Firstplus Interest Rates

ruthie70

Surprise, surprise Firstplus have not yet passed on the reduced interest rate to their customers. I called them to enquire and without actually saying no they weren't doing it, I was told it hadn't been decided.

This makes me mad - my secured loan with them has gone up from 9.2% when I took it out to 11.5%. There was the 0.5% cut a few months back and now the 1.5% cut but yet still nothing. Given that this company seems to be the biggest cause of single premium policy grief I think I am going to make a complaint - probably won't get anywhere but don't want them getting away with this!!

Bolitho

I am in the same boat, whilst the interset rates are going down First Plus has not passed anything on. Surely there must be some control of what they can/can't do? If not then what stops them from putting them up again and again until the repose someones house to get the money now???

ruthie70

I phoned the Ombudsman for advice on this as Firstplus use the phrase "in line with the Bank of England interest rate" when it suits them i.e. put up the rates, yet when they come down - nothing!! The Ombudsman advised I write to FP to ask exactly how they calculate the interest on a variable rate loan - if I don't get a satisfactory response the Ombudsman office said I should contact their office again and they will advise where to go from there. On another note I saw red with a letter received from Firstplus this week - it gave advice on how to control spending in these difficult times i.e. switch energy suppliers etc. :mad: :mad: If they cut their interest rates then that would make life a lot easier - going to send them a stinker of a letter re this, patronising so and so's.....

daxus

They actually state on their website

"Our aim is always to offer the very best service and ensure customers get a competitive rate, and as such we review our rates periodically to ensure the rate you are charged is in line with market conditions."

They can hardly claim that the rates they are currrently charging are in line with market conditions, can they? Or maybe they mean that in a market when they do not have to win over any new customers, or worry about existing customers being able to move their loan elsewhere they can keep upping the interest rate whenever they fancy. And if customers get to a point when they can't afford the payments any more they can repossess the houses to clear the loans... Lovely.

My First Plus loan is currently at 7.5% higher than my mortgage rate... Surely something can be done.

Conned_by_FP

May I run this through the forum:

When I took out my FP loan I was concerned about variable rates. After all it was intended to get some control over the finances so I asked for a fixed rate. The lady said they did not offer fixed rates but then assured me that their rates did not vary with every change in the interest rate "like a ordinary mortgage" The implication was basically do not worry the rates would not change that often or by much.

I had a letter (which I think I still have) from FP admitting that this was said but they spun it by saying that their rates had not always followed the market (right they always anticipated them). Perhaps some of the staff made redundant by Barclays would be able to confirm that this was a line they used to sell the loans . If so is that grounds for mis-selling?

Second their adverts were all about "take control of your finances" implying that you'd be better of paying over a longer period of time. (Of course with the ever so nice Carol (poison) Vordermann lending her pretty little face to it). Consequently they must have had a lot of people take out loans to make life easier trusting FP to act in the interests of the customer (what else would they do when the lovely Carol was advising you to take out the loan?). The point is there at least some contradiction between the advert and what is happening with the interest rates which followed every rise up (plus a bit) but have not dropped now.. How can people take control of thier finances if FP are free to charge any interest rate they like?

ruthie70

Carol Vorderman should be ashamed of herself...maybe she should front a campaign for all those being fleeced by FP now!!!

I spoke to FP the other day, yet again complaining about their failure to pass on the interest rate reductions. Again I was fobbed off, so they are going to get it in writing - might not get anywhere but makes me feel better. I also complained to them about their patronising recent letter telling me how to save money in these difficult times, i.e. change electricity supplier etc.

I think the more people who question their calculations/and/or the way interest is set the better - if no satisfactory explanation is received we pass on to the Ombudsman.

The FOS have already told me that they are happy to look into it if this is the case - I'm sure they know only too well what a bunch of cowboys FP are.