first plus dpi

kaz310

We took a loan out in January 2008 with Firstplus for £65,000 over 300 months. The ppi loan totals £15,918 over the length of the loan but we've just found out that we are only covered for 5 years. Surely this isn't right . Although it states we get upto 50% of the ppi back after 5 years if we do not make a claim.
My questions are:- a) Is it worth reclaiming now before the 5 years are up. b) Will our monthly payments be cheaper and by how mucy. c) How much will be potentially get back. I've tried working it out but to be honest I'm struggling. I'd be really grateful if someone could advise me.

System

Yes it is worth claiming on the basis that you werent aware it was front loaded. We did exactly the same with them even though we had made 2 claims, they took the ppi off ,repaid what we had already paid and adjusted the payments.

di3004

Reclaim questionnaire here to send to the ones who mis sold ppi/set up your loan account.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3

These policies are costly and are no longer sold alongside loans etc, so with you being sold one of these is a complaint in itself, there is more details of this included on the link above, good luck.

robbiepeck

Sounds like mine.

I didn't realise, it only covered me for 5 years, but I'd be paying it for 25.

kaz310

Thanks for that. Firstplus was taken over by Barclays so do I send my complaint to them?

amersall

http://www.firstplus.co.uk/contactus/Pages/contact-us.aspx

Reasons for mis sell....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.

In line with the FOS recommendations it is requested that the overall situation be restored as if PPI had never been included. This will entail:
a) A refund of the monthly payments that have actually been paid towards the overall loan in excess of those that would have been needed, if the original loan had been sold without the PPI policy;
b) Restructuring of the loan going forward so that the amount owed, the monthly repayments, the term and the charges reflect those that would have applied, if the original loan had been sold without the PPI policy.
c) In addition, interest at the rate of 8% simple per annum to any excess payments made from the time each payment was made to the point that Firstplus pays them back to us. We/i believe we were not given enough information on this ppi to make an informed decision. Had we/i known the full cost of this ppi we would not have taken it.

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 aforementioned loan.


Forget the cash back, this is a win.....

amersall

The redress will be all ppi monthly payments to date back with interest and 8%, the whole ppi taken off the loan and your balance reduced, and your monthly payment will go down by the ppi monthly amount.

You have paid 40 ppi payments, so you will get that back.

amersall

kaz310 wrote: »

Thanks for that. Firstplus was taken over by Barclays so do I send my complaint to them?

First Plus is an umbrella company of Barclays, they have not been taken over by Barclays.

kaz310

What percentage is the interest in addition to the 8%. The loan is in joint names' my husband being lead name. can i submitted the claim or do we both do it or just hubby?

amersall

This will depend on your interest rate.
You both need to sign the complaint as it is in joint names, dont give them a reason to return it and ask for both sigs.

kaz310

We post our reclaim letter yesterday so firstplus should receive it today. Its a waiting game now. Is there a time limit to which firstplus have to respond?