Central Trust and Firstplus

nutty_nat

Hi

We took out a loan with Central Trust as the broker at the end of 2005 the loan was with Firstplus the ppi was added onto the loan which was £10,000, we topped the Firstplus loan up in 2006 and another £20,000 ppi was added to the loan.
At the end of May we put in a claim with Central Trust and Firstplus, yesterday we received a final offer from Central trust which offered us £2,177.78 and that figure is including interest. I rang the complaint handler yesterday and asked him how he came to this figure: he told me because my husband had answered no to the question do you have any other existing arrangements they took it that he had no employer benefits when he had all the benefits from his company, my husband didn't understand the question he had been asked. Also when my husband was asked if we had life cover he said yes for himself and no for me when we did both have life cover and terminal illness benefit.
I called the FOS yesterday for advice and they have now took on my case they said it could take up to a year to resolve, do you think I have done the right thing not accepting the offer and was this a good offer from Central trust.

di3004

nutty_nat wrote: »

Hi

We took out a loan with Central Trust as the broker at the end of 2005 the loan was with Firstplus the ppi was added onto the loan which was £10,000, we topped the Firstplus loan up in 2006 and another £20,000 ppi was added to the loan.
At the end of May we put in a claim with Central Trust and Firstplus, yesterday we received a final offer from Central trust which offered us £2,177.78 and that figure is including interest. I rang the complaint handler yesterday and asked him how he came to this figure: he told me because my husband had answered no to the question do you have any other existing arrangements they took it that he had no employer benefits when he had all the benefits from his company, my husband didn't understand the question he had been asked. Also when my husband was asked if we had life cover he said yes for himself and no for me when we did both have life cover and terminal illness benefit.
I called the FOS yesterday for advice and they have now took on my case they said it could take up to a year to resolve, do you think I have done the right thing not accepting the offer and was this a good offer from Central trust.

Hi there

Just also left you a pm on the other thread, but no worries, I would ask if they will provide the evidence of your hubby saying no, they must have these details to have told you this, so should therefore supply the evidence on request.
Good luck.

marshallka

You say you topped the loan up in 2006? Often this is then direct with Firstplus for top ups so have you made a complaint to FIrstplus for the top up loan?
Also did the PPI actually cover the whole of the loan or only the first 5 years of it? This alone is a reason that FOS would look down on these policies and also was it explained to you that interest would be added on the premiums for the whole term of the loan? You really need to add other reasons for your misselling if you did not know this and most complaints of this type are actually upheld if they need to go to FOS. (in fact 99% of Firstplus complaints are upheld). I know you had the other reasons too but the ones listed above (if they apply) are much better. The PPI is actually another loan to pay the insurer up front so VERY costly when only covering 5 years of an any length loan.

Also you really need a breakdown of the settlement of the first loan before topping it up so you can see if Central Capital is in fact a fair offer? As this iwas taken out in 2005 they would have had to follow certain rules when settling your loan and giving a PPI rebate.

nutty_nat

marshallka wrote: »

You say you topped the loan up in 2006? Often this is then direct with Firstplus for top ups so have you made a complaint to FIrstplus for the top up loan?
Also did the PPI actually cover the whole of the loan or only the first 5 years of it? This alone is a reason that FOS would look down on these policies and also was it explained to you that interest would be added on the premiums for the whole term of the loan? You really need to add other reasons for your misselling if you did not know this and most complaints of this type are actually upheld if they need to go to FOS. (in fact 99% of Firstplus complaints are upheld). I know you had the other reasons too but the ones listed above (if they apply) are much better. The PPI is actually another loan to pay the insurer up front so VERY costly when only covering 5 years of an any length loan.

Also you really need a breakdown of the settlement of the first loan before topping it up so you can see if Central Capital is in fact a fair offer? As this iwas taken out in 2005 they would have had to follow certain rules when settling your loan and giving a PPI rebate.

Thank you so much for that , we have made a complaint to Firstplus as well about the top up loan but we are waiting to hear from that one. For the top up loan we have included about the ppi only covering us for five years and also we included this in the Cental trust questionnaire. But until you told me just now I didn't know that the interest was added on to the premiums over the term of the loan. Horrified!!!!!!!!!!!!

marshallka

nutty_nat wrote: »

Thank you so much for that , we have made a complaint to Firstplus as well about the top up loan but we are waiting to hear from that one. For the top up loan we have included about the ppi only covering us for five years and also we included this in the Cental trust questionnaire. But until you told me just now I didn't know that the interest was added on to the premiums over the term of the loan. Horrified!!!!!!!!!!!!

That is of course if it was a single premium.

Lets say you had PPI of £5000 added to your agreement and your loan was £15000. You have then in effect had a total loan of £20000 and interest is added to that amount making the PPI very costly when only covering your loan for the first 5 years. Also if you cancel the PPI throughout the loan you only get a rebate on the PPI premium and not all the interest added to the PPI. Very unfair!!!!


Good luck.

nutty_nat

nutty_nat wrote: »

Thank you so much for that , we have made a complaint to Firstplus as well about the top up loan but we are waiting to hear from that one. For the top up loan we have included about the ppi only covering us for five years and also we included this in the Cental trust questionnaire. But until you told me just now I didn't know that the interest was added on to the premiums over the term of the loan. Horrified!!!!!!!!!!!!

Sorry forgot to say that the insurance only covered the first five years of the loan :eek:

nutty_nat

marshallka wrote: »

That is of course if it was a single premium.

Lets say you had PPI of £5000 added to your agreement and your loan was £15000. You have then in effect had a total loan of £20000 and interest is added to that amount making the PPI very costly when only covering your loan for the first 5 years. Also if you cancel the PPI throughout the loan you only get a rebate on the PPI premium and not all the interest added to the PPI. Very unfair!!!!


Good luck.

Thank you for your advice we let you know how we get on with the FOS service for central trust and i will let you know how we get on with F/P when they reply to us. One other question do you know if we loose the FOS case do we then loose the £2177.78 offer made to us yesterday from Central Trust. The complaints officer for C/T tried to steer me away from going to the FOS for advice. Sorry for so many questions I am new to all this x

marshallka

nutty_nat wrote: »

Thank you for your advice we let you know how we get on with the FOS service for central trust and i will let you know how we get on with F/P when they reply to us. One other question do you know if we loose the FOS case do we then loose the £2177.78 offer made to us yesterday from Central Trust. The complaints officer for C/T tried to steer me away from going to the FOS for advice. Sorry for so many questions I am new to all this x

If Central Trust are putting you back into the position as if you never had the PPI then that is the missale complaint done and dusted with them but you will not know that until you get a breakdown of the offer. What is the wording of the their offer and is this complaint already with FOS and has an adjudicator been assigned yet?

You have to remember also that you did not HAVE to have the PPI if this was sold to you as conditional to the loan? Did you have a choice of taking it out? Did they explain it thoroughly to you? I am taking it that you really did not understand the PPI as you did not understand that interest was added? That alone is a missale if this was not explained and it was an advised sale.

nutty_nat

marshallka wrote: »

If Central Trust are putting you back into the position as if you never had the PPI then that is the missale complaint done and dusted with them but you will not know that until you get a breakdown of the offer. What is the wording of the their offer and is this complaint already with FOS and has an adjudicator been assigned yet?

You have to remember also that you did not HAVE to have the PPI if this was sold to you as conditional to the loan? Did you have a choice of taking it out? Did they explain it thoroughly to you? I a m taking it that you really did not understand the PPI as you did not understand that interest was added? That alone is a missale if this was not explained and it was an advised sale.

The total ppi cost added at the start of the loan was £9796 the offer yesterday was for £2177.78 which included £650.80 interest in that figure it says that it is there final settlement of the claim, so no they are not putting us into the position of never having the PPI. I lodged a complaint with the FOS yesterday so no adjudicator has been assigned yet. I don't think my husband understood the PPi at all. When i spoke to central trust yesterday they said they would not review the offer.
Thanks

marshallka

nutty_nat wrote: »

The total ppi cost added at the start of the loan was £9796 the offer yesterday was for £2177.78 which included £650.80 interest in that figure it says that it is there final settlement of the claim, so no they are not putting us into the position of never having the PPI. I lodged a complaint with the FOS yesterday so no adjudicator has been assigned yet. I don't think my husband understood the PPi at all. When i spoke to central trust yesterday they said they would not review the offer.
Thanks

I know you say that your total PPI was £9796 but when you took out the other loan it would have been that your old loan was cancelled and you would have had some rebate against your PPI and interest on it. You would need the settlement figure from that loan for any confirmation and how it was broken down.

When you then took out the other loan with Firstplus that opening balance would have included in it some of the PPI from the old loan too so again you would need the opening figure from that loan. It could be that your total from Central is correct if you only made a few payments.

nutty_nat

marshallka wrote: »

I know you say that your total PPI was £9796 but when you took out the other loan it would have been that your old loan was cancelled and you would have had some rebate against your PPI and interest on it. You would need the settlement figure from that loan for any confirmation and how it was broken down.

When you then took out the other loan with Firstplus that opening balance would have included in it some of the PPI from the old loan too so again you would need the opening figure from that loan. It could be that your total from Central is correct if you only made a few payments.

Thank you for your reply, I managed to speak to somebody at F/P this morning and the actual rebate we got back on the first loan was £2557.44. Does that help at all?