Starting a claim: Click/First Plus

jimowl

Hello all
My wife and i took a secured loan through Click in 2007. In order to get it the person we dealt with (i would say salesman) said we needed PPI. I recall saying we didn't but we were told that without it we would not get the loan (though of course none of that is in writing). The loan and PPI were actually provided via First Plus. We agreed after he sold us on the premise that if we didn't make a claim in the first 5 years we'd get all of our premiums back.

The loan was over 20 years (240 months) but the PPI appears to only be for the first 5 years and actually provides unemployment and sickness cover for my wife and life cover for both of us.

According to the documentation the PPP (as they call it) loan was for £14,204.20 and is payable for all 240 months at £147.28 (which i've just calculated comes to £35,347.20_pale_). The total loan is £58,000 + £14,204.20 = £ 72,204.20

Are we in a position to reclaim? Who from (Click or First Plus) and how much do we ask for? We've paid on time every month since the loan started 12/07.

If the answer is 'Yes, reclaim' then some advice on how would be great. And how long do these things take?

di3004

Hi and welcome and yes you are entitled to make a reclaim.

Someone I'm sure will work out the calculations for you, but these single policies are very costly and they are no longer selling this type of insurance. Most of us here have been in this position of having long term loans, and the ppi only protecting the first 5 years, but you would still be paying for the ppi for the life of the loan but then not protected after 5 years.

I assume the broker Click you used are active, the Click I used dissolved 2006, but they have a few Click loan businesses.

Make the reclaim to Click, by completing the reclaim questionnaire below link step 3, keep copies for yourself, send one to the business and allow 8 weeks for a decision.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3

Also a comment made on Martin's guideline page of these policies.

Is the insurance term too short?
Until banned in May 09, long term loans were often sold with a single premium policy lasting for a maximum of five years, no matter how long the loan is for. If you’ve now checked your policy and found that it does not cover the full term of your loan, but thought that it did, the salesperson should have pointed this out. If not go to the how to reclaim section

Good luck

jimowl

Thanks Di.

So I have filled in the Q'aire and printed it off. What next? I have all the paperwork so do i photocopy all of that and attatch it with a covering letter to Click along with the Q'aire?

What does my covering letter need to say? Do I ask them anything in particular, such as for all of our premium back? or for interest on top at a particular rate? compensation? Do I mention/threaten the Ombudsman? Or do I assume that they'll either do all of that anyway? TBH my assumption is that they'll tell us to take a running jump (and take 8 weeks doing so?). Is there a set timetable? I'm sure i read 8 weeks from acknowledgement?

Our PPI appears to be a lump sum added to the loan (so single premium up front) but then paid over all 20 years - that's confusing me. Does it mean we've paid the entire £14,204.20 or only £147.28 x 43months?

Thanks in advance folks.

jimowl

Anyone? (sorry if bumping is against the rules).

di3004

jimowl wrote: »

Thanks Di.

So I have filled in the Q'aire and printed it off. What next? I have all the paperwork so do i photocopy all of that and attatch it with a covering letter to Click along with the Q'aire?

What does my covering letter need to say? Do I ask them anything in particular, such as for all of our premium back? or for interest on top at a particular rate? compensation? Do I mention/threaten the Ombudsman? Or do I assume that they'll either do all of that anyway? TBH my assumption is that they'll tell us to take a running jump (and take 8 weeks doing so?). Is there a set timetable? I'm sure i read 8 weeks from acknowledgement?

Our PPI appears to be a lump sum added to the loan (so single premium up front) but then paid over all 20 years - that's confusing me. Does it mean we've paid the entire £14,204.20 or only £147.28 x 43months?

Thanks in advance folks.

Hi there

You do not actually require a cover letter if you don't want to, unless you do have further information to add, but yes take copies of everything you send, and send to Click as they were the ones who set up and sold you the loan/ppi, and allow 8 weeks for a decision.

You have been sold one of those single policies which are frowned upon, and are no longer sold. So its probably one of those ppi's that only last 5 years although you would be paying for the life of your loan, yet not protected after 5 years, you have a good case in my opinion, good luck.

amersall

jimowl wrote: »

Thanks Di.

So I have filled in the Q'aire and printed it off. What next? I have all the paperwork so do i photocopy all of that and attatch it with a covering letter to Click along with the Q'aire?

What does my covering letter need to say? Do I ask them anything in particular, such as for all of our premium back? or for interest on top at a particular rate? compensation? Do I mention/threaten the Ombudsman? Or do I assume that they'll either do all of that anyway? TBH my assumption is that they'll tell us to take a running jump (and take 8 weeks doing so?). Is there a set timetable? I'm sure i read 8 weeks from acknowledgement?

Our PPI appears to be a lump sum added to the loan (so single premium up front) but then paid over all 20 years - that's confusing me. Does it mean we've paid the entire £14,204.20 or only £147.28 x 43months?

Thanks in advance folks.

Hi there, you get the ppi back you paid to date with the interest on those, the total ppi is taken off your loan, and that can only be a good thing as this will save you thousands in interest over the remaining term, this also reduces any settlement figure you may ask for in the future.

amersall

This is what you need to put.

We/I believe we were mis sold the ppi on the above account number.
1)We/I were not told that the ppi was in effect another loan that was added to the original loan and was repayable over the loan term with interest.

2) We/I were not told that the ppi only covered us for 5 years, but the ppi would still be on the loan to term end with interest.

3) We/I were told that if we did not make a claim on the ppi ,after 5 years we would recieve the ppi as cashback, and to look on this as savings plan.. But were not told that the ppi would be on the loan to term end with interest and the cashback of ppi would not include the interest that we paid over the 5 years.

In line with the FOS recommendations it is requested that the overall situation be restored as if PPI had never been included. This will entail:
a) A refund of the monthly payments that have actually been paid towards the overall loan in excess of those that would have been needed, if the original loan had been sold without the PPI policy;
b) Restructuring of the loan going forward so that the amount owed, the monthly repayments, the term and the charges reflect those that would have applied, if the original loan had been sold without the PPI policy.
c) In addition, interest at the rate of 8% simple per annum to any excess payments made from the time each payment was made to the point that Firstplus pays them back to us. We/i believe we were not given enough information on this ppi to make an informed decision. Had we/i known the full cost of this ppi we would not have taken it.

Unless you can prove without doubt that this PPI policy was fair, reasonable and suitable for my/our circumstances we/I will require you to rearrange the loan as if PPI had never been included on the aforementioned loan.

kaz310

Hi

In 2008 my husband and I took out a loan from First Plus with PPI. They told us that if we did not make a claim in 5 years we would get half of the PPi money back, which will be about £7,500. Has anyone else come across this. I don't want to start a claim if this will jeopardise us getting half the money back. Having checked our paperwork it states we will get "upto" £7500 back. Where do we go from here???

di3004

kaz310 wrote: »

Hi

In 2008 my husband and I took out a loan from First Plus with PPI. They told us that if we did not make a claim in 5 years we would get half of the PPi money back, which will be about £7,500. Has anyone else come across this. I don't want to start a claim if this will jeopardise us getting half the money back. Having checked our paperwork it states we will get "upto" £7500 back. Where do we go from here???

Hi there
I settled my loan before it came to this stage, but your supposed to get a percentage of it back after 5 years if you've not made a claim for sickness/unemployment etc.
However, please don't quote me on this in case I am not right, but I understand people have still make a reclaim and have been successful, for being sold one of these policies anyway its frowned upon, because the ppi stops protecting the loan after 5 years, but you still pay for the remaining of the ppi for the life of the loan.

Hopefully someone will be along to clarify on this soon, good luck.

jimowl

I finally got this printed and posted. I sent it 'signed for' and it hasn't been delivered. Now normally i'd be steaming with the post office but I suspect it's because Click are no longer at the address I have for them (Click House, Bear Lane, Farnham GU9 7LG). Infact, some digging suggests they are liquidated.
The policy is actually with First Plus. Any suggestions as to what I do next?

di3004

jimowl wrote: »

I finally got this printed and posted. I sent it 'signed for' and it hasn't been delivered. Now normally i'd be steaming with the post office but I suspect it's because Click are no longer at the address I have for them (Click House, Bear Lane, Farnham GU9 7LG). Infact, some digging suggests they are liquidated.
The policy is actually with First Plus. Any suggestions as to what I do next?

Hi there
Yes contact the Financial compensation scheme (FSCS), when you taken your loan out with Click they were regulated, when I taken my loan out with Click in 2004 they wasn't, so you should have the opportunity to make a claim through the FSCS instead. (I understand Click finance are brokers only and not lenders of the loan).

I would call them in the working week and ask if they have the business listed, let us know and we can take it from there, good luck.
http://www.fscs.org.uk/contact-us/