Got My Info From First Plus - Can I claim?

[rkm123]

Hi. I sent of for all the info First Plus had on our loan and now got it back.

 

We took a loan and 13 months later requested another 5k. This was refused but in the call the FP person said we could consolidate what we had and if we paid off the two credit cards we had with this new loan then she gcould give us a cheque for the 5k that we wanted.

 

My gripe is with the PPI which I didnt know we had but evidently from the transcripts my Husband agreed to. I have typed out the transcript of the relavant part of the call and would be grateful for some guidance on whether you think we have a case for mis-selling.. can I put the transcript here for someone to have a look at? Thanks in advance

[pompeyfaith]

Sure post it up but do not post anything personal to you both,

 

You can check this thread which is useful and gives many grounds for mis-selling:

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/61081-ppi-some-notes-claimants.html

 

Regards

 

Pompeyfaith

[rkm123]

The red are my husbands replies.

 

FP.The questions I need to ask you relate to Insurance policies that you may or may not have. Separate to what cover you may have with us already and separate to what cover you may have on your mortgage so I just need you to forget about that for a moment.

 

1) If you were out of work due to an accident do you pay into any separate Insurance on a monthly basis that would repay the loan to First Plus. No

2) anything for Sickness . No

3) anything for unemployment . No

4) Do you have any separate life cover that would repay the loan in full to First Plus... I don't know the answer to that.. FP Don't know, no thats ok, thats fine

5) Do you get death inservice from your current Employer - yes

6) and if you were off ill would they pay you - Yes - FP How long would they pay you for - 6mth Full & 6 mths half pay - FP Brilliant, great

7) and lastly do you have any other financial arrangements like savings plans or policies in place that again if anything was to happen you would be able to repay the loan in full to First Plus - No

Ok I can recommend based on the information that you have provided that First Plus payment protection could assis you with repaying your borrowing ok. In making this recommendation ive not taken into consideration to details of any other existing insurance policies or arrangements you have so this insurance may duplicate your cover in certain areas. ok now a copy of the answers to these questions will be sent to you.

 

Ok as I said what we would need to do is clear the credit cards and I can give you the five thousand that would be doing a loan of ****for you cards and put the loan over a term of 15 years purely so it will fit within our criteria and that repayment wil be ***, is that alright for you Husband yes it would reduce outgoings

What I need to do now is just explain the costs involved for the loan of **** and the optional payment protection premium ok?

So as I said the total monthly repayment will be ****, I will break that down for you

Payment for the loan is £***

Payment protection is £***giving you that total monthly repayment of **** payable for 180 months. It includes insurance premium tax at the current rate. Are you happy with my recommendation that you take out the Payment Protection Premium Husband yep - FP Brilliant ok - what I will do then is pop these documents out in the post for you.

(This next bit is said really fast) Ok before I send the documents I just need to run you through the insurance very quickly, ok so that you are fully aware of what Im doing ok. So you have applied for First Plus payment protection that could protect your payment in accident sickness involuntary unemployment, hospitalisation or death. It does not cover any medical condition that you know about at the start of your policy or saw a doctor about in the 12 months immed before the start of the cover, involuntary unemployment that you knew about before or occurs in the 60 days before the start of the cover. The cover lasts for the first five years of your loan and after this if you keep within the loan T& C and not made a successful insurance claim you can claim a cash back refund of the whole premium from FP. However if you settle your loan or cancel your insurance before the end of the 5 yr term you will not get a full cash back refund, the amount will not be proportional, it will be significantly reduced and will not include a refund of the interest paid on the premium, examples of the amounts that you would get back if you settled early would be advised in the documentation. The cost of the policy is added to the loan amount however our loans are not dependant on you taking any insurance offered.

 

Now I didnt know about this premium until I pulled the paperwork out a couple of weeks ago. Husband was horrified and obviously hadnt taken in what she was saying.

 

This is what Ive managed to think of for a claim:

 

I do not believe that our policy was sold in our best interests

At no point was is it clearly stated that the lump sum for the protection was added to the loan up front

At no point were we clearly informed that this lump sum added to our initial loan would accrue interest over the whole period of the loan

I was told I can claim back 'a cash back refund of the whole premium from FP' - there is no mention of the interest charged or it being included in this 'refund'

This policy only covers for 5 years of the 15 year term even though we are paying premiums for the full 15 years

This policy only pays a claim for 1 year - this would leave us not covered for the remainder of the policy even though we are still paying monthly premiums for the full 15 years

*** receives 6/12 full pay and 6/12 half pay if he is off work ill

*** has sufficient cover from work to pay this loan if he dies in service

*** and *** have independant life insurance policies and had life insurance policies at the time this loan was taken

This policy covers both ***and ***. At no point were any questions asked as to the employment status of ***who was and is still self employed - this means that ***is not covered under some of the terms of the policy which was not pointed out when the policy was taken

We were not told that alternatives were available from other Companies to cover us for this loan

We were made to feel in the call as if the loan was dependant upon us taking this policy - as if it we all part and parcel of the loan procedures

 

Do you think I have a chance?

[pompeyfaith]

Hiya rkm123 Yes you have loads of gounds for being mis-sold the main ones being:

 

This policy only covers for 5 years of the 15 year term even though we are paying premiums for the full 15 years

 

At no point was is it clearly stated that the lump sum for the protection was added to the loan up front

 

At no point were we clearly informed that this lump sum added to our initial loan would accrue interest over the whole period of the loan

 

This policy covers both ***and ***. At no point were any questions asked as to the employment status of ***who was and is still self employed - this means that ***is not covered under some of the terms of the policy which was not pointed out when the policy was taken

 

Go get them

 

Regards

 

Pompeyfaith

 

 

[rkm123]

Thank you, I think I just needed a little reassurance. Rkm x

[varda]

Your claim with Firstplus is similar to mine. I was given full cover but get paid from work for sickness for 12 months, good redundancy package, death in service, etc. We were not questioned about my husbands circumstances but he gets none of these benefits from work. He was given life cover only. The conversation sounds very much the same as mine. Mis sold for all the same reasons. I have been refused a refund follwoing my first letter. I have today responded and am waiting to see where this will go next.

Good luck keep us posted.

[rkm123]

Hi. Im back with a reply from First Plus.

 

They have disputed every one of my reasons for being mis sold my payment protection.

 

I'm not sure whether I am supposed to write back to them or do I go to the Financial Services Ombudsman next?

 

Advice would be very welcome

[pubman1]

On my initail refuseal letter they said that they would keep th e complaint open for 8 weeks if I disagreed with any of their findings. I have written back to them saying that I disagree with ALL of their findings. I did not do a SAR before but have also done that now too. It seems that there are at least four of us at a similar stage with F+ and with almost identical claims - you, myself, Varda and candycane. Lets keep in touch and see how we get on.

Edited March 17, 2009 by pubman1

[pompeyfaith]

Time

[pompeyfaith]

Time for the LBA if you are getting the run around

 

Send another letting them know you disagree with their findings explane why you disagree and head the letter

 

LETTER BEFORE ACTION

Font size 14 should do the trick.

 

At least then they know that you will take no more fob offs

 

If you still get no favourable answer at least you can then take the complaint to the FOS as they have been warned.

 

Regards

 

PF

[candycane]

Have not yet recieved a reply as only sent it off on monday...wonder what they will say ?

How long did you guys have to wait for your first reply ?

Will let you know as soon as i get anything.

[varda]

Hi Candycane

 

Her is a summary a my complaint against Firstplus I sent my complaint form off to the FOS on Monday 16/3/09. Hope this gives you some idea of what to expect from them. Good luck and yes I agree with Pubman let's keep in touch.

 

31/10/08 – Subject Access Request to Firstplus.

17/11/08 – Firstplus response to SAR’s request, various items of paperwork and a CD with telephone recordings from the time of sale of the loan and PPI. 1 recording is obviously missing.

21/11/08- 1st formal complaint letter to Firstplus.

29/11/08- Firstplus response looking into concerns full response buy 19/12/08.

24/12/08-Firstplus progress report of investigations unable to trace & download the telephone conversatiosn (they had apparently already supplied the same to us). Will contact again by 21/1/09.

9/1/09- Firstplus response unable to agree the policy was mis-sold.

5/2/09- 2nd formal letter of complaint to Firstplus with a number of questions that required an answer.

12/2/09-Firstplus response comments, our comments noted a full response will be provided by 24/2/09.

16/2/09- Firstplus response the complaint has been passed to a senior manager and a full response will be provided by 2/3/09.

19/2/09- Firstplus response, no answers to our questions, willing to reach an agreement, made an offer of settlement, No admission of liability. This should be viewed as their final response.

26/2/09- 3rd Letter of complaint to Firstplus refusing their offer, requesting return of £xxxx in PPI premiums together with £xxxx interest added to these premiums totalling £xxxx. A final request that they confirm the PPI element of our loan is cancelled. Requesting a full response to our previous letters.

3/3/09 – Final response from Firstplus does not answer any of our questions. They claim they did provide all telephone recordings for our account.

[rkm123]

Hi, I am back again.

 

I wrote back to FP asking them to reconsider my complaint. Whilst they claim no liability, I have today had an offer of settlement if I cancel the cover, I don't find this offer acceptable.

 

Do I now write back to First Plus refusing their offer or do I just go straight to the Ombudsman.

 

Thanks in advance

[varda]

Does the letter state that this is their final response if so then take your complaint to the FOS. If not write back refusing their offer and repeat your reasons and request a full refund etc. They will then write back with their final response of no, then go to the FOS.

[rkm123]

Hi, thanks for your reply. Yes it does say its their final response so I will go to FOS.

 

I just don't feel what they have offered is enough.

 

Will be back when I have news.

[alanalana]

Hello rkm,

 

Hi, I am back again.

 

I wrote back to FP asking them to reconsider my complaint. Whilst they claim no liability, I have today had an offer of settlement if I cancel the cover, I don't find this offer acceptable. (If your OH has 6 months full pay and 6 months half pay then I would cancel the cover you will be able to obtain much cheaper cover online if it is really needed )

 

Most PPI will only cover a 12 month period of sickness anyway and only with a fight and the cover in some cases is insufficient to cover the PPI payments and in a lot of cases they will find exclusions to prevent you submitting a claim. AND THAT IS HOW GOOD PPI IS:eek:

 

Do I now write back to First Plus refusing their offer or do I just go straight to the Ombudsman.

 

Thanks in advance

 

If as you say it is their final offer then yes the FOS is the way ahead it will take a long time and the FOS will insist on a positive adjudication against the bank that any existing PPI policy is cancelled. (make sure you have cover when you cancel)

 

If the FOS do not uphold your claim which would be unlikely given the information you have supplied then you still have the option of Court action.

 

aa

[davidg007]

Hi, thanks for your reply. Yes it does say its their final response so I will go to FOS.

 

I just don't feel what they have offered is enough.

 

Will be back when I have news.

 

 

Hi rkm

 

Was your offer 78% enhanced?...if it was, tell them were to stick their offer, i'm in the same boat has varda, refused this offer and gone to the fos....it will take along time this way because they have a back log of complaints but hopefully with your points, worth it in the long run....good luck.

[varda]

Just picking up on Alanalana's comments. As I have lodged my complaint against Firstplus with the FOS after refusing their 78% settlement offer should I also insist that the PPI is cancelled. All of the letters that I have sent to them requested that the PPI be cancelled but they have failed to cancel it. I am therefore still forking out for it each month.

[alanalana]

With apologies to rkm for the temporary hijack,

 

Just picking up on Alanalana's comments. As I have lodged my complaint against Firstplus with the FOS after refusing their 78% settlement offer should I also insist that the PPI is cancelled. All of the letters that I have sent to them requested that the PPI be cancelled but they have failed to cancel it. I am therefore still forking out for it each month.

 

If you have alternative cover for sickness and illness etc then yes cancel and insist on confirmation of it being cancelled in writing. Mention that the FOS will insist on cancellation of any existing PPI before settlement of the Complaint. Better do it now. I had already cancelled PPI before going to the Ombudsman. But Please make sure you have adequate cover to pay the loan payments should you have need to.

 

aa

[davidg007]

With apologies to rkm for the temporary hijack,

 

 

 

If you have alternative cover for sickness and illness etc then yes cancel and insist on confirmation of it being cancelled in writing. Mention that the FOS will insist on cancellation of any existing PPI before settlement of the Complaint. Better do it now. I had already cancelled PPI before going to the Ombudsman. But Please make sure you have adequate cover to pay the loan payments should you have need to.

 

aa

 

mmmm...me myself varda keep it going, if you lose at least you'll get back your lump sum...if you cancel now you'll lose all that dolly and still paying interest on what you have already paid for the rest of the term.....

[varda]

To late, I have already sent the letter off requesting they cancel the PPI and reduce my payments accordingly. I hope I have done the right thing here, we are 22 months into the loan with the promise that we get £14k back after 5 years if we have not made a claim.

I am the one that they have given all the cover to and I have adequate cover with my employer. My husband has life only cover with them and no cover with his employer. It is his job that is not to safe at the moment but the PPI would be of no help to us if the worst happens.

Fingers crossed.

[varda]

I had a call from Firstplus today Customer Services Dept. They waned to check that I wanted to cancel the PPI as it was a single premium policy. He explained that the monthly payment would only reduce between £5 & £10 per month. The PPI is actually £134 per month. I decided to go with davidg007 advice and leave it be for the time being. Did I do the right thing?

[davidg007]

I had a call from Firstplus today Customer Services Dept. They waned to check that I wanted to cancel the PPI as it was a single premium policy. He explained that the monthly payment would only reduce between £5 & £10 per month. The PPI is actually £134 per month. I decided to go with davidg007 advice and leave it be for the time being. Did I do the right thing?

 

Trust me varda you did the right thing....if you should lose which i doubt, at least you will get your lump sum at the end of the five years, if you still have any doubts join first plus complaints and they will advise you to keep it going, good luck and keep up the fight...

[alanalana]

mmmm...me myself varda keep it going, if you lose at least you'll get back your lump sum.. (If you lose - unlikely as 90% of claims are being upheld by the Ombudsman) .if you cancel now you'll lose all that dolly and still paying interest on what you have already paid for the rest of the term.....

 

Trust me varda you did the right thing....if you should lose which i doubt, (if you should lose which is doubted ) IMO this is showing you that you should claim, a loss is doubted and for your lump sum how much more will you be paying and exactly what cover will you have? at least you will get your lump sum at the end of the five years, if you still have any doubts join first plus complaints (is this a sales pitch for first plus) and they will advise you to keep it going, of course they will it is money in their pockets and if youd decide to claim you can bet there will be sound exclusions to prevent you from making a claim good luck and keep up the fight...

 

Actually if you go to the FOS to make a claim they will insist the PPI is cancelled before you can accept any settlement first plus offer through the FOS.

 

The PPI payments will reduce by the required amount after the FOS involvement. I had a similar problem with the RBS I cancelled PPI and the monthly payments did not reduce by the amount I expected namely the monthly PPI repayment figure it was short by a few pounds. The RBS came up with an argument that put them in the driving seat and stated that the PPI could not be reduced by the full amount because of the PPI and loan formulas,

 

The Fos put paid to that and after I got my £10k + refund my payments were further revised to show no PPI payments and I received a refund of the difference from when I cancelled to when the PPI claim was settled.

 

Please read my thread as shown at signature box at the bottom of this post.

 

You should of course consider everything very carefully before committing even from the advice on cag be sure you are happy with your eventual decision whichever way you go. Only you can consider the advice and act but remember to seek legal advice in all cases where you need professional assistance.

 

aa

[davidg007]

hi alanalana

 

trust me theres no sales pitch, i hate firstplop with a passion, i currently claiming for mis-sell through fos and at no point have they asked me to cancel my policy with firstkak and why would they, it doesnt make sense to, what if you lost your claim!! you would lose your cashback, 10% chance, in fact first plus wants me to cancel my policy so i will go away, not going to happen, me and many others wont be happy till we bury these highwaymen for good... i spoke to other winners and they never cancelled right up till they got their claim upheld, loan put back to what it would have been as if ppi had never been taken out, then refunded all payments to date and interest of 8%,as for first plus complaints they are a group, formed together of angry mis-sold customers which deal with solely first plus, but like alanalana say's Varda the decision is up to you, good luck.

Edited May 7, 2009 by davidg007