First Plus and PPI calculations.

leeboy20

Hi everyone. This is my very first post.
I have a First Plus loan that has the usual PPI attached to it that was added to the loan in the usual First Plus manner.

The loan was taken out in 2006 for £25500 and with a PPI added of £6200. Grand total £32000

I'm currently paying £302 per month. This is over 25 years.
I've read on this forum that the PPI element is around 19% of the monthly payment or something to that effect. This would make it £58 per month. I called first plus and they say I can claim the PPI back next July (2011) and will get £6200.

My question is is it worth claiming through FOS now for a refund of any payments made, and the PPI taking off the loan. Or is it worth waiting until next July for the full PPI amount to be refunded? and then claiming as well after this?

If I'm working it out right (and I'm probably not!) then if I claim now as a mis-sold PPI then I wont get as much back?? (taking into account theres 9 months left to run) and with £58 per month of PPI I've currently paid £2958 only. Is this right? Or am I getting confused?

Thanks a lot for any help/advice.
Lee

di3004

leeboy20 wrote: »

Hi everyone. This is my very first post.
I have a First Plus loan that has the usual PPI attached to it that was added to the loan in the usual First Plus manner.

The loan was taken out in 2006 for £25500 and with a PPI added of £6200. Grand total £32000

I'm currently paying £302 per month. This is over 35 years.
I've read on this forum that the PPI element is around 19% of the monthly payment or something to that effect. This would make it £58 per month. I called first plus and they say I can claim the PPI back next July (2011) and will get £6200.

My question is is it worth claiming through FOS now for a refund of any payments made, and the PPI taking off the loan. Or is it worth waiting until next July for the full PPI amount to be refunded? and then claiming as well after this?

If I'm working it out right (and I'm probably not!) then if I claim now as a mis-sold PPI then I wont get as much back?? (taking into account theres 9 months left to run) and with £58 per month of PPI I've currently paid £2958 only. Is this right? Or am I getting confused?

Thanks a lot for any help/advice.
Lee

Hi Lee and welcome

Hopefully someone will have some advice for you on this one?

But I take it you mean you get a payout after the first 5 years if you've not made a claim?

To make a reclaim, you actually do this by pursuing the company that set up and sold your loan in the first place, and if they don't resolve in your favour by a final decision, then you can make a complaint to the FOS from there.

You always pursue the business first.

Good luck with this.;)

leeboy20

Thanks for the reply. I've been reading loads on forums and the Firstplus complaints website over the past few days. I've drafted a letter from a template one on another site.

I was mainly wondering if it would be in my interest to first get the normal refund of the policy from firstplus after the end of the 5 years. I havent made a claim or missed a payment so this should be ok. Or if it would be better to start the complaint route now and go the mis-sold PPI option, although I cant work out how much I'd get back this way.

Hope that explains a bit more!
Thanks
Lee

di3004

leeboy20 wrote: »

Thanks for the reply. I've been reading loads on forums and the Firstplus complaints website over the past few days. I've drafted a letter from a template one on another site.

I was mainly wondering if it would be in my interest to first get the normal refund of the policy from firstplus after the end of the 5 years. I havent made a claim or missed a payment so this should be ok. Or if it would be better to start the complaint route now and go the mis-sold PPI option, although I cant work out how much I'd get back this way.

Hope that explains a bit more!
Thanks
Lee

Hi Lee and your welcome.

Well this is a complaint alone being sold one of these costly policies and I do believed that lots have gone for the reclaiming, but maybe its best to see what others say first on this.
I don't really know what to suggest in this case.
Have you also posted up to ask this question over at the firstplus complaints website as well?

Di

marshallka

I personally would get your complaint in now. I bet it will all be done and dusted for the WHOLE premium and interest on it back before July 2011 (firstplus complaints at FOS usually do win). If you wait then it could be that the complaint for the whole amount is waiting until 2012.

leeboy20

Thanks for the replies.
I think I'll go for a complaint now. Is there any way to calculate how much I'd get back (if won) after 51 payments of £302 per month on a loan of £25500 and PPI of £6200??

I'm confused with all the calculations and figures, and the 8% interest etc.
Thanks
Lee

di3004

Thanks Marshallka, I didn't know for defo what to suggest but yes it makes sense to put in a reclaim, like you said it would be all done and dusted by then.;)

Good luck Lee.

leeboy20

Thanks for the advice.
I think I'll give the FOS a ring to ask for advice as well.
Maybe they can calculate exactly how much ive paid towards the PPI as 20% of my current monthly payment only comes to £60 per month. This is therefore £3000 I've paid.

FP say I'll be getting a refund of £6200 next July. So wouldn't it be better to wait for the larger amount and then claim for mis-sell after this to have the amount removed from the loan balance?

Thanks

marshallka

leeboy20 wrote: »

Thanks for the advice.
I think I'll give the FOS a ring to ask for advice as well.
Maybe they can calculate exactly how much ive paid towards the PPI as 20% of my current monthly payment only comes to £60 per month. This is therefore £3000 I've paid.

FP say I'll be getting a refund of £6200 next July. So wouldn't it be better to wait for the larger amount and then claim for mis-sell after this to have the amount removed from the loan balance?

Thanks

It would be taken into account though, you would not get it twice. Its entirely up to you. They usually pay it over to you I think (If you actually qualify for it and get your claim in on time etc). I cannot see the difference and waiting another year or so after would mean another year or interest on your PPI. If you won misselling you would get back the PPI and the interest you have paid to date and the rest is taken off your loan balance.

leeboy20

Thanks. I understand I would not get the cheque sent to me twice. If i got the usual refund after 5 years, and then complained to FOS, would they not take the interest off of the total loan balance?

Thanks
Lee