Firstplus settlement figure

purpleparrotuk

I am waiting for a FirstPlus settlement figure to come in the post.
Ordered last Friday and still not got it. Dunno why it takes a week.

Anyway, I borrowed 65000 in November 2005 so have been paying for nearly 5 years. Still have 10 years left :mad:

I have just been reading that the Rule of 78 should no longer apply to me. Does this mean the settlement figure will be lower than I thought it would be. I expected it to be somewhere between £55k and 60k, even though I have paid 37,000 over the 5 years.

So does anyone know if I will still have a nasty shock when it arrives?

Thanks

savvykaz

Hi purpleparrot,
I've recently sent off request to Firstplus for settlement figure - requested Tuesday 31st August, received figure Monday 6th September. We borrowed £41,000 6 years ago and today still owe £26,000, having already paid back over £44,000. We did however receive £7,500 last year as per the cashback figure paid out after having the loan for 5 years. HTH

di3004

Hi there

Hope your settlement figure arrives soon.

If you taken out ppi insurance then that would have been added within the loan as well, and therefore be included in the settlement figure to what i am aware of.

Hopefully someone will clarify on this, good luck.

purpleparrotuk

Thanks for the replies. It came the other day.

It was near enough as I thought at £54,600. Dunno if that is using the correct method or the Rule of 38 though.

fozmcfc

Can I ask as I am genuinely interest why do people borrow £50,000 +, particularly at such high interest rates ?

purpleparrotuk

fozmcfc wrote: »

Can I ask as I am genuinely interest why do people borrow £50,000 +, particularly at such high interest rates ?

Because maybe they see it as the only way to reduce monthly payments at the time.

I would not recommend getting a secured loan from a third party especially on a variable rate. But I am stuck in it now for 10 more years :mad:

fozmcfc

So basically consolidation of other debts.

I remember the advertising with Carol Voderman and of course the smaller monthly payment. I guess people are desperate but interest is truly shocking.

I was quite nervous at taking out an unsecured £7500 loan a few years back, I couldn't imagine having to pay back £50,000 over 15 or 25 years.

fozmcfc

Just taken a look on youtube at a 5 year old advert with Voderman, it seems quite ironic that her being a maths brainbox, can actually advertise the following.

£10,000 loan over 25 years = £24,300 payback

or

£30,000 loan over 25 years = £72,900 payback.

The above and the wording in general throughout the whole advert, really just screams we encourage unresponsible borrowing.

halifax71

savvykaz wrote: »

Hi purpleparrot,
I've recently sent off request to Firstplus for settlement figure - requested Tuesday 31st August, received figure Monday 6th September. We borrowed £41,000 6 years ago and today still owe £26,000, having already paid back over £44,000. We did however receive £7,500 last year as per the cashback figure paid out after having the loan for 5 years. HTH

Is there any reason you've not reclaimed the PPI? It was worthless, it was missold, you're still paying for it.

For info according to the Financial Ombudsman 99% of Firstplus PPI policy complaints are deemed to have been missold.

savvykaz

Not sure I can prove it was mis-sold?

di3004

Hi more on mis selling of ppi on the link below......
There is a checklist as well.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#checklist



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