Firstplus PPI calculations (after the 5 year rebate)

brand_no_7

Has anyone been successful in recovering the PPI payments (in line with the FOS recommendations) from Firstplus after they have received the cashback after 5 years.

If so can you contact me because a call to Firstplus has left me very confused because apparantly because of the cashback my balance will stay the same and my monthly payments increased!

marshallka

brand_no_7 wrote: »

Has anyone been successful in recovering the PPI payments (in line with the FOS recommendations) from Firstplus after they have received the cashback after 5 years.

If so can you contact me because a call to Firstplus has left me very confused because apparantly because of the cashback my balance will stay the same and my monthly payments increased!

As regards the payments increase has there been an interest rate increase?

As regards the "cashback" did you not receive it in a cheque payable to yourself? If you did not then the cashback was used against your loan then this should have certainly reduced your balance by that amount.

brand_no_7

We received a cheque allegedly for the PPI cashback after 5 years.

We were successful in our complaint to the FOS - It is in the hands of Firstplus to do the calculations.

On a general call to them to work out some adminstrative stuff they mentioned that because i had the cash back this would have to be taken into account which is fair enough but then went on to say that this could lead to the payments being increased (no mention of interest rate increase).

I am awaiting their calculations but was just wondered if this has happened to anyone else in this situation or whether i am unique case

marshallka

brand_no_7 wrote: »

We received a cheque allegedly for the PPI cashback after 5 years.

We were successful in our complaint to the FOS - It is in the hands of Firstplus to do the calculations.

On a general call to them to work out some adminstrative stuff they mentioned that because i had the cash back this would have to be taken into account which is fair enough but then went on to say that this could lead to the payments being increased (no mention of interest rate increase).

I am awaiting their calculations but was just wondered if this has happened to anyone else in this situation or whether i am unique case

If you have won misselling then they should work out the loan with the PPI forgetting what you have received back for now and then work out the loan as if the PPI had not been added and then pay you the difference with 8% statutory interest on top which would put you back into the position as if you never had the PPI at all. Then I would say it be right for them to take into account the amount you received at cashback.

I would post the figures up here for someone to look at and then go back to FOS if there are discrepancies.

brand_no_7

marshallka wrote: »

If you have won misselling then they should work out the loan with the PPI forgetting what you have received back for now and then work out the loan as if the PPI had not been added and then pay you the difference with 8% statutory interest on top which would put you back into the position as if you never had the PPI at all. Then I would say it be right for them to take into account the amount you received at cashback.

I would post the figures up here for someone to look at and then go back to FOS if there are discrepancies.

Thank you - It just cannot be right that I could end paying more in the long run. I am sure i am not alone in always taking what Firstplus says with a huge pinch of salt.

Here are all the relevant figures

Original amount advanced - £55,000
PPI amount - £13,469.50
Term of loan - 300 months
first payment - September 2003

Original repayment - £642.96

Original APR - 12/2%
Original MIR - 0.967%

Monthly payments did increase to £665.33 (04/04), £677.55 (06/04), £702.27(07/04)

Things get a bit complicated because in December 2005 made partial payment of £40,140.44

Over same term monthly payments reduced to £320
rised to £351.52 (08/07)

In August 05 i had the refund of the PPI policy of £13,469.50

marshallka

PPI element is 19.67%. That means that 19.67% of the repayments are to do with the PPI. I will calculate this from the first repayment here as I do not know how to work this when there has been interest increases.

642.96 x 19.67% = 126.47 x 300 = £37941.06 would have been what the PPI cost you had the loan ran its full course.

The rest would have to be worked from whatever they did when you have now cancelled the PPI. ALso is it complicated by the lump sum payment too but will try and have a look later.

All I can do is state the obvious in that your whole PPI would have cost you the £38K near on. Its a lot of money and although you got back the £13469.50 they still owe you loads more as there was interest on top.

Maybe someone will be able to have a look too. There is also a thread by maxdp on how FOS works out redressing. You really need to get more in writing from Firstplus and post up what the new loan is likely to be and what they are paying you in the form of a cheque.

brand_no_7

Thank you very much for taking the time to look at it.

Firstplus indicated they would come back to me in July and i will see what they say. When i tried working it out the £40,000 partial confused me and now Firstplus appear to have thrown a few curveballs that confuse me further!

marshallka

brand_no_7 wrote: »

Thank you very much for taking the time to look at it.

Firstplus indicated they would come back to me in July and i will see what they say. When i tried working it out the £40,000 partial confused me and now Firstplus appear to have thrown a few curveballs that confuse me further!

Just keep posting and I am sure between us we can all work it out. :eek:

Let us know when you receive anything.

brand_no_7

Right I have heard from Firstplus and can now kind of answer my own question

In relation to the £40,000 partial payment they have said that this was applied exclusively to the actual loan not the PPI portion.

The calculations are:

Interest accrued to date (loan advance and PPI premium) - £32,991.63
Interest accruted to date on loan advance only = £26,501.43
Difference = £6,490.20
PPI Premium - Cashback £13,156.94 already received = £312.56
Total applied to reduce loan balance = £6,802.76

Total repayments made to date (loan advance and PPI) = £71,443.35
Total repayments made to date on loan advance only = £65,285.36
Difference in Payments (being returned to me) = £6,157.99

8% interest on payments = £1,540.85

Redress:
Current Loan Balance = £30,010.31
Less amount due to be applied to reduce loan balance = £6802.76
Plus monthly payments made towards PPI = £6,157.99

New balance = £29,365.54

I have agonised over these figures but leaning towards them being correct. It seems the lessons learned are as follows:-

anyone makes a partial payment it is off the loan balance and not the ppi

if you received the PPI rebate (after 5 years) then the payments you have made on ppi goes back on the account but you still get the money (so overall in the past 12 months i have received £19K relating to PPI)

Therefore had i not had the rebate they say my loan would have been reduced to £23,207.55

Its all a bit confusing but I think it is right. However if someone can see an absolute glaring problem that you think i should know can you tell me before i accept this offer.

also anyone in similiar relating to the rebate please note above.

Many Thanks

bibigon

brand_no_7 wrote: »

Right I have heard from Firstplus and can now kind of answer my own question

In relation to the £40,000 partial payment they have said that this was applied exclusively to the actual loan not the PPI portion.

The calculations are:

Interest accrued to date (loan advance and PPI premium) - £32,991.63
Interest accruted to date on loan advance only = £26,501.43
Difference = £6,490.20
PPI Premium - Cashback £13,156.94 already received = £312.56
Total applied to reduce loan balance = £6,802.76

Total repayments made to date (loan advance and PPI) = £71,443.35
Total repayments made to date on loan advance only = £65,285.36
Difference in Payments (being returned to me) = £6,157.99

8% interest on payments = £1,540.85

Redress:
Current Loan Balance = £30,010.31
Less amount due to be applied to reduce loan balance = £6802.76
Plus monthly payments made towards PPI = £6,157.99

New balance = £29,365.54

I have agonised over these figures but leaning towards them being correct. It seems the lessons learned are as follows:-

anyone makes a partial payment it is off the loan balance and not the ppi

if you received the PPI rebate (after 5 years) then the payments you have made on ppi goes back on the account but you still get the money (so overall in the past 12 months i have received £19K relating to PPI)

Therefore had i not had the rebate they say my loan would have been reduced to £23,207.55

Its all a bit confusing but I think it is right. However if someone can see an absolute glaring problem that you think i should know can you tell me before i accept this offer.

also anyone in similiar relating to the rebate please note above.

Many Thanks

I may sound silly, but why do they add monthly payments towards PPI (supposedly the money they are to return to you) to the loan amount? Is this right? Surely monthly payments suppose to reduce the balance, not increase the loan? Even if you had a cheque to refund these payments, the loan amount should not be affected by them since it is YOUR money they refund.

di3004

bibigon wrote: »

I may sound silly, but why do they add monthly payments towards PPI (supposedly the money they are to return to you) to the loan amount? Is this right? Surely monthly payments suppose to reduce the balance, not increase the loan? Even if you had a cheque to refund these payments, the loan amount should not be affected by them since it is YOUR money they refund.

Hi there

I'm sure Marshallka shall be here at some point today to take a look for you.;)
You do not sound silly lol , its a rip off isn't it?