First Plus interest rates!

cocker100

halifax71 wrote: »

This issue is expected to be given some media exposure in the very near future as it links in nicely with the PPI aftermath in that customers are going to foot the bill via increased interest.

The fact that FP were misselling ppi to virtually every customer isn't going to help in this matter.

They refunded our ppi without us even having to go to the FOS, it was that blatent. A lot of people got sucked into their "all premiums refunded after 5 years if no claim made" scam. (just dont check the smallprint!!!)

If they have to contact customers over it rather than waiting for complaints, I think the payout is going to be massive!

Cocker:)

halifax71

The PPI battle is all but won, this is now the aftermath.

The arguments that we have been putting forward for the last 2 1/2 years have all been proven accurate.

Rest assured all new borrowing will be just a bit more exprensive - which i've no major problem with as long as the customers knows what they're buying into.

Existing borrowing however is where the problem lies.

FirstPlus' explanation on the show was threefold: listen from 44 mins

http://www.bbc.co.uk/programmes/b011f26t

"the cost of loans depended on a number of factors"

"These include changes to the cost of funds, the risk of lending and the costs of operating of the account."

Firstly, rubbish, their cost of funding has reduced by over 80%.

Secondly, rubbish again, they no longer lend. Recoveries have also improved reducing their impairment provision rate.

Thirdly the account is automated and as evidenced in their accounts their Operating Expense has massively reduced over the last few years.

The simple fact is that they used to make £100m a year from PPI. Now they don't and they are having to refund most of it. If base rates hadn't fallen they would have posted a £100m+ loss in 2010 instead a of small profit.

Once base rates increase so will our APR's. There is no way Barclays are going to allow one of its subsidiaries to post a £100m loss, year on year, unless it is forced to.

Maybe if the OFT displayed an ounce of objectivity they would consider the customer rather than their own continued ability to discuss issues with businesses.

cocker100

Interesting Viewing!

It's funny how all the polititians are screaming out for banking reform and changes, yet nothing ever happens. The bloke from the BBA just summed up the whole system for me, totally refusing to accept that anything is wrong.

We'll just have to see what (if any) all this bad press does for the likes of FP. At least it names and shames them and makes more people aware of their bad practice.

Cocker:)

opinions4u

cocker100 wrote: »

We'll just have to see what (if any) all this bad press does for the likes of FP. At least it names and shames them and makes more people aware of their bad practice.

Of course, naming and shaming a lender that's closed to new business isn't really going to harm them, is it?

cocker100

opinions4u wrote: »

Of course, naming and shaming a lender that's closed to new business isn't really going to harm them, is it?

No, but it helps that the First Plus brand, and more importantly Barclays are outed in this way. The more people who know about their shoddy treatment of their customers the better in my view!

halifax71

As the Politics Show version is no longer available here is a Youtube version.

http://www.youtube.com/watch?gl=GB&v=SXJYJUrabwk

National TV next. :eek:

shafted_fpc

these arguments are sound, the frightening thing is that people just don't get it, or do any thing about it this rip off dwarfs ppi. As an example our loan started as 7.9% and is now 9.5% yet interest rates have fallan to 0.5% the spread has gone up from 3% to 9% this is costing us twice as much as the PPI each and every month, now had they gone from 3%- 4.5% spread well it would have been grumble grumble spit spit moan moan banks time but this trebleing of the spread is taking the p big time.

cocker100

Update on this thread:

To cut a long story short, FOS rejected our complaint citing the terms and conditions of the loan for their decision, despite confirming that they had received lots of similar complaints from 1st Plus customers!

Although simpathetic to our claim, they weren't interested in any other evidence, and advised to start our own legal proceedings if we believed that the agreement breached the UTCCR regs as they cant make decisions based on this.

We've appealed to an actual Ombudsman, but cant see what good it will do!

Cocker:)

cocker100

Still waiting for final Ombudsman decision on this.......................

cocker100

Update:

Letter from Ombudsman review team. Case passed to team in preparation for a final decision. No details of actual timescale, but said that it's normally a few months to a year!!!

The wait continues..............