Firstplus PPi

dazjam

I had a Firstplus loan but got another loan 12 months later from Firstplus to pay the first one off and it states in the paperwork "that the amount of PPI has been forwarded direct to the insurers to purchase the 5 year payment protection policy in accordance with clause 12 of the agreement".
I'm totally lost and don't know if i can claim or not because it was paid off early and for a single premium only

di3004

dazjam wrote: »

I had a Firstplus loan but got another loan 12 months later from Firstplus to pay the first one off and it states in the paperwork "that the amount of PPI has been forwarded direct to the insurers to purchase the 5 year payment protection policy in accordance with clause 12 of the agreement".
I'm totally lost and don't know if i can claim or not because it was paid off early and for a single premium only

Hi there

Of course you can reclaim on this.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
Read the above link to give you more of an idea, if you were mis sold no matter if the policy is active or settled it makes no difference.

The first loan, who was that arranged by?
And in the regards of the 2nd loan that was obviously FP for an advanced loan.

If you were mis sold on the 2 loan ppi you write to both broker for the first loan and the lender for the 2nd, but I understand they sort of calculate the ppi going into the 2nd loan, Marshallka will be able to explain more on this bit in regards of how they calculate this, but still reclaim on the 2 if you believe you were mis sold on the 2 of them.

Follow the guidelines of reclaiming in the link with templates but write your own reasons, remember to write the account numbers for each one.
They have 8 weeks to respond in full, keep at them until they give you thr final response, where they should give details of the Financial ombudsman service (FOS).
Post by recorded delivery, good luck.;)

di3004

Copied and pasted this from the link I posted you.

Were you Were you sold a ‘single premium’ loan policyWeresold a ‘single premium’ loan policy?

A single premium policy is where the whole cost of the insurance is added as a big lump sum at the start of the agreement, which is then repaid over the term of the loan. Many loan policies were sold like this and while sales are soon to stop, if this applys to you and you left or changed your agreement part way through, you may be eligible for a part refund.
Does this apply to you? Expand the full [URL="javascript:showDiv5()"]Single premium[/URL] briefing.





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In Jan 09 the Competition Commmission ended its two year investigation, saying this form of insurance is now banned and gave lenders until Oct 2010 to comply. The FSA, who'd previously said it thought the policies were likely to be unfair to consumers as they were restrictive and most didn’t allow refunds if a contract ended early, has now asked all lenders to stop selling it by 29 May 09.

These opinions greatly strengthen the weight of reclaimers' cases.

How to tell if you have a single premium policy?

This type of policy is mainly sold with loans rather than credit or store cards. If it’s a single premium policy, the original paperwork will show the insurance as a fixed lump sum amount.

If the agreement was after May 05, you would have been asked to sign a separate agreement so you should have extra paperwork for the loan and the insurance.

It’s also noteworthy that these policies are often only valid for five years max; even if your loan term is longer, so you could get a five year policy but end up paying interest on the insurance for the full loan term! If you didn’t realise your cover only lasts / lasted for five years read the 'Big One' section above for more info.

When is a reclaim possible?

The FSA has said that new and existing customers should benefit from its agreement with providers and my interpretation is this means it should also apply to past consumers who were treated unfairly. If you had a single premium policy, one of the following applies to you and you didn’t get a refund at the time, you should now contact your lender to ask for a partial refund.

• cancelled your insurance before the end of the policy,
• paid your loan back early (unless this was very near the end),
• had a change of circumstances meaning you were no longer eligible for the cover and informed your insurance provider of this change at the time.

If your circumstances did not change and you saw your policy through to the end you will not be able to reclaim for this section, but do read the other misselling categories to see if you can reclaim the insurance for another reason.

The FSA also says that refunds should be “calculated fairly, which may or may not result in a pro rata refund”. Unfortunately refunds tend not to be fully pro rata, i.e. you won’t get back half the cost of the insurance if you have cancelled after half the time, as providers are allowed to include justifiable costs. These costs are usually paid towards the start of your contract but if you do cancel you should still get a good whack back.

Further note for existing customers

If you still have a single premium policy you can’t make a reclaim under this section, yet you may be able to cancel your insurance and get it cheaper elsewhere. See the Ditch Loan Insurance article for more info and read the other misselling categories to see if you can reclaim the insurance for another reason.

If you have changed your circumstances since taking out the policy contact your provider as soon as possible to see if you're still covered.

When you try to cancel your insurance without ending the loan, some lenders make you start a new agreement. They are allowed to do this as long as the new loan is on the same or better terms and does not disadvantage you in any way, for example it shouldn’t be more expensive or last longer. You should ask for this to be done without making a new search on your credit file.

The FSA says: "When consumers cancel the PPI without repaying the loan, some firms will need to reissue the loan without the PPI. Firms should ensure they treat their customers fairly in relation to the terms on which they reissue the loan."

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di3004

Is the loan is still active, they must repay you every penny you have paid and put you back in the position as if you did not take out PPI......plus interest.

If the loan is settled you should receive back the full ppi plus interest etc.

Some finance companies procedures are to take out new loans if you cancel the ppi and take out a new one to clear the existing one, but you will not have ppi with the new loan, the rate must be at least equal to that or better.
In FP case I think its just a matter of cancelling, the repayments will be lower but may not be by much as its after the cooling period.

This is just to give you some sort of idea, and you do not require the figures to add to the letter, they have all this on data, but it maybe worth working out the figures for your reference and to compare, just in case they make you an offer, this can be done at a later date.;)

The 5 year ppi policy is a big concern and a complaint on its own, as its not normally explained its added within the loan repayments and the interest.
Say if your loan was for 25 years, the ppi is only for 5 years, then what?
You will still be paying for the cover for the life of the loan, this is dimly looked at, and you have a great chance of succeeding, if not directly by them, I'm sure the FOS will resolve this for you X

dazjam

Thanks very much for the advice,I wrote to Firstplus to cancel the PPi on the Advance and they wrote back saying that they were prepared to make a refund of £3246.70 in respect of the premium paid and this would be credited to your loan account.Is this normal procedure or can i ask for the refund be paid directly to me

di3004

dazjam wrote: »

Thanks very much for the advice,I wrote to Firstplus to cancel the PPi on the Advance and they wrote back saying that they were prepared to make a refund of £3246.70 in respect of the premium paid and this would be credited to your loan account.Is this normal procedure or can i ask for the refund be paid directly to me

Hi there

Do you know what the original amount was for PPI, I would ask them what you have paid up to date and for them to send you a written calculation breakdown, in case anything is amiss, because if you were not happy with this, say for instance there was a big difference in the amount to what they have offered to take off your finance, you can ask the FOS to investigate this for you.

I know every finance company have their own ways on how they calculate refunds, if there are arrears they do generally refund to the arrears and what is left is paid directly to you, but there are loads on here who have had dealings with FP, I would wait to hear of their opinions on this matter, good luck.;)

marshallka

dazjam wrote: »

Thanks very much for the advice,I wrote to Firstplus to cancel the PPi on the Advance and they wrote back saying that they were prepared to make a refund of £3246.70 in respect of the premium paid and this would be credited to your loan account.Is this normal procedure or can i ask for the refund be paid directly to me

WIth cancelling the PPI and as this was a single premium you paid the whole PPI in the form of a loan on top of your original loan and this all had interest on it. What they have done is cancel the PPI and the remaining PPI that you have yet to pay (or just a slight amount of it anyway I bet) has now been taken off the settlement amount (although I realise you may have not settled yet) and then a new loan drawn up minus the small amount they have rebated you. This is not the same as misselling and they have not got to pay you back this amount as this is what you have not paid yet, however, you are going for misselling (and I do not blame you with firstplus) and this is where they have to pay you back all the PPI that you have paid over and then redo the loan without PPI. You would be put back into the position as if you never had it in the first place on BOTH loans (if you had PPI on the first one too which I bet you did).

dazjam

I had an original loan of £45000 but got a further advance to pay that off of £65000 and on that paperwork it states that £8968.50 was paid to Payment Protection Premium and then states that the amount of payment protection premium was forwarded direct to the insurers to purchase the 5 year payment protection policy ,the further advance having Payment Protection of £12954.50 which i have paid 12 months of.
Can i claim an amount back from this ,this is what is confusing me

pinknico

You can claim back both PPI policies if you believe they were mis sold.

marshallka

dazjam wrote: »

I had an original loan of £45000 but got a further advance to pay that off of £65000 and on that paperwork it states that £8968.50 was paid to Payment Protection Premium and then states that the amount of payment protection premium was forwarded direct to the insurers to purchase the 5 year payment protection policy ,the further advance having Payment Protection of £12954.50 which i have paid 12 months of.
Can i claim an amount back from this ,this is what is confusing me

If you have reasons for misselling then you would claim both the PPI's back as the first loan would have had PPI on it and then to take the further advance you would have had to settle the first loan and take out another PPI and only got a small amount of the PPI and interest back as a rebate. I am not sure what you are asking to be honest. If you had PPI on both loans and you are claiming misselling then you would be put back into the position as if you never had PPI at all on either loan and also 8% statutory interest too.

Have you been missold and also have you started the complaint or are you wanting to make a claim on the actual PPI for unemployment/ redundancy??

If you are asking about claiming an amount back from cancelling the second PPI then you can cancel but they again have to redo the loan and then the remaining PPI is taken off the balance but its not what you would think and most probably would only reduce your repayments a little bit. By just cancelling you would not get back what you have already paid over. By claiming for misselling you would get it all back, PPI, interest and statutory interest.

dazjam

I am asking if i can claim as it was a single premium on both loans but both our names are on both loan agreements and as i have paid the first one off with the second loan can i claim that back ?
Thanks again sorry to be a nuisance