First Plus in default of FSA ppi agreement

marshallka

How they work out the amount back to you is whatever you have paid to date in PPI and interest on the PPI and then add 8% statutory interest to todays date for each repayment made.

Your PPI in total would be the amount of PPI plus interest for the full term of the loan (and not just the 5 years it covered) as this is a single premium meaning it was another loan to pay over a premium to the insurer in full hence incurring interest just like your original loan.

Someone could check your figures if you give the figures off your agreement and length of loan etc and APR and repayments made etc......

amersall

gravyboat1 wrote: »

Hi everyone im just after some help with numbers first plus have given me.Firstly can i just say a big thank you to all on MSE though ive successfully had my PPI claim upheld by first plus which i was going to complain about through one of those tv companies you see all the time but after reading many threads on here decided to do it myself using amersall's generic letter of complaint and today (after only 2 weeks of sending of letter)i received a letter confirming that my complaint was upheld and giving me the figures which im not sure about.Could somone please explain .

Firstly the original ppi amount added to my loan was £4898 and i am just 2 months short of my 5 year anniversary in which i would of recieved my premium back,and i was paying £39.38 towards the ppi loan but 60 monthly payments of £39.38 doesnt add up to £4898 over 5 years which the cover lasts for.Any way full figures are below could somone explain them to me please,thankyou.

A - refund of payments made for PPI £2287.64
B - 8% per annum simple interest £355.32
C - total refund A + B £2642.96

D - original ppi policy £4898
E - interest incurred due to ppi £1723.75
f - less any claims £0
g - total value of loan reduction for ppi premium £6621.75
and interest (=d+e-f)

H - outstanding balance(protected loan) £22031.57
i - revised loan blance without ppi but i get refund £17697.46
(=H-G)+A
i - revised loan balance without ppi but apply refund £15409.82
to loan (=H-G)

I dont get how the original ppi was £4898 yet after 5 years (the term of the cover)ive only paid £2642 even with the other interest it only adds up to £4366 i just dont get it please help.

The £4898 has been taken off the loan balance,as marshalka says,you get ppi you paid to date 58 months worth back to you.

The whole ppi coming off the loan will save you thousands over the remaining term,make sure your loan payment reduces by the ppi monthly amount.

When you get the cashback this does not include interest you paid for 5 years,and the whole ppi would still be on the loan to term end with interest.

gravyboat1

Thank you both i will send my acceptance back today

bear1973

Hi was wondering if anyone can help me please, I received my ppi 5 year payment back fron FP about four years ago I have never had a statement from them to say how things are going.

1 can i claim against them,
2. what information do i need to have/get from them.
3. are they breaking any rules by not giving me a regular statement
4. Am i still paying PPI

We have a total loan of 25200 over 240 months the first payments were 234.67 per month and have since rose to 275.00 approx per month. I belive they went up around the time of the ppi the agreement was signed in 2002 but we did not recieve anything until 2003 i have never had anything from them since they wrote to me saying they would not be issueing any new loans.

Thank you in advance for any help on this

amersall

Another one :D love it :rotfl::rotfl:

As you had the cash back, when you win redress they will give you 3 options to take, YOU MUST TAKE THE OPTION THAT RESETS THE LOAN, this will take the whole PPI amount off the balance of the loan and your monthly payment will go down, this is ESSENTIAL that you take this option, any other option will leave your PPI on the loan to term end with interest and this will cost you thousands more than any payment you accept.
Send this letter off to them.

We/I believe we were mis sold the ppi on the above account number,and would like recordings,if any to the contrary of my/our reasons for mis sell set out below.

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 told that the ppi was a 5 year policy, but not told 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,or go into arrears on the ppi ,after 5 years we would receive the cashback of ppi but were not told this would not include the interest made on these payments 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 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.

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 Barclays 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 above loan

bear1973

Amersall

Thank you for your help letter will be going off as soon as the post office reopens.


Thank you once more and i will keep up updated you are one bright star against First Plus

amersall

You are very welcome xx.
Certainly keep me posted! I love a win with FP xx.

bear1973

Well the letter has arrived at first plus as i sent it recorded delivery well it's just a waiting game now. Amersall do you happen to have a template letter or know of one that i could use for other companies as i belive i may have soome more but not 100% sure think i may have a chance with NRAM.

thanks once again

amersall

Fingers crossed for the FP one xx.

NRAM do them online and most others you can do over the phone, who are the banks and is the NRAM loan still running?.

Here is the template letter if you need one if you need to use one

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3
If you use this then take copies in case you need to go to FOS, this saves you filling it out again.

bear1973

the NRAM one is still going along side my mortage not sure if there is any ppi on it but it is wotrth a try thank you once again