FSCS success + cancellation of policy within 90 days to get refund of NCB ?

leesykoi

Hi,

Apologies i did post this under another thread but i got tired and very confused reading through 400+ pages and don't seem to be any further forward.

I took out a secured loan with FirstPlus (brokered through Help Personal Finance) in Sept 2007. The loan was the typical one whereby it was over 10yrs with PPI only covering the first 5yrs and the No Claims cashback offer after 5yrs.

Well it was surely a mistake taking this out (in hindsight) and i have contacted FSCS after an initial brush-off from FirstPlus and finding out that Help Personal Finance are no longer trading.

My case was referred to Deloitte as HPF are now classed as in default.

Cash loan was £35k with PPI of £8,571

Just received a letter from FSCS offering compensational loss of £2,456.68 (cheque received for £2,211.09 - 90% as above the £2k threshold).

This is great news but i have a question !!!!!

In the FSCS letter it states £8,571 as a elligible benefit (ie a no claims discount) and that 'if you choose to cancel your protection insurance within 90 days of the date of the letter we may be able to refund to you the amount of No Claims Bonus we have deducted'.

My question is - has anyone done this with Firstplus and FSCS ie trying to get refunded the no claims bonus that i am eligible for next year ??? If you have how have you gone about it ???

Obviously it would great to recoup the £8,571 or as much of this as possible so i look forward to any info and apologies over the long post however thought it worthwhile to present all the facts in trying to find out how i can recover as much of this upfront PPI as possible.

Many thanks in advance for anyone that has been in this situation.

Thks.

Lee.

amersall

Personally if i were you, i would cancel the policy and put any money you get back off the loan, all you are doing is (even getting the 5 year payout) is paying back extortionate interest on what remains of the loan term.
You will have paid 5 years of ppi with interest already and will pay thousands more before the end of the loan.
Also, the way FP increase interest rates "because it is prudent for their business" your monthly payment will go up even higher once the BOE raise interest rates.

Of course this is your business, and you may need the cash for other things, but you will end up paying back a hell of a lot of interest on this payment, and i dont think it is worth it in the long run, just for short term gain.

one thing you could do, is ring FSCS and ask if you cancel the ppi and take the benefit but pay it off the loan, ask if FP will reduce your balance by the ppi amount and also reduce the monthly payment by the monthly ppi amount, as this will save you even more over the longer term.

leesykoi

Thks for the reply Amersall.

I've sent a request to Firstplus to cancel the policy and confirm in writing that no benefit has been obtained with the policy. When i get this i will recontact the FSCS to see if they can get me my refund so i can then redress the loan i have from FP.

amersall

leesykoi wrote: »

Thks for the reply Amersall.

I've sent a request to Firstplus to cancel the policy and confirm in writing that no benefit has been obtained with the policy. When i get this i will recontact the FSCS to see if they can get me my refund so i can then redress the loan i have from FP.

Wise choice, this will be a poke in the eye for FP as they will not get the extra thousands of interest from you.
Dont forget to get the loan reduced by the ppi monthly amount and the whole ppi taken off your balance.

BBJay246

How did you get on Leesykoi?

I'm in a similar predicament but unsure what to do.

I called the FSCS today as I had not heard anything on my claim since February, only to be told that they had paid out and a cheque was sent out on March 15th. I told them I had not received it and they stated they would cancel the previous cheque and send out another.

I then searched the house, only to find the unopended envelope stuffed in a cupboard (by the misses!!!!!!!!) :eek:

I'm presuming my 90 days is almost up (unless the FSCS reset it for the new cheque).

How quick did you receive a confirmation letter from FirstPlus after cancelling your PPI??

leesykoi

Hi BBJay246,

Well i contacted Firstplus who have offered a discount of £217 on my policy which is just to mature next year for in excess of £8k.

I have contacted the FSCS to ask the size of the discount they could get for me if i cancel now and they could not answer. They did say to put the request in writing so i could make an informed decision as to whether or not i cancel the policy and pay this off the loan OR wait for the cashback (ideally i want to get as much of the £8k as possible and pay this off the loan).

Sorry no further forward but be interested in what you do.

Thks.

Lee.

amersall

leesykoi wrote: »

Thks for the reply Amersall.

I've sent a request to Firstplus to cancel the policy and confirm in writing that no benefit has been obtained with the policy. When i get this i will recontact the FSCS to see if they can get me my refund so i can then redress the loan i have from FP.

Hi there, you should go through FSCS and cancel the policy, you will get the no claims back that they say in the letter to you.

You have had over 2,000 back and i think you will get a nice sum for the no claims.
Waste of time contacting FP they are rubbish keep this with FSCS.

amersall

leesykoi wrote: »

Hi BBJay246,

Well i contacted Firstplus who have offered a discount of £217 on my policy which is just to mature next year for in excess of £8k.

I have contacted the FSCS to ask the size of the discount they could get for me if i cancel now and they could not answer. They did say to put the request in writing so i could make an informed decision as to whether or not i cancel the policy and pay this off the loan OR wait for the cashback (ideally i want to get as much of the £8k as possible and pay this off the loan).

Sorry no further forward but be interested in what you do.

Thks.

Lee.

Put it in writing to FSCS to cancel the policy.
Did FP confirm in writing that you have not claimed on this policy? if they did send a copy of this to FSCS along with your letter.

amersall

BBJay246 wrote: »

How did you get on Leesykoi?

I'm in a similar predicament but unsure what to do.

I called the FSCS today as I had not heard anything on my claim since February, only to be told that they had paid out and a cheque was sent out on March 15th. I told them I had not received it and they stated they would cancel the previous cheque and send out another.

I then searched the house, only to find the unopended envelope stuffed in a cupboard (by the misses!!!!!!!!) :eek:

I'm presuming my 90 days is almost up (unless the FSCS reset it for the new cheque).

How quick did you receive a confirmation letter from FirstPlus after cancelling your PPI??

Ring FSCS and ask if your 90 days are up (as you did not get the cheque) if they are not then you need to put it in writing that you wish to cancel the ppi and want your ncb.
First get in touch with FP and ask for a letter saying you have not claimed on this policy and send a copy to FSCS with a letter stating you wish to cancel this policy.

leesykoi

amersall wrote: »

Put it in writing to FSCS to cancel the policy.
Did FP confirm in writing that you have not claimed on this policy? if they did send a copy of this to FSCS along with your letter.

Thk you Amersall,

When i asked the FSCS over the phone they could NOT confirm what refund i would get for my NCB. Totally understand they cannot impart advice i simply want to understand how they calculate the level of NCB refund or get a value on this. Then i can make the decision as to whether i claim the refund now OR wait for the NCB to mature (either way i will be paying this off the Firstplus loan but if i wait till next year i will be paying more interest). Ideally i want to make an informed logical decision but the FSCS do not seem able to answer simple questions, hopefully since i have put this in writing i will get a suitable response that i can act on.

All so very frustrating !!!!!

BBJay246

Thanks for the update Lee,

I spoke to Firstplus last week regarding cancelling the PPI and they said they will send out a quote stating how this would affect the payments if I choose to go ahead.

I also called the FSCS and had a similar response to you (Amersall - they did confirm the 90 days will restart from the day i receive the replacement cheque).

One thing has been confusing me, If I decide to cancel the PPI and ask FSCS to reclaim this and reduce it from the Firstplus loan, can I still cash the original cheque (£1100) now and ask for only the NCB to be reduced from the loan or must I leave it all for FSCS to recalculate?
I understand it would be better in the longrun to pay as much of the loan off as possible but the £1100 would come in really handy at the moment!!!

J