firtplus

level42_2

Recently received documents in reply to a subject access request.This is to persue a ppi reclaim. However, when sifting through the paperwork i noticed a letter from my mortgage provider (abbey) telling firstplus that they couldnt put a second charge on our propety because of the type of mortgage we hold (flexible).I have since phoned abbey who have confirmed this.
the firstplus personal loan is for £35000 and £8500 ppi (£43500 total) and was borrowed over 15 years in 2004.
Because firstplus went ahead with the loan knowing they couldnt get a charge on the property,does this mean....

1 the loan isnt secured against our home
2 the loan is illegal and void

Im not sure what steps to take now.....

AMILLIONDOLLARS

1. Doesn't look like it. But if you did not keep up your payments, then Firstplus could apply to the courts for a charging order against your house, so they could rectify their mistake!
2. Because there is no charge against your house, it does not make the loan illegal, you've just been given a very large unsecured personal loan. My advice, just keep up the payments and any money won through your claim should be used to pay off some of the outstanding balance.

AMD

level42_2

thanks for that....but i cant help thinking theyve misled me over this ,
I hoped i had some legal backing to get the loan squashed seeing as i have virtually paid back what i borrowed. (the remaining is interest).Is it still not worth seeking legal advice?

AMILLIONDOLLARS

level42 wrote: »

thanks for that....but i cant help thinking theyve misled me over this ,
I hoped i had some legal backing to get the loan squashed seeing as i have virtually paid back what i borrowed. (the remaining is interest).Is it still not worth seeking legal advice?

You may have been mislead over the ppi, or possibly the APR, but I can't see what else they could have mislead you about? because they have failed to secure the loan against your property works in your favour:T, you now want the loan voided because of this?? By all means, throw good money after bad!!

AMD

level42_2

yes amd, to be honest the whole thing has been a bit of a nightmare and if there is a way out of it then i hope to find it, you obviously have some knowledge of firstplus.
Do you honestly think there is no way forward with this one?

l42

AMILLIONDOLLARS

There are several posts regardng Firstplus on this site, see some example below: Do a search and you will find you are not alone!!

http://forums.moneysavingexpert.com/showthread.html?t=1945441&highlight=firstplus
http://forums.moneysavingexpert.com/showthread.html?t=2298697&highlight=firstplus
http://forums.moneysavingexpert.com/showthread.html?t=2284901&highlight=firstplus

AMD

level42_2

thanks AMD....
but thats frightening!
now i know i need to get out ! when interest rates rise we'll be well and truly shafted!!

AMILLIONDOLLARS

Seems like you're heading that way. the below paragraph was taken from my first link which is a very interesting read.

This is what Halifax71 had to say about the FO ruling.

"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."

Good luck

level42_2

read that....
thanks, thats why i said id be shafted,
feelin down now!

archive18

Hi There

I have a question.
I took out a loan from firstplus sercured against my house, as it was a large loan I took out insurance against it. I got into financial difficulties and had to sell the house. The sale of the house paid off the mortgage and the loan but didnot cover the cost of the insurance so I had to take a unsecured loan with Firstplus to pay off the insurance. My question is this is it legal to do this? As they had got the money for the loan back.

Many thanks

AMILLIONDOLLARS

I think you have a very good case for getting your money back

Read this
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

AMD