first plus interest rates....

von_s

Hello...i have a query concerning First Plus interest rates on their secured loans which I would be extremely grateful if someone could help me out with:
Took out a loan (to consolidate) of 35k with first plus approx. 3 months ago. Credit agreement says i had a special introductory interest rate for 3 months then was to revert to 8.4% meaning a repayment of just under £400 a month...

had a letter from them last week stating my introductory rate is due to cease and interest rate is to revert back to 12% APR!!?!?

i expected a little shift in light of th e current climate and the fact that the rate was variable but 3.6% seems very excessive...especially as the BOE interest has not changed during this time...

can anyone tell me if this is this actually legal and additionally have any advice for me on how to approach this matter with them??

experience08

von_s wrote: »

Hello...i have a query concerning First Plus interest rates on their secured loans which I would be extremely grateful if someone could help me out with:
Took out a loan (to consolidate) of 35k with first plus approx. 3 months ago. Credit agreement says i had a special introductory interest rate for 3 months then was to revert to 8.4% meaning a repayment of just under £400 a month...

had a letter from them last week stating my introductory rate is due to cease and interest rate is to revert back to 12% APR!!?!?

i expected a little shift in light of th e current climate and the fact that the rate was variable but 3.6% seems very excessive...especially as the BOE interest has not changed during this time...

can anyone tell me if this is this actually legal and additionally have any advice for me on how to approach this matter with them??

first plus is a sub prime lender, they always shaft people this way.

_Andy_

If you take the risk of a variable rate product then you can't complain when they change the rate.

von_s

_Andy_ wrote: »

If you take the risk of a variable rate product then you can't complain when they change the rate.

i can if i haven't even made a single payment at the agreed rate and they raise it 3.6% eh....

legalised fraud...nothing more...like i say i expected a hike but not by that degree before i'd made any payments at their advertised rate....

anyway - does anyone know whether they should have written to me actually informing me of this rate rise as the letter i have merely states that my discounted rate has ended and this reverts back to my agreed rate of 12% etc?? had no letter sayin that the rate has actually been increased....

Paul_Herring

von_s wrote: »

i can if i haven't even made a single payment at the agreed rate and they raise it 3.6% eh....

I'm afraid you can't. You could complain if they removed/changed the promotional rate that was 'guaranteed' but you have no comeback about the non-promotional rate.

legalised fraud...nothing more...

I won't argue about that (well I could about the 'fraud' bit, but not with the sentiment,) but then I think those sorts of loans shouldn't be allowed in the first place:

Carol Vorderman (for it is she!): "Get rid of all your unsecured debt where they can't take your house, and turn it into a lower payment, but for much much much longer, pay us much much much more than you would have originally, and to cap it all, we can even take your house off you if you miss a (few) payment(s). By the way, it's a variable rate so we'll vary it upwards, and never downwards."

What's even more galling, is that now they've stopped selling it, they have even less reason to keep rates low, trapping those who took out loans if they can't repay early.

anyway - does anyone know whether they should have written to me actually informing me of this rate rise as the letter i have merely states that my discounted rate has ended and this reverts back to my agreed rate of 12% etc?? had no letter sayin that the rate has actually been increased....

I rather suspect, that that is what this letter is. Or that's what FD will claim if you start complaining about it.

I'd welcome any correction on this however...

marshallka

You could write to the OFT or the FSA and ask them about extortinate credit.

http://www.oft.gov.uk/news/press/2003/pn_76-03

allowing the courts to consider matters arising after the agreement was entered into, including interest rate variations

Its probably not "extortionate" as such but i would certainly put in complaints and see what options you have.

Also the Citizens Advice may be of help.

von_s

many thanks gentlemen...and ladies of course...

i enjoy a challenge and makin a pain of myself so i'll take your advice and see where it leads....

i'll update you if i manage to get any joy...

thanks again.

CLAPTON

is there anyway you can refinance the loan by extending your mortgage?

although you say you like a challenge do remember that the OFT/FSA etc have taken no action against CC with APRs in the 70% or payday loans with several 1000 % APR

von_s

CLAPTON wrote: »

is there anyway you can refinance the loan by extending your mortgage?

although you say you like a challenge do remember that the OFT/FSA etc have taken no action against CC with APRs in the 70% or payday loans with several 1000 % APR

yeah i'm sure i could....just got myself into a bit of a hole at the time and the first plus loan was the quickest way to get out of it....i'll arrange a meeting with a financial adviser....

any suggestions on that front gents??? used to use a very good guy but have lost touch with him over recent years and think he emigrated....

not overly worried bout the first plus thing to be honest....i can more than afford to pay the increased charges but it's the principle eh....and the fact that i'd imagine there's a loada people out there who've been shafted like this who can't afford the charges....

von_s

UNBELEIVABLE!?!?!

i was all ready for the long haul on this.....

intended to get hold of First Plus today to discuss my issues with em...

got a letter first thing with the first plus logo....i'm thinkin they've probably raised rates again...

no! it's a letter saying they made a mistake and my interest rate should be as previously stated at 8.4%!!!

excellent!!

:beer:

marshallka

von_s wrote: »

UNBELEIVABLE!?!?!

i was all ready for the long haul on this.....

intended to get hold of First Plus today to discuss my issues with em...

got a letter first thing with the first plus logo....i'm thinkin they've probably raised rates again...

no! it's a letter saying they made a mistake and my interest rate should be as previously stated at 8.4%!!!

excellent!!

:beer:

Glad for you....:j