firstplus payment protection policy

shaun1149

Does anyone have any ideas on how to deal with a mis-sold PPP from Firstplus financial group?
I (bitterly regret) took a loan with Firstplus in 2001 and was sold a Payment Protection Policy.
I didnt realise the PPP was added to the loan and I was charged interest on it.(£5,500 over 5 years)
I wasnt even told it was optional,only that I would get the premium back after 5 years (if I didnt claim) and it was therefore "costing me nothing".
Having realised I had been well and truly conned I wrote to the Financial Ombudsman who advised Firstplus were not a member at the time and can do nothing.
I have written to the Finance and Leasing Association who in turn wrote to Firstplus.They have replied to the effect of "Tough!"
Anyone any ideas of where I can go from here?
Shaun1149

dreamer33

Hi we were mis-sold ppi by Freedom Finance who were the broker for Firstplus we repeadly said we did not want ppi and still received forms with it on. We are in the process of gathering as much info as possible to see if we have a court case against them. They use tricks which are unfair. Under the Data protection act you can for a fee of £10 request all info they hold on you eg telephone calls and any paperwork they have. Not sure if it helps you though, it might. We were also told about getting so much back after 5 yrs they don't tell you its added to the loan either, they just hope that you don't see it on your app form. ROBBERS.

74thMaverick

I am just in the process of getting a loan from Firstplus and they have explained the PPI and have given me different monthly payments based on with and without PPI

However they have said that i will receive 100% of my premiums back after 5 years and quoted me a value of just over £12k that i would get back, the trouble is that the premiums only add up to £9k and there is a difference between the loan and PPI - there numbers don't add up ?

If i was to get this amount back they advise paying it of of the loan, not a bad idea or you can use it for anything you want ?

I'm not convinced because the numbers don't add up - i'm trying to find out more info.

Incidently the document they have on line mentions nothing about the refund, it just describes the policy and what you are covered for.

74thMaverick

Had a long phone call with FirstPlus re their PPI

What happens is - a premium is added to your loan and after 5 years you get 100% of your premiums back plus future payments, BUT the PPI only lasts for 5 years after which time you have to get another PPI - BUT you still continue to pay the premuim for the full term of the loan ?

This means eg my premim was around £100 so i would have paid around £6k and i would have got back after 5 years a su of £12k....sounds good but if you can't afford to pay of the loan you continue to pay the premium....so if you continue for the life of the loan you would end up paying £24k !!!

However they suggest using the £12k to pay off some of the loan, although i not sure how they do it or if you continue to pay only the loan or the loan and an apportionment of the PPI premium.

Anyway you can get far cheaper PPI's as advised on this site.

soontobesensible

:mad: Has anyone received any data yet from First Plus? I haven't got any of my paperwork for the two PPI's I was unknowingly sold. Also has First Plus notified anyone who their broker was as I can't remember.
Ta!

rain2000

dear friends how have been taking loan from First plus , I am not surprised to hear that you didn't know about some terms and conditions of first plus also about the paperwork which most of you haven't received.
I was working at first plus really and it's crap , i saw how they work and all the job they do is really stupid and they don't care about the customers security and safety , they miss some paper work and some other paper work into someone else’s record , even with payments they send off amount for people which is completely wrong from what they have agreed for at the beginning , and this is all d because of the untalented and experienced people who work at first plus .
most of them don't have any qualification and they got the jobs there as seniors lol .
so really they are getting there wages from the customers lol :rotfl:

Captain_Cuddlepuss

74thMaverick wrote: »

Had a long phone call with FirstPlus re their PPI

What happens is - a premium is added to your loan and after 5 years you get 100% of your premiums back plus future payments, BUT the PPI only lasts for 5 years after which time you have to get another PPI - BUT you still continue to pay the premuim for the full term of the loan ?

This means eg my premim was around £100 so i would have paid around £6k and i would have got back after 5 years a su of £12k....sounds good but if you can't afford to pay of the loan you continue to pay the premium....so if you continue for the life of the loan you would end up paying £24k !!!

However they suggest using the £12k to pay off some of the loan, although i not sure how they do it or if you continue to pay only the loan or the loan and an apportionment of the PPI premium.

Anyway you can get far cheaper PPI's as advised on this site.

Mav - Don't do it! Learn from the mistakes of others on this site and avoid First Plus like the plague. Do a thorough search (best results from searching for firstplus not first plus) of the forum and you will see the positions some of us have been placed in after trusting First Plus. The cash back offer is a cheap trick...PPI if you need it can be bought far cheaper elsewhere without having to sign up to a single premium policy. I could go on but please do your research before signing on the dotted line.

Dylanwing

I second that, do not touch Worst plus, and definitely do NOT NOT NOT NOT take the PPI.

Reidnet

Hi,
I have some info on these types of policies which did get released as a press release the other week.

Don’t be conned with Cashback options offered by PPI Providers.

Some big named lenders like FIRSTPLUS sell their own branded Single Premium Payment Protection Insurance and often use a term that they call with “Cashback”. The Cashback option is used as a sweetener under the guise that you will receive all of your premium (Less 5% Insurance Tax) back if certain conditions are met. This of course looks good in Advertisements but in reality it can still cost consumers a lot more than standalone Payment protection Insurance from companies like Paymentcare or Brittish Insurance.

As most single premium policies only cover you for 60 months and the premium is added onto to you loan you have to also consider the true cost of the policy. If your loan is for longer than 60 Months you have to remember that you will still be paying interest on the amount used to purchase the policy until your loan is completed. You have to also consider the fact if your loan is for 120 months you will only be covered for 60 Months and you will have to purchase another policy to cover the remainder of your loan.

Certain conditions will apply to the Cashback option, some of these conditions are not clearly laid out in the policies and of course the onus is on the consumer to claim the cashback within 30 days of the expiry of the policy. You have to ask the question here too, If the consumer fails to request the cashback within the required time what happens to the Cash ?, Could it be the case that the lender will have already obtained this refund and if the consumer does fail to claim it back it will simply add to their profits?.

I have myself asked one company which I had a Cashback PPI policy with ( I settled my loan early) to provide me with confirmation from the Insurance provider that the policy had in fact been cancelled. Even after asking for this confirmation on at least 3 occasions they still have not provided any proof that the policy has in fact been cancelled. Could this be that the policy never gets cancelled and the lender will claim the cashback to add to their overall profits.

An example of the grossly Overpriced policies that these lenders use..

The example used relates to a Cashback policy from Firstplus which covered a monthly payment of just under £200.00.

Cost of Payment Protection Insurance Policy £3388.10
Interest @7.9% APR (Variable) (60 Months) £1357.47
True Cost of Payment Protection Policy £4745.57
Cashback Payment if Conditions met £3218.69
Actual Cost for 60 Months Cover £1526.87

The same level of Payment Protection from Paymentcare.co.uk for the 60 Months would cost £660.00 making a considerable saving of £866.87 which makes the policy from Firstplus over double the cost even if you do manage to claim the Cashback. Obviously if your original loan was for longer than 60 months you would still be paying Interest on the amount advanced to purchase the policy which could add another 1-2 thousand pounds.

Ian :beer:

andybee321

:T :money: Hi All,
Just recieved an adjudication from The Financial Ombudsman. Won !!!!!!! 100% refund plus 8% interset, Thanks to the site. Why major finacial institutions such as Barclays who own First plus have to stoop to such scams to make money is beyond me. Another little gem is that the insurers who got the one off premium that I didnt know about is guess who ? Barclays Insurance Dublin. Win Win for Barclays at the consumers expence. I will never touch them again.

ANY_CHANCE

soontobesensible wrote: »

:mad: Has anyone received any data yet from First Plus? I haven't got any of my paperwork for the two PPI's I was unknowingly sold. Also has First Plus notified anyone who their broker was as I can't remember.
Ta!

Hi there
I wrote to first plus complaining of missold PPI they have written back and told me that OH origionally was sold it through norton finance - they passed on my letter of complaint to norton finance who are now 'looking into it'
I settled the loan last year and we were only given 2000 of 12000 PPI so i am unsure of if i should still be chasing FP for unfair rebate as well as NF for mis-selling:o