Firstplus £52k secured loan , paid after house sale but £5k extra charges added? - reclaiming?

[Surfer01]

In 2004 we took out a debt consolidation loan from Firstplus for £52000 with repayments of £520 per month for 15 years at an APR 8.9%. This was secured against our home.

 

We kept up the payments but then decided to sell our home and pay off the debt. The home was sold off after 14 months of taking on the debt. At that time there was still an outstanding amount of about £48000.

 

The sale went through and they got paid but then decided that there was still outstanding interest for an amount just over £5000 which took it to more than I had borrowed in the first place. I have repeatedly asked for a full statement showing how they have arrived at this figure but have been fobbed off everytime.

 

The outstanding amount should be spread over the remainder of the 15 years but in their wisdom they have amended it to 5 years but no new contract has been signed. 

 

Are they allowed to do this and can they refuse to supply me with a breakdown showing how they arrive at us still owing them £5000 plus?

 

I really need something legal to thrown at them.

[Guest Lueeze]

They have to provide proof, they cant just say "oi pay it" without showing and explaining this. Did you get a settlement statement when you paid off the £48tho?

 

You know its letter time dont you....

Lou x

[Surfer01]

Although I have repeatedly asked for a breakdown of the charges, they have either ignored my letters or ent me a letter showing the settlement amount. My question is how can the settlement be more than the original amount borrowed despite us paying 14 months instalments.

What sort of letter could I draft to them obliging them to give me a breakdown of costs, interest etc? Are there any regulations obliging them to provide this information?

[Guest Lueeze]

14 months is £7420, so thats extortionate if you end up paying more off the debt!!!!

 

I dont know the Legal points im afraid, mabe a more experience member can help.

 

I would just tell them to shove it personally, and untill they proove the amount owing by a breakdown you will not play ball whatsoever!

[Surfer01]

Thanks. I will draft them a letter requesting a proper breakdown. Ian

[Janet-M]

If they have not complied with your SAR then you can get a court order to force them.There is a LBA letter template in the libary for non compliance with the DPA.This then gives them 7 days.Then start a claim to compel them your claim has to be worded specifically .

[Surfer01]

Last week I eventually got a breakdown of how they arrived at the figure and unfortunately it seems about correct, however I still can't get them to reply why they have decided to shorten the repayment period from 13 years to 5 years and then state that I am in arrrears and it showing up on my credit file as arrears.

I am paying them slightly above the amount required if the repayment was still based on 13 years and not 5 years. I do understand that there will be additional interest but it is to be hoped that once our finances settle we can afford to pay more. In the meantime I do not see why we should pay more than we should.

Is there any way we can forced them to revert back to the 13 years and remove the arrears notcies not defaults on my credit file?

[Surfer01]

After selling our house in Feb 2006 we were left with an outstanding balance of £6000 on the second loan taken out on it. The remainder of the original loan period was approximately 13 years. Firstplus in their wisdom then reduced the term to 5 years with monthly repaymenst of £130. We did not sign any amendment to the original contract or any new contract.

We then requested Firstplus to give us a breakdown of how they arrived at the figure of £6000. We chased them on this for nearly 5 months before we received a proper statement reflecting the outstanding amount. In the meantime they get chasing us for money and we made some token payments of about £20 per month.

We also requested them to demonstrate to us that the original terms had been amended or a new contract signed but obviously they were not able to do this. Eventually last week they sent us an amendment document for us to sign for the remainder of the term and at lower payments which we could afford. We signed it and sent it off. On Friday last we received notification that they had handed us over to a DCA to recover arrears of £502 for instalments missed while we were trying to get the issue resolve.

As there was no amendment or new contract in place can they do this? This whole issue arose because of their incompetence and one department not knowing what the other department is doing.

In August we requested a copy of any amended documents etc quoting the various sections and advising that they had to reply within several days which obviouskly they did not and by doing so they may have commited a criminal offence under the CCA.

We cannot afford to pay them and a DCA at this stage and anyway I don't think the arrears is legal as the arrears would never have accummalated if they had responded within a reasonable time period and stuck with the original term of the loan contract. Considering they were paid a lump sum of £48000 in February 2006 I don't think we should be in arrears anyway.

The floor is now open to your opinions and help. Thanks.

[Surfer01]

Any one?

[Surfer01]

We had a Firstplus consolidation loan and when we sold the house in 2006, we paid the outstanding mortage and most of the Firstplus loan as there was not enough money to go around. This left just under £6000 made up entirely of interest charges to pay off and a monthly amount of approximately £65 was agreed.

I then set up a standing order paying a few pounds more than required. At the beginning of this year we increased our payments to £80 per month.

Last month we received a cheque from Firsplus for £126 stating that we had overpaid on the account. I thought this was strange as there was no ways we could have paid off the £6000 in 36 months.

As per normal the £80 was paid by standing order out of my account on Monday the 01/09/09. On Tuesday I received a call from them stating that I had not paid and was in arrears. Huh! Basically told them to go to hell and if they were desperate we could discuss it in court,

Today I received a threatening letter advising if I did not pay immediately my house could be repossesed. We are living in a council flat and they know that we do not own any property.

On phoning them I was told it was because I was in arrears and could I make a payment immediately. I then pointed out that they had sent me a cheque for £126 stating that I had overpaid Firstplus. I was then told I was not allowed to pay extra and had to stick to the lower amount and also pay it on the same day because if I paid it earlier, i.e. if they had not refunded the £126 it would change the interest payable.

Since when can't you pay extra to help clear a debt quicker. I also mentioned that if they had not sent the cheque I would not be in arrears so effective through their actions they have put me in "arrears. Can any one please advsie on these and whether they can refuse payment for an amount higher than agreed? Can i escalate thsi to FOS as Firstplus refsue to put thsi in writing that you can't overpay.

They state that for a standing order payment to be received by them can take up to 10 days. I find this hard to believe. Can any one throw some light on this? Thanks.

[reallymadwoman]

I would write to them by recorded delivery outlining the problem and asking for their response in writing. Head the letter 'Compliant'.

 

So far as I am aware they are being absolutely ridiculous, and you could certainly complain to the FOS if they don't respond within the required 8 weeks. In the meantime, would it be worth an SAR in case there's charges etc that you can reclaim?

[Surfer01]

Thanks. Sorry for the delay in responding but been away. Despite requesting them by telephone not to contact me during working hours they persist in doing so. I have also asked them to send their request in writing to me and they refuse to do so. A statement only shows two charges of £27.50 for each returned DD. Got whammy by the bank also for the same amount.

I am now composing a letter to them for some clarification. The original loan amount was for £53300 with monthly payments of £527.74 starting on 01/12/04 over 180 months at 8.9%. We then sold the residence in February 2006 and a payment of £48411.79 was made and the secure charge on the property was removed.

This left a residual balance of £5773.64 payable at approximatley £68 per month over the remaining term of the loan. The residual amount is made up of interest charges on the original amount and about £200 in other charges which include the £55 for the returned DDs. This has been paid at £80 per month for the last year and they then refunded the difference. What I do not know is whether the difference reduced the interest amount while they had the £126 or whether they have simply ignored it.

For the residual balance I had to sign a "modification agrement" as the loan was no longer a secure loan however I am not aware whether the original terms and conditions still apply. They will not answerr this in writing or on the phone when I ask them. I get the impression that they are rather evasive on certian questions or they are not trained properly.

In my letter I am asking them the following;

 

a) Why can’t we pay more than the stipulated amount

b) Why can’t we pay by standing order

c) Why did Firstplus send us a refund implying that we had paid too much thus

indicating that the agreement was now completed and paid up to date

d) Why Firstplus think we are in arrears when they send us a refund stating we

had paid too much

 

Also why are they harrasing me almost on a daily basis to pay by DD and I will be quoting the Harrasment Act to them.

 

I would really appreciate any other input as these people are getting on my nerves and it is not as if I am in arrears or refusing to pay the account. Thanks.

[Surfer01]

I have sent off the letter but they have been phoning me every day for the past two weeks including phoning on a Saturday night at 8:30 pm and again on a Sunday afternoon. As I have no arrears with them at all, I would not like to take this to the next step in the Harassment Act. Do I provide the police with a list of all calls from Firstplus or do I now contact the FOS? Perhaps I can ask for compensation for all the unnecessary stress that they are causing me thus reducing what I owe them. Constant calls from rude arrogant staff are now getting very annoying especially as we both have elderly parents who are constanly under some sort of medical treatment and when the phone rings at 8:30 pm on a Saturday night you always fear the worst!

[Surfer01]

If you request a company in writing to stop harrassing you under the The Harrassment Act 1998 and they do not comply, what is the next step yopu can take? Thanks.

[42man]

Make sure you log, ALL the times and dates they call you, am I correct in saying that you have sent them the 'harrassment' letter ?

[Surfer01]

They got it and sent a letter back stating that the harrassment will ceased but that has not happened. I have now raised the issue with the FOS.

[steven4064]

pesonally I wouldn't bother with the FOS - complete waste of space

[Surfer01]

pesonally I wouldn't bother with the FOS - complete waste of space

 

What would you suggest to get the issue resolved? Thanks.

[steven4064]

I would threaten to take them to court under the Protection from Harassment Act 1997 and then actually do it if the threat didn't do the trick

[Surfer01]

They ignore threats like water off a duck's back. I need to progress this harrassment issue with or without the FOS but I am not sure where to take it next which is why I am hoping a banana will be able to steer me in the right direction. Do I need a solicitor or cna it be done through the small claims court as the harrassment has caused me a lot of stress and I need to be compensated etc. I just want them off my back as I have never been in arrears with this account as all payments are up to date.

[steven4064]

You can do it yourself

[Surfer01]

You can do it yourself

Excuse my ignorance but what can I do myself as I am not that familar with the law.

[MARTIN3030]

You should have had some contact from site team-Have you checked your PM box ?

[Surfer01]

It is Sunday and at 18:15 hours these morons phoned me. They are now phoning twice a day for arrears of about £45 which is arrears they created as I have not missed a payment in the last two or three years. I want to prosecute Firstplus in court. As I am unemployed due to redundancy, will I be entitled to legal aid?

[steven4064]

Surfer - you have mail