First Plus - DIY vs 3rd Party Company

stuartbrookes

All,

I need some advice. I've worked out, ie, rung them after seeing their name all over this forum, that I was mis-sold PPI.

I borrowed £25,100 off them over 60 months, there was a PPI amount of £5,002.43 on top of this. I paid the loan off after 13 months thanks to help from my parents.

Here is the dilemma, do I write to them myself (knowing it'll be a painful experience that they will drag out and offer settlements on) or do I use a 3rd party company that a friend used.

This 3rd party company charge 30% inc VAT, so they'd take circa £1,800... However I'd get £3,200 for doing nothing.

Or, I do it myself knowing it'll take longer and they'll offer settlement after settlement?

Does anyone have any advice?

stuartbrookes

As an addendum, I took this loan out in 2006 so really can't remember how I was sold PPI, whether it was the 'tick this to opt out of PPI' box or anything else.

I've seen on another thread to base my query on the following

"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.

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 loan."

Would this be correct, my loan was only for 5 years anyway...

marshallka

If your loan was only for 5 years then you could not use the "the PPI only covered 5 years" but even if you had the cashback PPI with your loan you would only get back (if you never made a claim that is) the actual PPI amount and not all the interest on the single premium. If all the others apply to your loan then you really should try to do this yourself and save the 30%. The claims companies only do exactly the same thing.

Was it actually firstplus that sold you the loan and PPI because if you used a broker then it is the broker you complain to?

stuartbrookes

Thanks for the advice... I believe it was FirstPlus that sold me the loan, I don't use brokers, just things like MoneySupermarket and all they do is put you in touch directly as far as I'm aware.

dunstonh

Here is the dilemma, do I write to them myself (knowing it'll be a painful experience that they will drag out and offer settlements on) or do I use a 3rd party company that a friend used.

The third party company you would use has to give them the same information you would and uses the same free of charge complaints process you would and would get the same treatment as you would. Or indeed, if you use a black listed claims company, you may actually find the firm behaves worse as they try harder to reject your complaint as they dont like your claims company.

I believe it was FirstPlus that sold me the loan, I don't use brokers, just things like MoneySupermarket and all they do is put you in touch directly as far as I'm aware.

If you were not "sold" the policy but chose to buy it then your level of consumer protection is reduced. You cant claim mis-sale if you mis-buy unless you can show fault in their marketing.

amersall

If you use a company then they will charge you the % on the whole of the PPi and not just the amount you are refunded, when you settled the loan you will have had a rebate of the insurance, this will be taken off your win, but you will still pay the company the % for that too, plus vat.

stuartbrookes

Amersall,

Thanks for that... I certainly had no rebate from FirstPlus on the PPI when I settled the loan, the loan was settled after 13/14 months of the 60 month loan. I don't know if that was a reason, but there was definitely no PPI rebate from FirstPlus.

stuartbrookes

However, as a further, the company I'm going to use (I had a friend also use them and they got much further than she did), are only charging a % of what they recover on my behalf.

marshallka

stuartbrookes wrote: »

However, as a further, the company I'm going to use (I had a friend also use them and they got much further than she did), are only charging a % of what they recover on my behalf.

When was your loan taken out and as it was only 5 years was it actually a secured loan? I have not heard of Firstplus 5 year loans TBH?

This 3rd party company charge 30% inc VAT, so they'd take circa £1,800... However I'd get £3,200 for doing nothing.

If you PPI was a single premium added to the loan it would not have just been the £5000 that you mention in your first post. It would be £5000 with 5 years interest on it at whatever rate your loan was. Was the £5000 you mention including interest or not?

Thanks for that... I certainly had no rebate from FirstPlus on the PPI when I settled the loan, the loan was settled after 13/14 months of the 60 month loan. I don't know if that was a reason, but there was definitely no PPI rebate from FirstPlus

Did you have a breakdown of the settlement figure. I would be almost certain there would have been a rebate against your PPI when you settled (often not a fair one but as this was 2006 there would have been one). The rebate is not paid over to you, its calculated in the settlement figure/interest and its usually listed as "rebate/refund against PPI?

stuartbrookes

My loan started on 8th Feb 2006, £637 over 60 months, and was cleared on 1st September 2006, after just 8 months. I thought it was longer but have gone on to Experian for the exact account details. It was definitely a 5 year loan and was classed as a 'secured loan', Experian list it as a "second mortgage (secured loan)"

When I think back now, I didn't realise the PPI was a single premium to be honest, I just thought it was incorporated. The £5,002.43 that was the value of the PPI does not include any interest paid on that amount, so I know the total figure is going to be greater than £5,002.43... What I don't know if whether I technically only paid interest for 8 months that before settling or whether I paid 60 months interest up front or not.

I've got none of the settlement paperwork, it was a long time ago, over 5 years ago now. I settled and paid over the phone to be honest, as I vaguely remember my parents transferring all of the money into my account. I'm not aware of receiving any rebate from the PPI and when I spoke to FirstPlus, they certainly did not mention any rebate and told me that my PPI was £5,002.43 and did not say to me that I'd received any form of rebate. If it was included in the settlement figure, then I am completely unaware of that.

Does any of that make any difference then?

amersall

Marshallka,I have never heard of a 5 year secured loan with FP either!!


to stuartbrookes, If you had ppi on this they will have given you a small rebate of the ppi when you settled, as it is only a 5 year loan, i dont think the reasons for mis sell apply to this loan.