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Secured Loans & Variable Interest Rates

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  • My son has the same problem with interest rate problem with regards to a secured loan from GE Finance. But he has now been contacted by a company www.moneyaidltd.com who say that they can get the loan written off on the basis of it being mis-sold. But there is an upfront fee to pay £230 but if their solicitors cannot find anything the original contract, £190 is refunded. Has anyone else heard of this?

    I haven't heard of these but if your son decides to try it out, I'd be interested to know the result. :xmassmile:xmassmile
  • CHR15
    CHR15 Posts: 5,193 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    But there is an upfront fee to pay £230 but if their solicitors cannot find anything the original contract, £190 is refunded. Has anyone else heard of this?

    I can beat their rate. Send me a cheque for £230 and I will send you one back for £200 for doing nothing. I can do nowt for £10 less than those vultures.

    Seriously!!... do you really think anyone contacting YOU is out to do you a favour??
  • We know they are not doing us a favour and the £40 is an admin fee. Think we are going to give it a go. GE finance have increased there rate from 10.428 when he took out the loan originally to 14.228 and they have nobody to govern their rate increases, seems to me they can do what they like. I have asked for a copy of my sons original contract on three occasions and still not received it. I had to make several calls before I got a copy of his statement which had monies charged and he had never been informed off.
  • halifax71 wrote: »
    To go with First Plus in the first instance indicate sub prime borrowing to me - the only way to get out of this is to repay what you owe. Thanks for that

    The thing is i would happily pay the "agreed" amount - however that amount has increased despite lower bank lending rates. That is the point that wasn't explained at the point of sale. They are taking advantage of the deteriorating LTV rates, safe in the knowledge that people can't shift the loan, making significantly more profit than was first expected.

    Anyone who tries to defend such activity is a moron - and i include you in that statement MUFC :mad:

    Hopefully i'll be able to shift the loan soon as i'm not in negative equity (yet), however others maybe stuck.

    Now i am going to follow Reddh Legend's example and write to FP and then take it further - and i would urge others to do the same. Be warned that once interest rates go up in the next 2-5 years that all of a sudden bank lending rates will be the basis of the FP SVR and we'll all be in trouble.
    Thanks for that.
    It's not me who borrowed from First Plus is it though and I'm willing to bet with you that you will not be able to remortgage.
  • Chris thanks for the comments. However, you and I know the reality of the situation. As of now, my FP loan 5 yrs in had a day one loan of £35k, PPI of £6900 and a settlement figure today of £49000. The current climate means my house is worth less than it was when I took the loan out and therefore, irrespective of my credit file, like the majority of FP customers, would be unable to get out of my loan unless someone gave me cash resources to do so. The fear is now that they well and truly know this. Yes the £35k was a saving grace, the PPI meaningless and currently going thru mis-sell claim. The whole point that many are missing is that, "variable" is a risk, it can go up as well as down - I work in business finance so I have seen it work in practise, it is mechanical and clear. The point is they did not at point of sale indicate just how they would manipulate and use unfairly the term "variable" for their own gain. If you buy something and through use of the produce realise it does not work in the way you expected it to then you have every right to revisit the sales process and question whether you were mislead, mis informed, missold and challenge it if you feel you have a case.

    I feel as though I do and will challenge it. Whether I will be successful is out of my hands but what I have witnessed over this and other sites is that FP will look to get away with what they can in offers of resolution. I was told something "was not possible" regarding a previous complaint, only to find out they had given that "impossible" solution to other customers.

    I am increasingly worried about where my loan will go ratewise and want answers now.
  • Please go to the link below and sign the petition:

    http://www.ipetitions.com/petition/FirstplusInterestRates/
    Need 5000 signatures in order to submit to FSA, Government and Barclays.
  • WOW has anyone seen the new Firstplus customers website - it is awesome!!!
    http://www.firstpluscomplaints.co.uk
    Check it out and sign up TODAY
  • The site you mention is less than 24hrs old with only 8 members


    No, its not my website but I have become a member. What I do know is that the idea for this website came from members in a thread in a forum in moneysupermarket. There are threads all over the place to do with Firstplus, several in here, financial mail, consumer action group, all with members who have success against them, great ideas & suggestions but we are all working independantly of each other and trying to find justice in different places. The idea of this Firstplus Customer website is to co ordinate as a group. The main issue is to tackle their refusal to reduce their interest rates as a group, then to share information about PPI claiming. Personally I think that its a positive step forward for FP customers affected by these matters and the only way to grow our numbers is to hi light the website on other forums. The website went live yesterday evening, 8 members already is a pretty good start in my opinion. If you have something positive to contribute, please do let us know.
  • liserini
    liserini Posts: 18 Forumite

    I'm not struggling to repay the loan but it's the principle.

    I agree at this point. I also have a FirstPlus loan :( I can currently afford it. It concerns me that as soon as interest rates go up again, they will soon start increasing payments again.
  • I am also with First Plus, seems like i am paying around 10%.

    Both interest rates AND Libor rates have decreased significantly.

    How can we take this further with necessary people to get Barclays first plus to take action and reduce our payments?

    thanks
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