First Plus Offer letters issued

amersall

MUM40 wrote: »

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?

Hi there, the ppi only lasted 5 years,but the ppi amount would be on your loan to term end with interest,that is why this type of ppi is unjust.

Your payment will go up if you take the refund as a cheque,you have had the ppi cashback,so they have to either put the refund to the loan and reduce the balance, thus reducing your loan by the monthly ppi amount, or give the refund back to you and leave the ppi on the loan,because they cant give it twice.

Plus,when you paid the monthly payment on the loan,your balance will have reduced (albeit not greatly) by what ever amount it reduced by,this included the ppi,so if you did not have ppi on the loan,then your loan would not have reduced by that so they have to put it back on.

On FPC site this is explained,as i could not fathom why some of my redress was put back to the loan??? until someone explained why,because i should not have had it if no ppi was on there.

Hope this makes sense!,Niggly may explain this better than i can
But i know what i mean

Niggly_2

MUM40 wrote: »

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
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
f) refund of payment mades towards PPI premiums on current loan = 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
j) revised loan payment without PPI (if receive payment by cheque) ( = H - I) + F 57939.95
k) new monthly payment 829.47
(this has increased our payment from 785.00 to 829.47 ?)

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
j) revised loan blanace without PPI if we choose to offset on current loan ( = H - I ) 48549.72
k) new monthly balance GBP 696.00

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

thanks in advance for your help in this matter.

iS YOUR INTEREST RATE 10% AND HAVE YOU GOT JUST UNDER 9 Years to go.

Thanks N

Niggly_2

a) Final PPI Policy less cashback already received : 11958.00
b) interest incurred due to PPI : 6679.87
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
f) refund of payment mades towards PPI premiums on current loan = 9390.23
g) 8% per ammum simple interest -= 1811.58

Are they saying you can have all these amounts as a cheque????????? This would be a different offer from the ones I have seen.

Thanks n

MUM40

Niggly

FP are advising us that we can receive the following back from them 11201.81 which covers 9390.23 for payments made in respect of the ppi and 1811.58 for the 8% simple interest

Niggly_2

MUM40 wrote: »

Niggly

FP are advising us that we can receive the following back from them 11201.81 which covers 9390.23 for payments made in respect of the ppi and 1811.58 for the 8% simple interest

Right that would be in line with similiar offers I have seen. Is your remaing term about 9 years and do you pay 10%.

Thanks Ian

MUM40

Niggy,

loan started july 2005, and not sure of % but we pay 785.00 per month

janerobinson55

Hi everyone, we are still waiting for our offer letter from first plus.

On looking at the offer letters other have had on this thread I was surprised by the amounts as I had calculated I would get a higher offer despite having similar PPI loan. We are due the cashback from this PPI in december.

Was i just being really naive when i read the initial letter regarding the offer that we woud actually get ALL the PPI premiums plus the interest on these premiums plus the 8% interest back as a cheque.

As i have noticed on this thread that people's interest has been taken off their actual loan (this made me feel quite cross :mad: )

Are we forced to take this interst off the loan rather than have it back as a cheque and why is this ???

Thanks for your help and sorry to sound a complete idiot

Jane

Niggly_2

a) Final PPI Policy less cashback already received : 11958.00
b) interest incurred due to PPI : 6679.87

For a start this seems very dodgy figure the ppi £11958 I have calculated you pay 10 % interest but rates have gone up so lets say i calclulate the interest at 8% over 15 years on £11958 that gives me a total monthly repayment of interest at £114 per month 70 months interest on this is £7980 at 9% its 8490 and at 10% £8995

So there is a mistake straight off the cuff this figure should be at least £8500

This would bring the payment down to just below £800 because it would reduce the outstanding balance by £2000.

They will say you have had the cash back thats why the figures look like this. That in fact is cowdung the reason is that your loan figure still includes the cashback you have had less the interest they have taken off. This means that you will still be paying interest on (in the case of these figure £11958 cash back-£6679 interest accrued on ppi refunded = £5279 now this will have dropped a little as some capital will have been paid off. If we assume its redcuced at he same rate as your main loan the thats about 25% reduction in capital value so the remainder on the loan is equivalent to £5279 x 75% = £3959 added as a top up loan a kind of residual amount left of the cash back

This then acts as a top up loan which increases your payments ongoing for the next 9 years. This means paying £45 more a month x 108 = £4860 extra in interest. This isnt right as you had the cashback as a perk of the loan by not claiming on the ppi policy so are you back in a position where you would have been if the policy wasnt sold no.

It gets worse however as all the payments you made to the cash back £9390 F have been added into the loan as well as the cashback payment left by FP ABOVE.

Even if you pay everything you can back you will notice that the loan still only goes down to £696 from £785. It should go down by the ppi you were paying which is now £150 pounds ish a month.So new figure should be in the region of £635.

Sorry I have rambled but I hope I have given you enough to start going back at FP

Me I want the lot back please. Tough. You sold me a cashback scheme. I am not funding your error. I want the cash back as promised of which I get to keep. I then want the return of my premiums plus 8 % plus any residual interest. Only this will mean by the end of my 25 years then I will not have paid a bean in interest on the ppi. By the way the I will have paid off the cashback balance within this requset.

I will post up my alternative offer figs soon on how FP should be offering redress.

N

Niggly_2

janerobinson55 wrote: »

Hi everyone, we are still waiting for our offer letter from first plus.

On looking at the offer letters other have had on this thread I was surprised by the amounts as I had calculated I would get a higher offer despite having similar PPI loan. We are due the cashback from this PPI in december.

Was i just being really naive when i read the initial letter regarding the offer that we woud actually get ALL the PPI premiums plus the interest on these premiums plus the 8% interest back as a cheque.

As i have noticed on this thread that people's interest has been taken off their actual loan (this made me feel quite cross :mad: )

Are we forced to take this interst off the loan rather than have it back as a cheque and why is this ???

Thanks for your help and sorry to sound a complete idiot

Jane

Please ask FP this. If you havent had the cashback then you will get back the interest charged on the ppi taken off the loan reducing payments by the ppi amount. You will then get the premiums you paid towards the ppi each month plus 8 %,

In your case they will add back in the premiums you pay to the net loan otherwise the interest on the ppi plus the contributions you have made (nearly equal to the interest) would mean taking off 2 refund of interest and the premiums would reduce by double the ppi you will have being paying.

Wouldnt that make up for the doubling of interest rates they have got away with by not reducing our rates as BofE rates tumbled.

pLEASE PLEASE MAKE SURE THE NEW PAYMENT IS EXACTLY LESS THE PPI YOU PAY NOW. IF NOT ITS WRONG.

So far I have only seen 2 correct ones. 8 others have gone back and its been agreed the offer letter was incorrect. Usually interest rate wrong on calculating the interest to come off the loan or the rate you you pay against the reduced loan balance.

N

N

MUM40

Niggy,

phoned FP today and said that my figures look incorrect, lady got senior manager to check and guess what they are incorrect. now awaiting for a new offer and will let you know.

thanks for your help, we would of normally just signed the acceptance letter.