PPI and First Plus

[hellhasnofury]

If you wish to cancel your ppi

[Sooze]

If you wish to cancel your ppi

 

Morning HHNF,

 

Overloaded with information is right! I have read the website above having looked back at one of your previous posts - thanks. I think what I am trying to do with the letter is just stick to the facts and get back what's fair and reasonable, which with all your help I should be able to do.

 

Getting back anything will be a bonus because without you and this site I would have been non the wiser. Thank you for all your support.

[Sooze]

Hi,

 

Can anyone tell me where I can get an S.A.R template?

 

Cheers,

Sooze

[hellhasnofury]

Hi,

 

Can anyone tell me where I can get an S.A.R template?

 

Cheers,

Sooze

 

Full S.A.R - (Subject Access Request) for ppi

[Sooze]

Full S.A.R - (Subject Access Request) for ppi

 

Hi HHNF,

 

Many thanks I will send that off today.

 

Cheers,

Sooze

[hephalump]

Hi there, i hope someone can help me understand what is going on we took out a firstplus loan for £70000 in feb 2006. We are looking to settle up early (we know we are going to be hit with erc) but when we took out the loan at the start we were told about this great little policy where we pay in for 5 years to a policy which we would get back our premiums. Anyway at the time this was a perk for doing business with them and which according to the sales person was a very good idea(of course it would be). Policy payment £144 a month which according to my calculations is £8640 for 5 years worth of cover, anyway having got out the loan agreement payment protection have now realised actual ppp loan (not mentioned it was a loan)amounts to £17750????? Making loan repayable £87750!!!!!We were put under a lot of pressure at time to get things returned and i mean alot i.e daily phone calls. this policy has been loaded from the start, where has this mysterious amount materialise from? Honestly when policy was taken out no mention of it being a loan was told it was an insurance policy to cover us in the event of disaster. please help.

[reidnet]

Hi Folks,

Just some info on Single premium PPI policies, This is part of a copy of a press release which I did not too long ago. Also have added some interesting Info regarding Firstplus at the end.

 

Press Release.

Don’t be conned with Cashback options offered by PPI Providers.

Some big named lenders like FIRSTPLUS sell their own branded Single Premium Payment Protection Insurance and often use a term that they call with “Cashback”. The Cashback option is used as a sweetener under the guise that you will receive all of your premium (Less 5% Insurance Tax) back if certain conditions are met. This of course looks good in Advertisements but in reality it can still cost consumers a lot more than standalone Payment protection Insurance from companies like Paymentcare or Brittish Insurance.

As most single premium policies only cover you for 60 months and the premium is added onto to you loan you have to also consider the true cost of the policy. If your loan is for longer than 60 Months you have to remember that you will still be paying interest on the amount used to purchase the policy until your loan is completed. You have to also consider the fact if your loan is for 120 months you will only be covered for 60 Months and you will have to purchase another policy to cover the remainder of your loan.

Certain conditions will apply to the Cashback option, some of these conditions are not clearly laid out in the policies and of course the onus is on the consumer to claim the cashback within 30 days of the expiry of the policy. You have to ask the question here too, If the consumer fails to request the cashback within the required time what happens to the Cash ?, Could it be the case that the lender will have already obtained this refund and if the consumer does fail to claim it back it will simply add to their profits?.

I have myself asked one company which I had a Cashback PPI policy with ( I settled my loan early) to provide me with confirmation from the Insurance provider that the policy had in fact been cancelled. Even after asking for this confirmation on at least 3 occasions they still have not provided any proof that the policy has in fact been cancelled. Could this be that the policy never gets cancelled and the lender will claim the cashback to add to their overall profits.

An example of the grossly Overpriced policies that these lenders use..

The example used relates to a Cashback policy from Firstplus which covered a monthly payment of just under £200.00.

Cost of Payment Protection Insurance Policy £3388.10

Interest @7.9% APR (Variable) (60 Months) £1357.47

True Cost of Payment Protection Policy £4745.57

Cashback Payment if Conditions met £3218.69

Actual Cost for 60 Months Cover £1526.87

The same level of Payment Protection from Paymentcare.co.uk for the 60 Months would cost £660.00 making a considerable saving of £866.87 which makes the policy from Firstplus over double the cost even if you do manage to claim the Cashback. Obviously if your original loan was for longer than 60 months you would still be paying Interest on the amount advanced to purchase the policy which could add another 1-2 thousand pounds.

Should you be in a position to be able to settle the whole loan early then you will be in for a bit of a Shock with this type of policy. I managed to settle my whole Loan with Firstplus after 30 Months.

Cost of Payment Protection Insurance Policy £3388.10

Interest @7.9% APR (Variable) (30 Months) £ 677.99

True Cost of Payment Protection Policy £4066.09

Rebate given for Cancelled PPI £ 82.26

Actual Cost for 30 Months Cover £3983.83

If cover from Paymentcare had been taken to cover the loan it would have cost £330.00 and would have saved me a whopping £3653.83. This made the 30 months cover that I had Almost 12 times more Expensive than if it had been purchased from Paymentcare.

This is possibly another reason that Both the FSA and the OFT are investigating the whole Payment Protection Racket, Of course there are growing concerns over the Mis-Selling of Payment Protection Insurance as well. This can be seen by the increased number of Consumers seeking Advice from The Consumer Action Group Website (www.consumeractiongroup.co.uk).

Now I am not against Payment Protection Insurance at all, though I would certainly never recommend a single premium policy or a policy provided by the big named Lenders. How many Lenders have told Consumers that they can shop around for Independent Payment Protection Insurance rather than buying their own branded product, I know none of the Lenders I have ever used have given that advice. At least the Competition Commission are looking into Lenders selling their own branded Payment Protection Insurance.

Payment Protection Insurance can be very beneficial to consumers if it is sold properly and the consumer is given the choice to shop around for Cover.

If you intend to Purchase Payment Protection Insurance I would recommend the following:,

1) Shop around and remember you do not have to take PPI from the same company that offer you a Loan or Hire Purchase.

2) Payment Protection Insurance cannot be made a condition to obtain a loan or finance.

3) Read the Terms & Conditions from start to finish, If you do not fully understand the terms & Conditions Ask Questions. (always ask these questions in Writing if possible, that way there can be no dispute at a later date). Make sure that you understand what is covered.

4) Make sure that you Disclose fully any previous medical conditions etc, this is one of the main reasons that PPI claims are turned down.

Ian Reid

Thursday, 24 January 2008

Now regarding Firstplus in Particular & their Cashback [problem]..

PPI taken out with Firstplus prior to January 2005 was insured through a firm called Cassidy Davis (CD) and CD also insured the Cashback element of the policy.

For PPI taken out After January 2005 things changed with Barclays Insurance Dublin (BID) taking over the insurance of the PPI.. BUT NOT THE CASHBACK element. The Cashback Element is fully funded by FIRSTPLUS themselves.

You can probably put 2 + 2 together from there and see it will not be in Firstplus financial interest for customers to reach the 5 year point where they can claim the cashback..

You may also come to the same conclussion as myself on this part.. If you settle the loan before the 5 year PPI period you will recieve a fraction of your premium as a rebate..and of Course Firstplus add to their profits with not paying out a reseonable rebate or Cashback. Profit straight into the Fat Cats back pocket to say the least.

[hephalump]

Hi there you and I are both sad individuals, when i spoke to some cocky know it all he told me the outstanding amount of ppp i.e. the £17750 would only be decreased by 14%. could this be right after all I am paying off something that was preloaded with 20 years interest