FirstPlus interest rates - again

maxdp

Incipience wrote: »

Taking it to the Press :

http://www.myfinances.co.uk/feature/loans/personal-loan/don-t-get-caught-in-personal-loan-trap-$1270363.htm

Hi Incipience. Nice to see you back here. Thanks for that very interesting.:cool:

halifax71

Thought they'd have taken up the issue. Martin has made no reference to this issue in any of his media outlets.

Come on MSE - this is a big issue affecting many of your readers. The issues have the potential to have a massive impact on the secured lending market, i.e. PPI, multiple agreements, illegality of sales process, transparancy of information at point of sale, unfair contract terms.

My complaint is with the ombudsman now alongside many others. Don't play catch up, become part of the crusade.

Also, as an aside, why has this thread been moved to PPI & Other issues. As the thread instigator it has nothing to do with PPI - it's about APR.

bernie_inn

I've had interest cut today from them 0.8% not great but its a start I never sent any letters to them or had any correspondance requesting the cut has anyone else had a cut?

sue149

bernie_inn wrote: »

I've had interest cut today from them 0.8% not great but its a start I never sent any letters to them or had any correspondance requesting the cut has anyone else had a cut?

yes i got the same the first ever cut we have every had a think

kkchick2009

I got my letter today - aren't they kind?!!!!!!! 0.8 % so very generous

halifax71

They have reduced rates as they are contractually obliged to. If you read clause 7 re variations. They can't have you paying more than you were 12 months ago as rates have reduced.

They are not being kind / generous / reviewing in line with reduced BoE / LiBOR / FHBR. They have to - don't be fooled by this disgrace of a bank. Join the fight, complain to them and then to the ombudsman. If not you can expect a 4% rise when BoE returns to 5% in the future.

Google "First Plus Complaints".

Stillsmiling

Hmm I was annoyed about this but didn't realise so many others were! So glad I found you! I had the letter with the cut last week too so will go home and check through the correspondence and see how it has fared since I took the loan out.

The ombudsman is handling my PPI case so I might discuss this with him and see what he says. He's done pretty well so far with Worst Plus now having to set my loan back to how it should have with no PPI and refund my PPI payments! Thank God!

halifax71

It's been summerised on another site. If anyone feels that their variances do't follow this pattern please share.

(1) If FHBR falls with respect to one year ago, then if your FP rate is lower than it was one year ago, FP will not change it. If your FP rate is higher than one year ago, FP will reduce it to its level of one year ago (this is our situation now, some are billy no mates, some got a reduction).

(2) If FHBR is the same as one year ago, then if your FP rate is lower than it was one year ago, FP will rise it to its level of one year ago (that’s when you get the type of letter saying: “we increased your rate but we made sure you don’t pay more than you did a year ago”). If your FP rate is higher than it was one year ago, then FP will reduce it to its level of one year ago (that’s what happened to some of us in March last year).

(3) If FHBR rises with respect to one year ago, then it doesn’t matter whether your FP rate is lower or higher than one year ago, FP will increase it, by up to twice the FHBR increase from one year ago.


The problem here, not to state the obvious, but rates are going one way in the long term by this use of Clause 7. Can anyone afford to pay 15% (at least) on your loans?

The ombudsman needs to rule on the transparancy of FP rates before we all get repossessed.

Stillsmiling

Okay just checked my increases and decreases and they are:

Oct 05 took loan out at a rate of 9.060
Missed one or two here
Dec 06 - up 0.5 to 9.9
Feb 07 - up 0.3 to 10.2
Apr 07 - up 0.5 to 10.7
Jul 07 - up 0.3 to 11
Jan 08 - up 0.3 to 11.3
Mar 08 - down 1.1 to 10.2
May 08 - up 0.5 to 10.7
Aug 08 - up 0.3 to 11
Mar 09 - down 0.8 to 10.2

That isn't what I'd call "vary it from time to time".

halifax71

So, you see why your rate is reducing from March 09? They have to reduce back to your March 08 rate as it's a contractual obligation. Expect it to go to 10.7 in May and back to 11% in Aug.

Once FHBR increases, which it will i the next year or so, they will increase by upto twice that increase.

Clause 7 is totally UNFAIR - that is the complaint. It's totally one sided. All FP customers need to complain NOW.