHNF,

 

Having thought about it there is another issue with this loan in that I was never told that if I wanted to clear the loan anytime before the 5 year period was up that they would then add the PPI premium to it.

 

£100,00 original loan

£19,930 PPI which I clearly did not need but it was encouraged as a bonus

£119,930 Total amount of loan (7.7% variable)

 

What was the total amount payable? Did they not charge you any interest of the loan?????

 

How much were the payments every month and how long was the loan to run for.

 

£115,393 outstanding balance if I paid the loan in full (today), why have I got to pay the additional £15,393? This was something they never mentioned when I took out the loan!!

 

The breakdown you have given on the loan do not sound correct.

 

It is normally like this/

 

Amount of loan 100,000

ppi premium 19,930

total credit 119,930

interest at ?? ?????????

 

Total charge to credit ???????????

 

£????monthly over ????months/years

Interest at

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

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Hi HHNF,

 

These are all the figures that are on the agreement:

 

Cash Loan £100,000

PPP Loan £19,930

Total £119,930

 

Monthly repayments on Cash Loan £737.43

Monthly repayments on PPP loan £146.97

Total Monthly payment £884.40 (now 998.00)

 

Over 300 months (25 yrs)

Variable interest 7.7%

 

That's it there are no other figures on the Loan Agreement.

 

Once again I REALLY appreciate your help and advice on this matter.

 

Kind regards,

Sooze

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Hi HHNF,

 

These are all the figures that are on the agreement:

 

Cash Loan £100,000

PPP Loan £19,930

Total £119,930

 

Monthly repayments on Cash Loan £737.43x 300mths = £221,229.00

Monthly repayments on PPP loan £146.97 x 300mths= £44,091.00 This is the one you go for:D

Total Monthly payment £884.40 If you multipy the £884.40 x 300months the minimium total charge for credit is £265,320.00 so they applied £145,390.00 in interest(now 998.00)you will be paying more interest now because the interest rate is variable.

 

Over 300 months (25 yrs)

Variable interest 7.7%

 

That's it there are no other figures on the Loan Agreement.

 

Once again I REALLY appreciate your help and advice on this matter.

 

Kind regards,

Sooze

 

Hello Sooze,

 

I have done a few simple calculations to give you a rough idea of how much interest they have applied to this loan.:o I have worked on the basis of the ppi payment times 300months So the figure in red above is approximately what you would be entitled to reclaim back. The interest rate is variable and can go down as well as up. It would be diffuclt to work out exactly how much of that varied interest applied to the ppi. I am not that clever to do this

 

Monthly repayments on PPP loan £146.97 x 300mths= £44,091.00 This is the one you go for:D

I now need to work out how much contractual interest on top of that you could ask for, so will get back to you on this.

 

Keep smiling we will get there:D

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

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Hello Sooze,

 

I need the exact date that the loan was taken out pleas

 

I have worked out the contractual interest as an example from the 30/6/2005 at 7.7%.

 

ppi premium and interest charged £44,091.00

contactual interest at 7.7% 8,223.88

 

So your top line is £52,314.88 to ask for back with contractual interest.

 

Your bottom line is £44,091.00 without contractual interest.

 

You call, not theirs

 

I do think they will choke when you tell them that you have done a bit of investigation regarding the loan and ppi.

 

Pick your jaw off the floor now and get back to me with the actual date of the loan.

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

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Morning HHNF,

 

I dunno about about jaw on the floor my whole body went.....:o

 

These are enormous figures and my signature on the loan was dated 5th June 2005. I think something of this enormity will end up surely with the FOS and would not qualify for the small claims court because I think their threshold is £5,000.

 

Kind regards,

Sooze :)

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Hello HHNF,

 

Look at my stars today....

 

Without hope or inspiration... where are we? Strangely, though, we consistently undervalue these. Instead, we become amazed by the mundane - or fascinated by the fiscal. It's almost as if the light of true joy is too dazzling to look at... so we turn our eyes towards whatever reflects it least! How else do we explain our peculiar propensity to feed flames of fear while starving our optimism of oxygen? Whatever you lack now, there's one thing you have in abundance: faith. Foster that. You haven't got a 'problem'. You have an incredible opportunity.

 

;)

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Whoaa - hang on a minute. You will be paying this interest monthly - added to the loan, and will therefore have only so far have paid interest for the time you have had the loan for. If you get the PPI refunded this will be deducted from the balance of the loan and will therefore no longer attract interest.

 

I wouldn't go chasing for money you haven't yet paid - you would more than likely be laughed out of court. :)

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Morning HHNF,

 

I dunno about about jaw on the floor my whole body went.....:o

 

These are enormous figures and my signature on the loan was dated 5th June 2005. I think something of this enormity will end up surely with the FOS and would not qualify for the small claims court because I think their threshold is £5,000.

 

Kind regards,

Sooze :)

 

Hello Sooze,

 

Without going back to look at your thread, where are you now in the process of reclaiming it back, I know they have made a pittence of a gesture.

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

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Hi HHNF,

 

I have only made a phone call to them Saturday morning and they offered me £2,106 to be deducted from the loan. If I then paid the loan in full they will charge me £764 early settlement interest and £150 for something else, admin charge.

 

I have been researching as many articles as possible over the weekend. I did a 'google' search for "First Plus PPI mis-selling" and it came up with a number of articles in the press and on this forum which I am wading through.

 

Kind regards,

Sooze :)

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Whoaa - hang on a minute. You will be paying this interest monthly - added to the loan, and will therefore have only so far have paid interest for the time you have had the loan for. If you get the PPI refunded this will be deducted from the balance of the loan and will therefore no longer attract interest.

 

I wouldn't go chasing for money you haven't yet paid - you would more than likely be laughed out of court. :)

 

Hello RR,

 

Thanks for your comments, at this present time we are just trying to work out the figures and start talks for negotiations to a refund on this mis-selling. I am sure that any premium and interest that has not been as you state "paid for" with be used to reduce the balance of the loan. Any premium and interest paid for would be entitled to be reclaimed back to the customer, plus contractual interest to date. I am sure that the actual claim that is put to the creditors, will be substantially higher that what they are actually offering.

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

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Hi HHNF,

 

I have put a letter together for First Plus and will send it off tomorrow. I have not put any figures in it so lets see what they offer, if anything. I would love it to be anything near the figures you have worked out, instead of the verbal £2,106 so far.

 

Kind regards,

Sooze

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Hi HHNF,

 

I have drafted a letter that I will send off tomorrow.

 

I purchased the above policy from you on 7th June 2005 but now believe that I was mis-sold this Payment Protection Policy.

This is due to the fact that I was not given the correct information when the policy was sold to me, as:

· your salesperson did not tell me that the policy was optional and that I did not actually need to purchase the cover through First Plus.

· your salesperson did not give me full information on what the policy would and would not cover for example that the loan only covers 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.

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 with eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

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Hi HHNF,

 

I have drafted a letter that I will send off tomorrow.

 

I purchased the above policy from you on 7th June 2005 but now believe that I was mis-sold this Payment Protection Policy.

 

This is due to the fact that I was not given the correct information when the policy was sold to me, as:

 

· your salesperson did not tell me that the policy was optional and that I did not actually need to purchase the cover through First Plus.

 

· your salesperson did not give me full information on what the policy would and would not cover for example that the loan only covers 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.

 

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 with eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

 

Hello Sooze,

 

You are being very generous to them giving them 8weeks to respond. Personally I would give them 14days to respond, then send a letter before action, biving them 14days and then go the FOS.

 

I alway put this at the end of my prelim letter, but it your call at the end of the day

 

My targets to resolve this matter

I am writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity.

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive this payment.

 

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that this time frame is sufficient for a large company such as yours with its dedicated staff and departments. After that, there will be no further communication from me and I shall refer this complaint to the FOS. (issue a court claim at the expiry of the second deadline.)

 

Yours faithfully,

 

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

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Good Evening HHNF,

 

Thanks for replying to my letter article. I actually copied the letter from Martins Money forum. I think the best thing to do is send a mixture of both the letters giving a much smaller time-frame to respond.

 

Cheers :D

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Hello Sooze,

 

You are being very generous to them giving them 8weeks to respond. Personally I would give them 14days to respond, then send a letter before action, biving them 14days and then go the FOS.

 

I alway put this at the end of my prelim letter, but it your call at the end of the day

 

My targets to resolve this matter

I am writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity.

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive this payment.

 

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that this time frame is sufficient for a large company such as yours with its dedicated staff and departments. After that, there will be no further communication from me and I shall refer this complaint to the FOS. (issue a court claim at the expiry of the second deadline.)

 

Yours faithfully,

 

 

Hi HHNF,

 

It's been a long day....wading through the minefield of paperwork and other forums.

 

I will have to alter my letter for the following reasons:

 

1) First Plus is a 'single premium' policy and you can't make a reclaim (this is according to (moneysavingexpert.com) all you can ask for is a partial or full refund of the premiums paid to date. This would put my figures:

 

29 months of £146.97 = £4,262.13

29 months of interest at 8% = £340.97

TOTAL £4,603.10 approx

 

2) I said in my letter that I was unaware that the cover was only for 5 years and that I did not realise this until now (this is true!) They will point out that all over their paperwork this is stipulated including their T & C's. My argument would not stand up in court on this one.

 

3) The points I have going in my favour are that I was NOT made aware that I could get this cover elsewhere and that it would make no difference to the decision of whether the loan was approved or not.

 

4) In their paperwork (in black and white) they asked the following question:

"Would your current employment provide sufficient income to repay your borrowing in the event that you are unable to work through accident or sickness? I answered YES, so it begs the question of why I was still encouraged to purchase the PPI.

 

Apologies for the long winded article but I thought it might be helpful to other people wanting to claim refunds from First Plus.

 

I will re-draft my letter taking on board your comments and will let you know the outcome.

 

Cheers for all your help with this claim.

Sooze

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Hi HHNF,

 

It's been a long day....wading through the minefield of paperwork and other forums.

 

I will have to alter my letter for the following reasons:

 

1) First Plus is a 'single premium' policy and you can't make a reclaim (this is according to (moneysavingexpert.com) all you can ask for is a partial or full refund of the premiums paid to date. This would put my figures:

 

29 months of £146.97 = £4,262.13

29 months of interest at 8% = £340.97

TOTAL £4,603.10 approx

 

2) I said in my letter that I was unaware that the cover was only for 5 years and that I did not realise this until now (this is true!) They will point out that all over their paperwork this is stipulated including their T & C's. My argument would not stand up in court on this one.

 

3) The points I have going in my favour are that I was NOT made aware that I could get this cover elsewhere and that it would make no difference to the decision of whether the loan was approved or not.

 

4) In their paperwork (in black and white) they asked the following question:

"Would your current employment provide sufficient income to repay your borrowing in the event that you are unable to work through accident or sickness? I answered YES, so it begs the question of why I was still encouraged to purchase the PPI.

 

Apologies for the long winded article but I thought it might be helpful to other people wanting to claim refunds from First Plus.

 

I will re-draft my letter taking on board your comments and will let you know the outcome.

 

Cheers for all your help with this claim.

Sooze

 

Hello Sooze,

 

You sound like you are over saturated with information and doubt today.

 

They way I understand the process of reclaim back ppi when the loan is still running is.

 

They have charged you £xxxx as a upront single premium to which they do charge interest. You don't know how much interest, because it is hidden in the charge for credit. The overall charge for interest on the whole loan.

 

So as soon as you sign the agreement you owe them £xxx for the ppi and interest.

 

So you start to pay it back. thus reducing the amount you owe them for the ppi. If you pay them for five years you have paid off the ppi and will then continue to pay of the loan balance.

 

Now if you are into the payments for 2yrs,and you cancel the policy. you have paid that much off the ppi, so you can rightfully reclaim those payments back. but what happens to the amount that you have not paid for. They are still in the loan balance that you owe. They will refund those monies into the outstanding balance and reduce the amount that you actually owe.

 

I do hope this makes sense to you. Previously I was just working out how much the figures where for a starting point and help you understand the figures.

 

Is the policy still running

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

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