1st Plus PPI Refund Help

[makkapakka69]

In need of some advice on this.

 

I had a successful PPI reclaim from 1st Plus a couple of years ago, without the need of the FOS. I thought everything had gone fine and received the rebate. This was made up of:

 

1) Full refund of original ppi premium credited to loan account.

2) Interest paid on ppi part of monthly repayment refunded and credited to loan account.

3) Overpayments of monthly premiums already paid refunded to me by cheque.

 

All good so far, however, I have recently received information from 1st Plus after sending them a SAR request. Along with a mountain of paperwork, they have sent me statements of the balance of the account at the time the ppi was refunded.

 

According to these statements, the original refund was credited to the account, as was the refund of interest. However, the amount that was refunded to me by cheque was added back onto the account. This was approx £3,200.

 

What I want to know is is this correct? Does this figure have to be put back onto the loan? In their letters at the time, they state that I was put back into the position of not taking out the ppi, but how can this be the case when they have given me something with one hand and taken it back with the other?

 

After over 4 and a half years repaying this loan which was for £57,000, and with monthly repayments of at least £570 per month (with ppi removed from monthly repayment) the balance is still at £54,000!!! If the £3,200 hadn't been added back onto the account, the balance would be £50,800.

 

I've only questioned this now because they refuse to lower their interest rate on the loan which is currently at 12% and I'm looking at the possibility of the whole loan being missold.

 

Any advice on this would be really appreciated.

 

MP.

[makkapakka69]

Bumping this up guys!

 

Basically what I need to know is can 1st Plus issue me with a refund cheque for overpayments with one hand, and then add this amount back onto the balance of the loan account with the other?

 

MP.

[makkapakka69]

Anyone??????

[alanalana]

In need of some advice on this.

 

I had a successful PPI reclaim from 1st Plus a couple of years ago, without the need of the FOS. I thought everything had gone fine and received the rebate. This was made up of:

 

1) Full refund of original ppi premium credited to loan account.

2) Interest paid on ppi part of monthly repayment refunded and credited to loan account.

3) Overpayments of monthly premiums already paid refunded to me by cheque.

 

All good so far, however, I have recently received information from 1st Plus after sending them a SAR request. Along with a mountain of paperwork, they have sent me statements of the balance of the account at the time the ppi was refunded.

 

According to these statements, the original refund was credited to the account, as was the refund of interest. However, the amount that was refunded to me by cheque was added back onto the account. This was approx £3,200.

 

What I want to know is is this correct? Does this figure have to be put back onto the loan? In their letters at the time, they state that I was put back into the position of not taking out the ppi, but how can this be the case when they have given me something with one hand and taken it back with the other?

 

After over 4 and a half years repaying this loan which was for £57,000, and with monthly repayments of at least £570 per month (with ppi removed from monthly repayment) the balance is still at £54,000!!! If the £3,200 hadn't been added back onto the account, the balance would be £50,800.

 

I've only questioned this now because they refuse to lower their interest rate on the loan which is currently at 12% and I'm looking at the possibility of the whole loan being missold.

 

Any advice on this would be really appreciated.

 

MP.

 

If you reclaim mis-sold PPI and you are successful any rebate of PPI can as I understand it be used to offset any outstanding debt on the account. I would be inclined to check again on the PPi repayments on your loan to ensure everything is above board.

 

aa

[makkapakka69]

Thats the point. They haven't offset it against the debt. They have added it onto the debt!

 

Quick example:

 

Account balance before ppi reclaim = £67,000

 

Original ppi amount @ £11,500 reclaimed and credited to account. Account balance now = £56,500

 

Interest charged on mis-sold ppi @ £2,800 credited to account. Account balance now = £53,700

 

Monthly repayments restructured and ppi element removed. Previous ppi overpayments already made @ £3,200 refunded to me by personal cheque.

 

Same £3,200 charged back onto loan account. Account balance now = £56,900

 

This was 2 years ago and only came to light through recent SAR request.

 

Original loan for £57,000 taken out over 4 and a half years ago. Balance now = £54,000 with over £25,000 already paid back in monthly instalments!

 

1st Plus claim nothing wrong and all above board!:confused:

 

MP.

[makkapakka69]

Update on this:

 

This matter is now being investigated by the FOS - has been for months now.

 

Current balance of loan now stands at £52,500, meaning that if FP figures are correct, we have only repaid £4,500 in over 6 years of repayments - with each monthly payment being at least £570!!!

 

Work out what we have paid them in return!!!!!!!!!!!!!!

[makkapakka69]

Received letter confirming case finally passed to Ombudsman team for final decision, but depending on the complexities of the case, could take up to a year to reach a decision.

 

Have been reading up on the rule or 78 regarding interest and settlement figures. If our loan was for an initial £57,000 and we now still owe £52,500 after nearly 6 and a half years worth of payments, is it plausible that FP have used the 78 rule to calculate the settlement figure.

 

MP.

[makkapakka69]

Could anyone suggest approx what a settlement figure for a loan of £57,000 would be after 6 and a half years into a 22 year term?

 

Does £52,500 sound like the rule of 78 has been used?

 

Cheers!

 

MP.