PPI With first plus

needdebtadvice_2

Hello

Can anyone help me?

After loan after loan and monthly outgoings going through the roof, my girlfriend expecting, we decided to consolodate our existing outgoings, resulting in a £45,000 loan from first plus.

We were informed that we needed payment protection, and it was put to us that it was free for 1 month, then we needed to cancel it or pay the £110 a month to cover it, but could cancel it at any time after that.

When it was time to re-mortgage we chose to assess the finances again and try and save money, on trying to settle the loan, the figure we received was £56,500, as they added £11,000 for the ppi. when I tried to cancel the ppi on its own they offered me £3800 back, and we'd only had the loan for 8 months.

All this was not explained to us at the time and they seemed to feed on our desperation.


Any advice would be greatly appreciated.

petermb_2

Can I ask a few questions question?
How long does your employer pay you if you are off sick?
do you have any other form of health cover?

These are very pertinent questions as you may have been mis-sold the cover in the first place and there may be a way of getting your money back after the event

Rafter

Secured loans often have the whole of the insurance premium added up front and only a very small percentage refunded if you cancel early on.

This is mean because you end up paying interest on insurance you are not going to need for years.

In addition the insurance is very over-priced which is why the OFT is about to lay down tighter rules about how it is sold and advertised.

It does sound like you do have a misselling case on the following grounds:

1. You were told you needed payment protection: The insurance is for your benefit and not first pluses. If you are in a secure job and are prepared to take some risk then maybe you don't need the insurance and first plus could only advise this if they did a detailed review with you to ascertain your requirements.

2. You were told you could cancel at any time (which is true) but were not told the implications (which were buried in the small print of your agreement. You could argue they were selective with the truth - telling you all the sales patter without the implications financially.

If you dont' get anywhere with a misselling case you are probably better off keeping the first plus loan, paying off as much as you can afford to each year.

Good luck and any other readers take note - secured loans may reduce your payments but they may not solve the problem and could end up costing you dear in the future.

R.