First Plus Offer letters issued

Niggly_2

Hammy11 wrote: »

Hi

After reading Nigglys warning about checking FP figures are correct, can someone check my offer that I received in the post today please?
Here are the original details:
Cash Loan £30,000.00
PPP Loan £7347.00
Total loan £37347.00
Initial monthly repayments £300.32
Current monthly repayment £318.00
Number of repayments 240 months
date loan signed 14/10/2006
PPI complaint mailed on Oct, 2010

details on offer letter:
A Refund of payments made for PPI £3634.55
B 8% per annum simple interest £563.16
C Total refund (= A + £4197.71

D Original PPI Policy £7347.00
E Interest incurred due to PPI £2840.38
F Total value of loan reduction for PPI (= D + E) £10187.38

Refund received via cheque
H Outstanding balance £33167.88
I Revised loan bal without PPI ( = H - F) + A £26615.04
J New monthly loan repayment £257.15

Does this make sense?
Even though we're pleased with the offer, I want to make sure we're getting back what we should - does this seem accurate?
We pay £60 PPI insurance which is due to end in Oct this year then we'll be finding a much cheaper alternative!

Thank you in advance!

£318 x 20% = £63.60
New payment is 318 - £257.15 = £60.85

:j:j:j:j:j:j:j:j:j:j

Congrats the first correct one I have seen as I said the payment has to come down by roughly 20%.

I assume you will recieve a cheque for Total refund (= A + £4197.71
N

Niggly_2

Dizzywithmoney wrote: »

Hi

As I mentioned the other day I got my offer letter from First Plus and to be honest was pleased with it - never even doubted that it would be wrong, just annoyed with myself for going with a company but it was the first one that I did. I never told you about the calculations but anyway they are as follows:

Original PPI POlicy - £15,183.80
Interest incurred due t PPI - £2,382.67
8% Simple interest - £4,094.21
Less early settlement - £2,274.83 (we paid this off after around 2 years)
Total amount offered £19,385.85

I am totally happy about this - apart from the 25% we have to pay the claims company of course!!!

This is different scenario the loan was repaid so easy to calculate.

Happy days indeed.

N

Hammy11

Great - I thought it was but just wanted someone to double check - thank you so much :beer:

buddylove37

Hi
I would be really grateful if someone could check the figures on my first plus offer letter.

A - Refund of payments made for PPI = £1841.57
B- 8% per annum simple interest = £211.16
C - Total Refund A+B = £2052.73

Calculation below shows how refund will affect loan;
D - Original PPI Policy = £3986.00
E- Interest Incurred due to PPI = £982.03
F - Total Value of Loan reduction for PPI premium and Interest (D+E) = £4968.03

If I take refund as cheque, details of revised loan amount are as follows;
G - Outstanding Balance of loan = £18,764.26
H - Revised loan balance without PPI if I take refund as chq (G-F)+A =£15,637.80
I - New monthly loan payment = £210.59

We currently pay £251.84 per month
Original Loan amount was for £20,000 + PPI £3986.00 Total = £23,986.00

gadgets.loco

gadgets.loco wrote: »

Thank you Niggly - no cashback has been taken and the outstanding balance £46,699.71 is for both the cash and PPI loan, so your calculations are spot on.

I did call Barclays and the person that answered my call said that he did not have access to the letter sent so has arranged for a call back within 48 hours :mad:.

Based on my initial suspicions and supported by your calculations, I will not sign the acceptance form until they correct the error on recalculated monthly payment amount.

I will also follow up on the the part of the acceptance form that indicated that the second cheque will be applied against the loan instead of being sent to me.

Thank you once again Niggly for redoing the calculations to determine the correct monthly payment amount.

Just an update, I finally had a call back from Barclays yesterday afternoon after doing a follow up call yesterday morning (the person I spoke with in the morning said that there was no record that I requested a call back last week). The person who called back acknowledged that the revised monthly repayment was incorrect and that they will send a revised one by Friday this week. He was not able to provide me with the recalculated amount though.

Niggly_2

gadgets.loco wrote: »

Just an update, I finally had a call back from Barclays yesterday afternoon after doing a follow up call yesterday morning (the person I spoke with in the morning said that there was no record that I requested a call back last week). The person who called back acknowledged that the revised monthly repayment was incorrect and that they will send a revised one by Friday this week. He was not able to provide me with the recalculated amount though.

I knew it was wrong:mad:. Brilliant news for you:T.Lets just hope they stick in the right interest rate this time.:eek:

I say again do not trust FP to get the redress figures correct at the momemnt I have only seen one offer that is correct. They rely I assume on a spread sheet data entry system that if the wrong data is put in a spurious calculation is kicked out.

PLEASE make sure that if you havent recived cash back that future payments decrease by the ppi you were paying (C 20% if you cant remember).

If you are at all worried then post up the figures and I will check them.

N;):cool::beer:

Niggly_2

buddylove37 wrote: »

Hi
I would be really grateful if someone could check the figures on my first plus offer letter.

A - Refund of payments made for PPI = £1841.57
B- 8% per annum simple interest = £211.16
C - Total Refund A+B = £2052.73

Calculation below shows how refund will affect loan;
D - Original PPI Policy = £3986.00
E- Interest Incurred due to PPI = £982.03
F - Total Value of Loan reduction for PPI premium and Interest (D+E) = £4968.03

If I take refund as cheque, details of revised loan amount are as follows;
G - Outstanding Balance of loan = £18,764.26
H - Revised loan balance without PPI if I take refund as chq (G-F)+A =£15,637.80
I - New monthly loan payment = £210.59

We currently pay £251.84 per month
Original Loan amount was for £20,000 + PPI £3986.00 Total = £23,986.00

I would have expected the new figure to read More like £201.59 as this is 20% reduction.

Me thinks a typing error. I would ring back and tell them that future payments will decrease by 20% and then it should be £201.59 not £210.59.

Here we go again:mad:

N:beer:

MUM40

hello, hope you can help with the figures that we have been offered by FP. We have already received the cash back of our policy

Loan GBP 60,000.00
cashback loan : 11,958.00
Current payment of 785.00 over 180 months

details from letter received

a) Final PPI Policy less cashback already received : 11958.00
b) interest incurred due to PPI : 6679.87 = 6687.61
c) less previous claim = 0.00
d) less ealy settlment = 0.00
e)total value of loan reduction for PPI Premium & interest (a + b - c -d ) = 6679.87 = 6687.61
f) refund of payment mades towards PPI premiums on current loan = 9390.23 = 9390.23
g) 8% per ammum simple interest -= 1811.58

if we choose refund as cheques
h) outstanding balance 55229.59
i) total value of loan reduction for PPI premiums & interest on current loan (e) - 6679.87 = 6687.61
j) revised loan payment without PPI (if receive payment by cheque) ( = H - I) + F 57939.95 = 57932.21
k) new monthly payment 829.47 = 830.02
(this has increased our payment from 785.00 to 829.47 ?) new payment = 830.02

If we choose to refund to the balance of loan
h) outstanding balance = 55229.59
i) total value of loan reduction for PPI premiums and interest on current loan (e) 6679.87 = 6687.61
j) revised loan blanace without PPI if we choose to offset on current loan ( = H - I ) 48549.72 = 48541.98
k) new monthly balance GBP 696.00 = 696.56

i will also be phoneing FP tomorrow to ask why our premiums have gone up

thanks in advance for your help in this matter.

New offer received from FP today, but if we decide to take the cheques then our monthly payment goes up.
how can this be, surely our payment will need to go down by the monthly premium that is due?

I need to send a letter/contact them and ask why, but does anybody have some questions/pointers that I can ask FP

Thanks for all your help

amersall

Hi there,you are better off having the refund taken off the loan,your payment comes down and the ppi is taken off the loan,this will save you thousands in interst over the remaining term.
This will come in very handy when FP raise the rates again!! this will cushion you for a while.

Your payments go up if you take the refund back,as the ppi is still on there to term end with the interest,this is the way they do it as you have had the cashback and they cant give it to you twice.

MUM40

amersall, thanks for your reply, PPI was only valid for 5 years and not til term end.
how come the payment has gone up rather than down, surely the loan amount would be reduced from the payment we are making?