first plus payment protection

KAYBELLE · 4 April 2007 at 7:38PM

last year in sheer desperation me and hubby had a £50k loan from First plus. We chose them as they said they were part of Barclays and Carol Vorderman was doing the avderts on tv so we thought they were a reputable comany.
I have recently asked for a settlement figure on the £50k which came in the post as being £62k. We were stunned as we have paid £6k in repayments over the past 12 months.
We were told that the payment protection we took out was for £12k over 5 years and we would only be refunded a pro rata figure of £2500. This will mean we have paid over £6k in repayments and £9k for 12 months payment protection.
We have no idea what to do, we have checked the paper work and it does say a pro rata rate but we thought it would be for 12months of payment protection use.
If anyone can help us please advise as we are so worried about this. We know we should have not gone with them but hindsight is a wonderful thing and we were trying to keep out home as my elderly parents live with us.

AMILLIONDOLLARS · 10 April 2007 at 11:23AM

Kaybelle

So sorry to hear about your situation with First Plus, unfortunately, you are not alone regarding this, if you do a seach under First Plus there are several on this topic. Unfortunately, there is not much that can be done, you could look about cancelling the payment protection part of the loan to save yourselves some money, but I believe that this would entail possibly rescheduling the loan and having to go through another credit search etc. First plus always front load the interest and the payment protection part it always paid off first before you actually make any inroad into the actual some borrowed. I am afraid its not looking good at the moment. Anyway do a search and I am sure other suggestions may have been highlighted.

Also why don't you pop over to the Debt Free Wannabe Board, sound like you are in trouble trying to make the repayments, the folks over there are very good with budget advice and how to reduce you loans/commitments quickly you are sure to get lot and lots of very good advice.

Good luck
AMD

nomoneytoday · 10 April 2007 at 1:07PM

You had a contract to pay First Plus £500 per month + ppi for a long term loan.

As you are cancelling this contract F+ are simply giving a settlement figure which rebates some of this interest, in line with standard rules.

These rules change at the end of May for older loans

Rafter · 10 April 2007 at 3:45PM

Kaybelle,

You have been the victim of 'single premium' payment protection insurance which may hopefully be outlawed as part of the review the office of fair trading is conducting.

Is there any way you could have been missold the insurance? Were you told it was compulsory to get the loan, were you pressured into buying it? Do you have any existing or family medical conditions that would render it invalid? Was one of you self employed and therefore not covered?

If not all I can recommend is that you kick up a stink with First Plus, make a formal complaint, if you don't get a satisfactory response get the ombudsman involved, inform the daily mail and see if they will improve their offer - you never know.

R.

KAYBELLE · 13 April 2007 at 7:52PM

I'm going to complain to Firstplus and advise them that we were mislead with the details of the ppi. Hopefully we may get somewhere.

If the rules do change in May will we be included does anyone know?

Thanks
K

Moneymatters_2 · 7 May 2007 at 11:09PM

Hi Kaybelle,

Just wondered how you were getting on with First Plus. We are in exactly the same situation. Been to citizens advice and they suggested seeking legal advice but since we are already in debt we simply cannot afford it. Not sure what to do next?

first plus payment protection

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