First plus response to claim

marshallka

putty71 wrote: »

Sorry but I must be real thick as I am struggling to understand.

Why does the insurance premium only go down by a small amount? Please explain in idoit terms for me!!!!!!!!!!!

I mean, if so many are claiming back, is it worth doing as after 5 years I will get around 9k (assuming I don't claim for anything), but if I cancel now I will get a reduced amount yet still have to pay for the insirance for the rest of the loan. I thought the whole purpose of claiming was to get back what you paid so far and the monthly payment was then reduced for the loan only??????????

Please excuse my ignorance but someone must have been in the same position who can explain.

Thanks

Putty

Let me try and explain in plain english.

You go for a loan and you ask for how much you want to the loan to be. They then give to you another loan on the agreement. This other loan is to pay for a PPI policy upfront in one lump sum straight to the insurer.

You have then paid for your policy all at once but you have had to loan some more money to do it. This is then added to your loan that you originally wanted and treated exactly the same too. WHen you want to cancel the policy you are actually only cancelling the policy and not all the interest that is charged on the Loan for the PPI policy as the policy is a loan once on the agreement. Your cost of the policy could have been £4K but with interest been nearer £9K for example BUT you will only get a rebate of the £4K. The rest is interest. ALso that £4K policy is only for 5 years so after paying if off for 3 years they then look at the remaining 2 years left (so divide the 4K by 5 and you get 800 and times that by 2 years left and you get £1600) so they then say that they will rebate you a small proportion of the remaining £1600 that is left to pay (and they do not take into account the remaining INTEREST left on it). Your repayments will not go down by much at all cause most of what you are continuing to pay to them is the interest and this is not rebated or taken into account when you cancel and payable over the WHOLE term of your loan but the policy only lasts for 5. VERY unfair.

If they have not addressed the missale then I suggest you write back and reiterate your complaint and get onto FOS if they do not uphold it.

melorablack

What marshallka said plus something I said on your other thread....

You don't get a full rebate of insurance when you cancel which is why your payments haven't gone down by much. Plus the majority of the insurance is paid for at the start of the loan, which is another reason why it doesn't go down that much when you just cancel it.

pinknico

What Marshallka said. This is not a reply to your mis selling, this is a reply to you wanting to cancel.
They should still respond by the deadline they gave you and if you are successful with mis sale then you will get more refunded and lower repayments.

russt2000

yep ,now that you are trying to reclaim the ppi , fp are now answering your cancellation request ,because it will be far less costly for them.

so tell them to stick the cancellation and go for the full misselling claim. will be much more what you are expecting if upheld.

putty71

Many thanks to all especially marshallka. Can I assume then if my claim is sucessful that they will no longer charge me for the PPI interest? Also have others been in this position and sucessfully claimed and if so can you tell me how it went please?
Thanks

Putty

marshallka

putty71 wrote: »

Many thanks to all especially marshallka. Can I assume then if my claim is sucessful that they will no longer charge me for the PPI interest? Also have others been in this position and sucessfully claimed and if so can you tell me how it went please?
Thanks

Putty

If your claim is successful then they should put you back into the position as if you never had the PPI so yes, you would not be paying interest on it.

Also another pointer, do not accept them giving you an enhanced rebate against the PPI. You need to be put back into the position as if you never had the PPi at all. As regards cancelling it, if they have now cancelled the insurance they will take this into account when they calculate for the missale.

Please remember also that 99% of claims against FP are being upheld by FOS. That says something. Lots have won against Firstplus without the need for the FOS. Just do not give up.

Can we just be certain on this that it was actually FP that sold the policy to you as if you used a broker then its the broker you make the complaint against.

Good luck

russt2000

As Marshallka says , if you try and win the ppi as misold , then you will get back all the premiums of the ppi , the interest they have charged yo so far ,then they will remove all the remaining interest for ppi too .

so you will get some cash back, and the rest will go into reducing your loan so you are back as if it had never happened.

realyworth doing , you may be lucky and FPwill uphold or go to FOSwill take longer thats all

putty71

Yes it was definately First Plus who sold me the policy, not a broker although the insurance is tied up with Barclays Dublin, but very confident in saying that I never spoke with Barclays.

Thanks to all for the help and I will keep you updated.

putty71

Hi All again

I need further help now. Today we received FP's response and they said it was not misold, 2-3 pages of jargon referring to telephone call and policy book that we were advised to read.

I am totally confused, really desperate as I really need the money so please can anyone out there tell me if they have had a similar response first time round and what they did about it, and also if they have been sucessful. I have already reorted the issue to the FOS.

Like I said I am really desperate and hope that I am not stuffed, but please someone help, even if its to advise who the best PPI claims expert is to refer this to.

Thanks in anticipation

Putty

pinknico

If you have reported it to the FOS then that is the best you can do at this point apart from writing back to First Plus and saying you dont agree with their decision and reiterating why you were mis sold and telling them you have now lodged a formal complaint with the FOS.
Most claim companies use the FOS to resolve claims and you have already done everything they would have done.