First Plus PPI loan

[barloo69]

Ok, am after some help here please. I have trawled the forums from cover to cover and cant seem to find the definitive answer I require.

 

I am trying to help sort out a claim for a family friend. He was going to deal with one of those SPAM PPI reclaim companies as after reviewing his personal circumstances, he was clearly MISSOLD this policy.

 

I told him we can do for nothing with help from the forums. At first I thought it was simply a case of taking the amount of PPI amount that was front loaded and applying a 8% charge for the reclaim, but the more I read, the more detail and complex it seems to be getting ( am I wrong ?)

 

He took out a loan with First Plus back in 2007 which had PPI as a single premium added to it. To date the loan and PPI is still in effect.

 

I have ascertained that the proportion of his monthly payment equates to 16.6% of his monthly payment, and have calculated what amount each of his monthly payments was for PPI. (made easy by the spreadsheet, thank you BTW)

 

So if I got it correct, I have added all these amounts together (well the spreadsheet has, excellent bit of kit) and got a total amount of charges plus an interest amount for the reclaim.

 

Now this is where Im getting a bit confused with reading too many others post I think , but what Im not grasping is what do I do about the remainder of the payments.

 

The loan was for a period of 7 years and has 2 years remaining. The PPI was front loaded at the beginning and so will have had interest added to it for the entirety of the loan. So wont technically speaking the remaining of the 2 years payments have an amount of PPI still included within it.

 

Or is this something that First Plus address and recalculate the loan and payments to a position they would have been had he not taken out the PPI in the first place. So in effect reduce the monthly payments accordingly for the remainder of the term.

 

(Not sure but have I just answered my own questioned?)

 

Any guidance, gratefully received.

 

Oh didnt there used to be a template letter library on CAG, not that its hard to churn out a letter I suppose.

[ims21]

Hi

 

You have answered your own question.

 

The remainder of the two years will (or should) be treated as a restructure of the loan to remove the remaining PPI and associated intrest from the equation. Thus the loan will either be shortened of the repayments stay the same, or the term will stay the same but the repayments drop a little.

 

You've done your spreadie, all you need now is the fos questionnaire (available from the fos website) and a brief letter to the lender enclosing said questionnaire duly completed and a copy of the spresadie.

 

Then sit back and wait as they have 12 weeks to investigate and give a final decision.

 

Regards

 

ims

[barloo69]

Splendid. thank you.

[ims21]

[SharpmanTF1]

I rang first plus to enquire about statements, I told them that I was looking to claim mis sold PPI. They asked a couple of questions - 'i was not told that the ppi would only last 5 years and that i would be still paying for it even though it was finished.' a week later I had a letter in post stating they would look into it and would get back in 12 weeks. Got a letter back a week or so ago ' Ok, we hold up our hands - take the money' there calculations came out better than mine slightly. but as I had the premium repaid after the five years I'm not going to get what I was hoping. and if I take the money they would basicaly recalculate with the premium put back on and my payments would go up. ( not by much, but still would go up)

[barloo69]

WOW !!! really ? thst doesnt make much sense.