First plus ripoff

AMILLIONDOLLARS

After reading these post, I will go down on my knees tonight and thank God, I was refused a loan from First Plus and Ocean Finance many many moons ago. To thank them for their wisdom I have just signed the petition for those who were not so lucky.

Good luck All

AMD

halifax71

All joking aside this clearly highlights the ability of the lender to pass on increases in FHBR / BoE whilst avoiding the reciprocal need to pass on decreases. This puts rates on a perpetual upward trend.

For those not worried already, based on the history to date of maximising their allowable return, should FHBR revert to its 5 year average of 5% then my rate can increase to 18% making my repayment £719 per month as opposed to when I took out the loan (when FHBR was similarly 5%) of £376 per month.

The Financial Ombudsman says this is OK because they are complying with the terms and the OFT won’t say what they think as they don’t deal with individual complaints. Similarly the OFT won’t disclose whether they have any relevant information that may assist civil action as you have to prove relevance before disclosure. This lot are all in cahoots with each other. Once again the regulatory system fails those it is meant to protect.

FATBALLZ

shafted_fpc wrote: »

oh by the way the petition reads

2nd charge mortgage companies, such as Barclays First Plus, have not reduced interest rates in line with the huge reductions in BoE base rates despite using increases in such rates to trigger interest rate rises to borrowers.

Companies such as these hide behind their Terms and Conditions to take advantage of borrowers and make excessive profits when the cost of borrowing to them is low. Their standard terms and conditions quote a "variable" interest rate but they have no obligation to reduce rates when BoE, or similar indices, fall but can increase rates to their borrowers should rates rise.

A variable interest rate should only be to the benefit of the lender. The government should force the Financial Ombudsman Service, the Financial Services Authority and the Office of Fair Trading to investigate such companies.

The Government should act swiftly to force companies such as these to lower interest rates and rewrite their Terms and Conditions so that they are fair and equitable.

This petition might have done a bit better if it hadn't been cocked up with the line in bold.