FirstPlus Adivce

PhoenixRising_3

I am taking a FirstPlus loan for £45000. I have read with horror the stories about early repayment penalties and folk still being left with the full balance after many years of payments. The T&Cs state that the early repayment penalty is 2 months interest plus "interest at the rate in force at the settlement date for the epriod from the settlement date up to the end of the agreement less any rebate calculated in accordance with the formula set out in the regulations made under the consumer credit act 1974"
Is this okay? or am i likely to be stung badly?

arnie&caseysma!

What ever you do, DO NOT take the payment protection insurance. This is obtained by them from another company and the premium is front loaded onto your loan and you pay interest on the full amount of the PPI! Extreme con.
I had a Firstplus loan and when I realised that I was paying about £75 per month more than I would have been without the PPI I called and asked for it to be cancelled - my payments would have gone down less than £10 per month! Furious I then got rid of them as quickly as possible! And then they still continue with their "customer care" calls as they can't see from their system that you are no longer a customer of theirs.

If there is any other way that you can possibly work things out before considering a secured loan then do so. There are many people on here that are excellent when it comes to advice so please consider that before the secured option.
The best way to do this is to post your SOA to help see where you can possibly be helped if you are struggling.

PhoenixRising_3

thanks for the advice re PPI - I'm not taking it. A secured loan is my only option just now (been turned down for unsecured) and need to get back on my feet after a business collapse. I intend to pay it off early in a couple of years once my credit record recovers and I can remortgage. No CCjs or Defaults, but a lot of missed payments.

h4nym

PhoenixRising wrote:

plus "interest at the rate in force at the settlement date for the epriod from the settlement date up to the end of the agreement less any rebate calculated in accordance with the formula set out in the regulations made under the consumer credit act 1974"

That sounds like a monster to me! What is said formula set out in the CCA 1974? Don't take FirstPlus' advice on this - get the CAB to work it through with you.

Did I hear that FirstPlus were now part of Barclays?

H