Firstplus PPI calculations (after the 5 year rebate)

marshallka

di3004 wrote: »

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?

Have not got a clue as there was a partial payment and also there was the refund after 5 years.

As regards bibigon's post i cannot understand unless you mean that they add monthly PPI on top of your loan payments and then refund you only the PPI without the interest???? Is this what you mean here?

Your loan is increased even after paying monthly payments as the monthly payments are PPI and interest and you only get back PPI so they are still getting the interest out of you which then increases the loan. The interest is often more than the PPI premium anyway. Either way they get lots.

Example PPI £5000 interest £6000
They give you back after 5 years £5000 being just the PPI so they have still made £6K all for nothing.

bibigon

Hi everyone, thanks for your help
this is what I find odd:

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

They have counted the payments (in red font) towards increasing the loan. In other words they pocketed the money and made the loan balance bigger:eek:. As I see this the money paid to them for PPI should be either taken off the loan balance or refunded (the loan balance stays unchanged in this case). Please correct me if I am wrong.

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

New balance = £17049.56

marshallka

bibigon wrote: »

Hi everyone, thanks for your help
this is what I find odd:

They have counted the payments (in red font) towards increasing the loan. In other words they pocketed the money and made the loan balance bigger:eek:. As I see this the money paid to them for PPI should be either taken off the loan balance or refunded (the loan balance stays unchanged in this case). Please correct me if I am wrong.

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

New balance = £17049.56

Firstplus don't seem to know about plus and minus. They did the same with my balance and added an amount of £1300 at the end of the loan which they wrote to me and said was actually taken off the balance owing to them and they actually added it. I then queried it with them and they said they made a mistake and should have said added to my balance BUT they could not tell me why they did this. Its on the statements they sent to me in the SAR. I really cannot work the above posters redress out and if it were me i would let the FOS check it as there is a complication of making the additional payment and also the fact the PPI (minus the interest) was refunded after 5 years. I do see your point though.

russt2000

HI, there is a lot of confusion due to the complication of you situation, nver trust FP to be anything other than dishonest .

To be honest , I would find a self employed local accountant and get it checked proffessionally ,it would not cost that much and may well be worth it to get a difinitive answer.

the only way to see if they are still trying to do you.

russ

marshallka

russt2000 wrote: »

HI, there is a lot of confusion due to the complication of you situation, nver trust FP to be anything other than dishonest .

To be honest , I would find a self employed local accountant and get it checked proffessionally ,it would not cost that much and may well be worth it to get a difinitive answer.

the only way to see if they are still trying to do you.

russ

Or a consumer credit expert would be better perhaps. Its about how Firstplus treated the lump sum repayment and whether this was charged for doing this etc. An accountant would be able to add the figures up but not know all about consumer credit/settlements etc in the way that a consumer credit expert would. What about the Citizens Advice perhaps? Or half hour free with a solicitor just to check.

brand_no_7

Sorry to have confused you all! Once again a prime example of FirstPlus calculations!

Your helpful comments spurred me on to revisit the figures again and instead of trying to match FirstPlus' over complicated calculations I have used a strange concept to them - basic maths.

The problem is the £13,156.94 rebate - which having considered it is more of a problem for firstplus than me - it is them who have used this rebate to complicate matters.

This is what i have done with my calculations:-

Prior to any restructuring my monthly payments were £351.45 and there is 19 years and 1 month left (229 months). So over the remainder (with no changes in interest rate) I would have paid a further £80,482.05.

They advised that after the restructure the monthly payments reduce to £271.75 so again over the life of the loan a further £62,230.75.

They have said because i had the rebate my monthly payments are now £344.53 (note that it has increased since last letter) which means over life of the loan i would pay £78,897.37 which is an additional £16,700 more than the above figure.

I have received £19,314.93 (rebate and overpayments) in respect of the PPI. The true cost of the PPI is £37,941.07. Therefore in some shape or form there needs to be a restructuring of the remainder which is £18,626.14.

I deducted this figure from £80,482.05 which gives a figure of £61,855.91 divide that by 229 and the monthly payments are £270.11.

Therefore i have calculated using simple maths that they want me to pay £74.42 more which works out over the lifetime of the loan (on current interest rate) to £17,042.18

so basically i believe i will pay £17K more than I have to so does not appear to be the fairest of redress!

Thought I would show my working outs as it makes it clearer in my mind, to help clear up the confusion and to assist anyone in a similiar situation. Be careful they will try and blind you with science.

Any comments would be welcome

Many Thanks

brand_no_7

Sorry to have confused you all! Once again a prime example of FirstPlus calculations!

Your helpful comments spurred me on to revisit the figures again and instead of trying to match FirstPlus' over complicated calculations I have used a strange concept to them - basic maths.

The problem is the £13,156.94 rebate - which having considered it is more of a problem for firstplus than me - it is them who have used this rebate to complicate matters.

This is what i have done with my calculations:-

Prior to any restructuring my monthly payments were £351.45 and there is 19 years and 1 month left (229 months). So over the remainder (with no changes in interest rate) I would have paid a further £80,482.05.

They advised that after the restructure the monthly payments reduce to £271.75 so again over the life of the loan a further £62,230.75.

They have said because i had the rebate my monthly payments are now £344.53 (note that it has increased since last letter) which means over life of the loan i would pay £78,897.37 which is an additional £16,700 more than the above figure.

I have received £19,314.93 (rebate and overpayments) in respect of the PPI. The true cost of the PPI is £37,941.07. Therefore in some shape or form there needs to be a restructuring of the remainder which is £18,626.14.

I deducted this figure from £80,482.05 which gives a figure of £61,855.91 divide that by 229 and the monthly payments are £270.11.

Therefore i have calculated using simple maths that they want me to pay £74.42 more which works out over the lifetime of the loan (on current interest rate) to £17,042.18

so basically i believe i will pay £17K more than I have to so does not appear to be the fairest of redress!

Thought I would show my working outs as it makes it clearer in my mind, to help clear up the confusion and to assist anyone in a similiar situation. Be careful they will try and blind you with science.

Any comments would be welcome

Many Thanks

Bunnyduck

i had a loan off FP for£ 80918.50. included was ppi,£15918.50 .i keep reading about a 5 year refund ,do you get this automaticly or do you apply i am 5 years into my loan in october.what would i get.Help im so confused:

di3004

Bunnyduck wrote: »

i had a loan off FP for£ 80918.50. included was ppi,£15918.50 .i keep reading about a 5 year refund ,do you get this automaticly or do you apply i am 5 years into my loan in october.what would i get.Help im so confused:

Hello and welcome.

Going by what I am reading, I am taking it that FP have added the PPI automatically to your loan, am I correct here?

These single policies are a right costly rip off, for instance if your loan was for example over say 25 years, this cover only protects you for the 5 of those years, yet you would still be paying that PPI for the life of the loan.

I would try to reclaim on this if this is your case, so for more information with guideliness of PPI reclaiming, a checklist of mis selling reasons, templates etc, if any of this occurs to you then go for it, its a lot of money, and also remember the interest as well.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

If you require further help, please ask, but read the above link first as well, all the best.;)

marshallka

Bunnyduck wrote: »

i had a loan off FP for£ 80918.50. included was ppi,£15918.50 .i keep reading about a 5 year refund ,do you get this automaticly or do you apply i am 5 years into my loan in october.what would i get.Help im so confused:

Were you happy with the PPI being added and were you not explained about how to claim the refund etc when you had the loan. These single premiums can work out so expensive in the long run.