PPI and First Plus

[Sooze]

Has anyone reclaimed their PPI with First Plus?

[ukaviator]

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.

 

Uk

[Sooze]

Hi ukaviator,

 

Many thanks, haven't got a clue how it ended up under bear-garden. Now I seem to have 2 posts you can delete one.

 

Regards,

Sooze

[Sooze]

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.

[hellhasnofury]

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.

[Sooze]

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

[Sooze]

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!!

[Sooze]

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?

[hellhasnofury]

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

[Sooze]

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

[ReasonableRon]

The amount of interest and total amount repayable will not be shown because you have a variable interest rate.

 

I would imagine that the interest is added monthly (like a mortgage), but the total amount payable is not known due to possible future fluctuations in the interest rate.

 

HTH

[hellhasnofury]

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

[hellhasnofury]

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.

[Sooze]

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

[Sooze]

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.

 

[ReasonableRon]

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.

[hellhasnofury]

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.

[Sooze]

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

[hellhasnofury]

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.

[Sooze]

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

[Sooze]

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.

[hellhasnofury]

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,

 

[Sooze]

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

[Sooze]

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

[hellhasnofury]

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