First Plus - no compromise whatsoever!

tall_tog

i can only sympathise with you
First Plus are completley unsympathetic
ive posted more detail else where but since Jan 2011 i suiffered severe depression as a result of marriage breakdown, my wife then upped and moved to somewhere unknown and stopped paying anything and i tried to struggle on
i lost my car - worth £5k sold at auction for £2000 with £4k outstanding, Santander that was with and they are just as bad.
I answer one call a week from FP and ignore the other 30+ calls, and i try every time to explain the situation but they are just not interested and will make no arrnagement for reduced payments until it goes 3 months in arrears and is passed to a debt collector.
they say door step lenders are bad, IMO the big guys are equally as guilty and need to be sorted out
as an aside,, i have today reported the Halifax to the financial ombudsman for their handling of the joint account - or lack of handling and action.
I know it will achieve nothing but if it annoys them having to take time to invesitage and write back to me then i feel a little satisfcation that the £165 charges a month they are currently taking have been well spent!!!

sniggings

to be fair your maths don't add up,you are probably not taking the interest into account,giving them 50%/£500 less a month over 16 years can not result in only a shortfall of 4k.

Maxnana

sniggings wrote: »

to be fair your maths don't add up,you are probably not taking the interest into account,giving them 50%/£500 less a month over 16 years can not result in only a shortfall of 4k.

No, I'm not taking the interest into account, only the loan amount. But I still would have thought it would be preferable to get £96K back rather than a couple of grand at the most through an IPA.

alastairq

rather than a couple of grand at the most through an IPA.

With a surplus-based IPA, I'm afraid the OR gets the first bite of the cherry...and a very big one it is too!

This is how Insolvencies, and the Official Receivers are funded.

Others may correct me on this, but I think the administrative costs of a bankruptcy are in the region of 5 to 7 thousands.... obviously depending on how much work is needed to sort things out.

So I doubt that what ever is left will fund anybody's Christmas bonus.

All of which the BR should not concern themselves over.

tall_tog

i thought primary lender first, secondary lender eg first plus second and anyone else picked over the bones?

Maxnana

Well, regardless of the whole amount we owe First Plus including interest (which I didn't count in - I was just making an offer where they'd at least get most of what they lent us back), whatever First Plus would be in line to receive through IPA (which might end up even less than I thought, going off the comment above), I just would have thought they'd prefer £94K. Apparently not.

tall_tog

when i asked FP what would happen in this situation they asked if house sale would cover the mortgage and loan.
when i said probably not they told me they would send a 'shortfall agreement' to be completed and returned.
they also said that if the loan was maintained at three months or less in arrears it does not escalate, only if it goes beyond 3 months in total in arrears the debt would then be passed to a debt collector who would seek a payment arrangement.
I'm almost at the three month point but really unsure if i believe what they say and if i want to find out or not!

debt_doctor

Hi,

Well, as you said, it was suggested to you and you tried.

Now it is time to concentrate on your plan; get private rent, make the place reasonable, go BR 'in due course'

DD

SteveABC

tall_tog wrote: »

when i asked FP what would happen in this situation they asked if house sale would cover the mortgage and loan.
when i said probably not they told me they would send a 'shortfall agreement' to be completed and returned.
they also said that if the loan was maintained at three months or less in arrears it does not escalate, only if it goes beyond 3 months in total in arrears the debt would then be passed to a debt collector who would seek a payment arrangement.
I'm almost at the three month point but really unsure if i believe what they say and if i want to find out or not!

Hi - just a word of warning about "shortfall agreement" - Don't sign anything. If this is what they call a "deed of acknowledgement" you could be liable for the shortfall and it may not be included in your BR (if you decide to go BR).

My experience of First Plus was daily phone calls (including Sundays) on my mobile to ask for payments from the day of the first missed repayment. This then changed to hassle from Redcastle after three months (their debt collection agency) - it made me ill. In the end I told them to stop hassling me as it was affecting my mental health and I insisted they transferred me to an adviser who had been trained to deal with vulnerable customers (they could not do this).

They (Redcastle) just kept saying that I was still liable for the secured debt even though I was BR, as the repo had not taken place (took 9 months for N Rock to repo the house). However, I was advised (by CCCS) they could keep asking although, in reality, there was not much they could actually do, as I was BR and 100% of my disposable income was forming an IPA. In the end I just stopped answering my phone.

House has now been repo'd so their debt has finally fallen into my BR - phew! (Interestingly, the main lender (N Rock), whom the bulk of the secured loan was with didn't hassle me at all, apart from standard reminder letters.

JCS1

tall_tog wrote: »

i thought primary lender first, secondary lender eg first plus second and anyone else picked over the bones?

Any money from the sale of the property would be distributed this way as it's secured debt. But as soon as the property is repossessed/sold, any shortfall becomes unsecured debt and they would be treated the same as any other creditor when it comes to monies from an IPA.

Alistair is correct, OR gets their fee paid first. They were a few thousand when I left the IS, but suspect they have gone up since then.