angling_man/ Firstplus PPI reclaim***won***

[angling_man]

Hi,

 

I'm new to this forum, having just found it, and hope someone can help me out here.

 

I received a call today from a claims management company, telling me my PPI was missold to me by Firtsplus back in July 2004. They said I can claim upto £21,000 compensation, of which they would take a 25% fee + vat, leaving me around £15k. I'm a bit wary of this and the fact they want 25%, so am considering taking up the case myself. Any advice would be most welcome.

 

Here's the details of my loan...

 

I took out a £40k secured loan for consolidating my finances (which I have regretted ever since as it didn't help my financial situation one bit). On top of that loan, they also sold me a 5-year PPI for £7,972, which was included as part of the loan.

 

The loan was over 240 months, with an initial variable APR of 8.9%.

 

From what I have read on this forum, it appears the PPI was missold for the following reasons...

 

1. I was not asked whether I had any other insurance which would cover the loan

2. I was not told I could buy PPI elsewhere to cover the loan

3. I paid upfront for the PPI but it was not explained that there were some PPI policies where you could pay monthly

4. I was informed about the true cost of the PPI as it would incur interest

5. I was told that if I didn't claim, the PPI was free as it would be refunded after the 5 years

 

So, here are my initial questions...

 

1. Is it worth making a claim?

2. My APR is variable, but I believe the PPI has cost me around £12,000 so far. Can I claim all of this back?

3. If this money is paid as compensation, rather than taken off the outstanding balance, as the claims company have described to me, how is the compensation for ongoing variable interest over the remainder of the loans term calculated and compensated for?

4. I am currently on a real bitch of a contract, with variable APR they keep increasing for no reason and massive early settlement penalties. Is it possible to get them to make a good will gesture and change this to more agreeable terms?

 

My current financial situation is such that a lump sum in my pocket would actually be of more use to me than reducing the term or payment amount by having the compensation taken off the outstanding balance.

 

All comments, thoughts and advice are welcome. If you need more detail, please let me know.

 

Many thanks in advance

[pompeyfaith]

Firstly welcome to the PPI forum

 

I too am about to go down this road with a very tricky one i.e 4 co-op loans over last 6 yrs that have been settled and another taken out.

 

The way i see it YES definetly worth claiming back on the grounds above the way i believe it should be done is they refund all the PPI plus interest to you as they have in all tense and purpose borrowed that money from you then re-finance the current loan without PPI at the APR used when you originally took out the loan whether you use the refund to bring down the balance owed or not is up to you but it should not come off the balance as it was not part of the actual monthly loan repayment.

 

I would start by sending them a letter explaining your reasons for a refund of PPI along with a PPI S.A.R to get all the information they hold on you regarding this loan that would include the loan agreement,statments of payments etc remember to include a payment to them of £10 which is the statatory fee to search for your info.

 

When they re-finance the loan that may give you the oppotunity to agree a fixed rate but you will have to cross that path when it arrives.

 

Hope the above is of help to you.

 

Regards

 

Leon

[pompeyfaith]

Here is a link to the PP1 S.A.R letter, you will need to adapt it to suit your needs.

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/118145-r-subject-access-request.html

[angling_man]

Thanks for the responses so far.

 

I've just downloaded the example SAR and will be sending that tomorrow, by registered post of course. I'll keep the post updated with progress.

[Goldlady]

Hi, found your thread:p

 

First Plus sent me masses of information and two tapes of phone conversations. It was most useful I can tell you. Now we wait......

[pompeyfaith]

Yes very important rule always get receipts for everything you send never know when you will need them !!!!! good luck

 

Regards

 

Leon

[angling_man]

The SAR was sent Friday, so now I wait and see...

[raccoon19]

Hi Angling man, I am doing one against First Plus also. More or less the same thing as you. I have instructed a solicitor to do it for me. I know they are going to take 25% but I am not able to take the task on myself. I was told it will take quite a few months to process so I will have to wait and see what happens.

I am doing a similar thing with Lloyds Credit card. I took it out before a certain date and seemingly the wording is wrong or something along the lines of that so hopeing to get that settled also.

Good luck anyway with your claim.

 

raccoon19

[angling_man]

Good luck with yours too raccoon19.

 

The main problem I have with using solicitors is that I stand to get my PPI premium refunded next year anyway, returning £8k to me. I'm concerned that if they win and the payout is less than £10.5k, I will actually get less than £8k after they take their fees.

[raccoon19]

Hi Angling man, Thats right what you say and when I caught hold of the wording in my letter from the solicitor I have took out an insurance policy. Although it is a free one I am covered incase of things going pear shaped and I dont have to pay anything back to either them or the other side. It also protects me against getting a lower amount where I would be out of pocket.

[angling_man]

I now have the SAR from FirstPlus, but there are some phone calls missing. They've sent me just 4 recordings - one call on 8th July, then 2 calls on 14th July at the end of which I tell them I'll call them back in 20 minutes. Then the next call is on 28th July, 2 weeks later!

 

It's quite clear from the conversation that there was at least one call prior to 8th July. I also distinctly remember one call in which they told me the PPI was free if I don't claim because they refund the money after 5 years.

 

Could they have deliberately destroyed those recordings or chosen not to send them to me because it's evidence against them? Is it worth me trying to get a list of calls made & received from my telephone provider to prove they've ommitted a call?

 

Anyway, in the recordings I do have, they don't even ask about PPI, they just include it in the quote and tell me there's a cash back after 5 years. It's only in the final call that they slip in the word optional when confirming all the details of the loan.

 

So at no point do they...

 

1. Ask if I have other insurance which would cover the loan

2. Tell me I could buy PPI elsewhere if I wish

3. Explain that the PPI could be paid monthly

4. Explain the true cost of the PPI due to the interest it would incur

 

They misled me about the details of the loan too. They told me it was more flexible than a non-secured loan and I could pay in a lump sum whenever I want, which they said non-secured loans don't allow. I've since found out there are huge penalties for lump sum payments and have found the loan much less flexible. I also now know there are plenty of unsecured loans that allow lump sum payments without penalty.

 

They also never told tell me the loan was variable rate, even though I clearly tell them in the calls I'm looking for a fixed rate loan. I remember calling them to query the first interest rate change letter I received, yet that telephone call recording isn't included in the SAR either.

 

So, do I have grounds to claim mis-selling of the PPI?

 

Do I have any grounds for claiming they mis-sold the loan too?

 

What are my next steps?

 

Regards,

AM

[Goldlady]

Looking back at your earlier post about getting the refund, are you sure that you are going to get £8k back? I seem to remember my friends were under the impression that they were going to get everything they had paid back but when I looked into it they would only have got the first year's premiums and not the whole 5 years worth:mad:. They had been misled about that but I couldn't prove that from the phone calls.....

 

I do think you have enough to go after them - the fact that phone conversations are missing is not helping them as you cannot find anywhere that they have discussed the PPI as you mention above.

 

Look into what I say about the refund before you decide what to do next.

[angling_man]

I've just double checked the documentation. As long long as I haven't made a claim I get my premium, less any Insurance Premium Tax and interest charges, returned as Cashback. However, I do have to claim this 'Cashback' within 30 days of the expiry of the policy.

 

Is there anything I might have missed?

[Goldlady]

I am not convinced - there has to be a catch. Can you ring them in the morning to get confirmation of this? I can't believe that they would be so generous:confused: Sorry to be so negative...

[angling_man]

Will do. I'll get them to quote the exact amount too.

 

In the recordings in the SAR they actually state the value of the Cashback. I think the catch is that I have to apply for the Cashback within 30 days of it expiring. I bet loads of people get caught by that because they forget about it after 5 years!

[Goldlady]

You could be right - I will await the result of your enquiry. I suppose if you are right they will still have managed to charge you interest on the premiums for the five years. Might be better to wait, if it is not long, and get the premiums back and then hit them with a claim for the interest on the basis that it was mis-sold:confused:

[angling_man]

I can claim my 'Cashback' in July next year, but would rather get it all sorted out now.

 

Interest to date on the premium is about £3,500. In July it'll be about £4,500.

[alanalana]

Hello angling man,

 

I think the catch is that I have to apply for the Cashback within 30 days of it expiring. I bet loads of people get caught by that because they forget about it after 5 years!

 

Yes you will undoubtedly be 100% correct in this. I would suggest after you have confirmation of the cashback that when you come to claim, If it is by post send it special delivery or better still if you can deliver by hand and ask for a written receipt on the spot. The thing is to ensure proof of delivery within the 30 day timescale as they may well try and deny getting the claim:eek:

 

aa

[angling_man]

Thanks aa, that's good advice. I'll make sure I send all communication via Special Delivery.

[Goldlady]

So that is where they score then, on the interest!!! It is obscene. I think you are right to try and claim it now - assuming of course that they have some money left to pay you with:eek:

[angling_man]

Yes, that's why I'm keen to deal with this now. Who knows what the current economy plus 1,000's of PPI claims hold in store for FirstPlus!!!

[Goldlady]

Well I know they have stopped doing secured loans as of a couple of months ago, so not sure about their current situation.

 

However if you still have an outstanding balance then you can get whatever you reclaim offset against it in this world of virtual money.

[alanalana]

Hello angling man,

 

If you hit problems getting your cash this is the link that may help get some money back.

 

FSCS - Financial Services Compensation Scheme    

 

have a look and put the link in your favourites so it is available if you need it.

 

Best ever fish was 20lb salmon scotland.

 

aa

[angling_man]

I just spoke to FirstPlus and they've confirmed I will receive the full £7,972 PPI premium as cashback next year.

 

AM

 

PS. Best fish is a 19lb 8oz Common Carp.

[alanalana]

Hello angling man,

 

I just spoke to FirstPlus and they've confirmed I will receive the full £7,972 PPI premium as cashback next year.

 

AM

 

PS. Best fish is a 19lb 8oz Common Carp.

 

Remember to post when you get written confirmation and/or your cheque.

 

I would actually suggest you get that in writing now and not accept a phone call as confirmation. Best in black and white methinks;)

 

And well done on a quality Carp.

 

aa