PPI Reclaim

Bobbage

Help

I have recently claimed against Firstplus for being sold PPI. It went to the FOS and they have upheld my complaint and have instructed to FP to settle with me which is great.

Bad news is I used a PPI claims company and they want 25% plus VAT. Now i knew this when i started using them but one area i don't understand is as follows

They say that the 25% comes off any compensation i recieve and any reduction in the loan. what is this?

Am i right to assume the amount the loan is reduced by in terms of having the PPI taken off? In which case this would be £6000 x 2? - - 25% off of £12000 is a lot

Help

marshallka

Hi, if your loan is still running then you will still be paying PPI and interest amongst your repayments. With it being a single premium added to your loan it is just another loan really running alongside your orginal one to pay for the premium up front.

You will get back to you in the form of a cheque the amount of PPI and interest you have paid already to date (less 25% - also I would check this is not 25% PLUS VAT as most are!!!) and then the rest of the PPI is taken from the loan and your repayments will reduce accordingly. As you used this company they should have made you aware (or in their terms and conditions) that they would also expect 25% of the money that is taken from your loan. (they look at it as they have reduced your loan by this much!!).

I sympathise with you using a company but you have and no doubt you could be left using ALL your refund that is paid direct and sometimes more too. They are a rip off and most of us here have always warned against these type companies on this forum.


WHat was the name of the company who you went with???

IF your loan is reduced by £6000 because of PPI (just using this figure as you used it above) then your payment to the claims company would be 25% of this amount (£1500) but as I say, check that this is just 25% and not 25% plus VAT.

Bobbage

Hi Marshallka

Thanks for the advice. I understand what you have said however they say that they charge a combination of 25% for both the amount of compensation recieived and the amount the loan is reduced by.

I am assuming that this is for example reduction of PPI by £6000, and thus reduction of total loan by £6000

So in there eyes would they see as £12000 reduction? because PPI has been refunded which was 6000 and loan has been reduced by 6000?

or am i totally wrong?

Thanks

marshallka

Bobbage wrote: »

Hi Marshallka

Thanks for the advice. I understand what you have said however they say that they charge a combination of 25% for both the amount of compensation recieived and the amount the loan is reduced by.

I am assuming that this is for example reduction of PPI by £6000, and thus reduction of total loan by £6000

So in there eyes would they see as £12000 reduction? because PPI has been refunded which was 6000 and loan has been reduced by 6000?

or am i totally wrong?

Thanks

Yes, I would say so. If your loan has had a reduction of £6000 and you have had £6000 back then they would want £3000 off you.

amersall

At least you will save on the interest on the ppi over the remaining term of the loan, as this is a rip off in its self.Well done on your win. love a win with fp.x

amersall

Hi marshalka, with reference to the ppi refund. if ( as a rough idea) the ppi of 6,000 is taken off the loan then the ppi refund paid back to op is reduced by the interest that has to go back on the loan, as the loan as reduced by this but if ppi was not there then the loan would not have reduced by that. (hope you can follow what i am saying) so if ppi paid to date with interest is 3,000 and the interest reduction has to go back on the loan, say 1.300 then the loan has not reduced by 3.000 so the company cannot charge 25% on this ? The op needs to have the final figures to see how the calculations are made and that the company does not try to get this extra, as this has gone back into the loan.

marshallka

amersall wrote: »

Hi marshalka, with reference to the ppi refund. if ( as a rough idea) the ppi of 6,000 is taken off the loan then the ppi refund paid back to op is reduced by the interest that has to go back on the loan, as the loan as reduced by this but if ppi was not there then the loan would not have reduced by that. (hope you can follow what i am saying) so if ppi paid to date with interest is 3,000 and the interest reduction has to go back on the loan, say 1.300 then the loan has not reduced by 3.000 so the company cannot charge 25% on this ? The op needs to have the final figures to see how the calculations are made and that the company does not try to get this extra, as this has gone back into the loan.

Hi amersall. Really cannot tell from figures posted other than to say yes, if the loan is actually reduced by 6k and the repayments total 6k then they would want 25% of the 12k. Anything else is difficult to work out without figures and that is what the claims company is being paid for.

I would say that whatever the loan is reduced by (even the interest part) the claims company will also want 25% of. They do not usually split the amount between interest and capital, they usually just get their money from whatever they have saved (yeah right) the client from paying or got back for the client.

amersall

marshallka wrote: »

Hi amersall. Really cannot tell from figures posted other than to say yes, if the loan is actually reduced by 6k and the repayments total 6k then they would want 25% of the 12k. Anything else is difficult to work out without figures and that is what the claims company is being paid for.

I would say that whatever the loan is reduced by (even the interest part) the claims company will also want 25% of. They do not usually split the amount between interest and capital, they usually just get their money from whatever they have saved (yeah right) the client from paying or got back for the client.

Cheers for thatxx

amersall

Bobbage wrote: »

Help

I have recently claimed against Firstplus for being sold PPI. It went to the FOS and they have upheld my complaint and have instructed to FP to settle with me which is great.

Bad news is I used a PPI claims company and they want 25% plus VAT. Now i knew this when i started using them but one area i don't understand is as follows

They say that the 25% comes off any compensation i recieve and any reduction in the loan. what is this?

Am i right to assume the amount the loan is reduced by in terms of having the PPI taken off? In which case this would be £6000 x 2? - - 25% off of £12000 is a lot

Help

Hi there, how many months were you paying ppi and what was the ppi monthly payment? as even with the 8%, because this company want so much (and you will have to pay vat on this) you may end up owing them!! sorry to be the merchant of doom and gloom, but that may happen.x