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First Plus - no compromise whatsoever!

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Comments

  • Teen_the_Drama_Queen
    Teen_the_Drama_Queen Posts: 155 Forumite
    Part of the Furniture Combo Breaker
    edited 19 January 2012 at 2:05PM
    Posted by Sniggings...... I understand what you're saying and agree the more money they get back the better for them but just because you borrowed £100k is not the same as saying you owe them £100k,they are without that £100k for 16 years with all the loss of interest they could be getting from it,so instead of thinking you owe them £100k,add in all the lost interest too which would bring the figure to 200k 300k,so instead of asking them to accept a 4k drop you are really asking them to drop maybe 200k,with such a loss and wanting them to agree to this for 16 years maybe you can now see why they were not so accepting of the deal.

    I hear what sniggings is saying, but you would think that Firstplus would, like the rest of us who have gone BR thanks to them, would cut their losses and run. Surely getting something is better than getting nothing.

    As I have mentioned on here before, we recently had a letter from Firstplus saying that we would be due a refund of Insurance Protection Payments, of course being BR that's gonna be a non-starter, but hey, nice of them to think of us :D

    Also, regarding the extra sub-thread regarding stashing some away, surely you have to do that? Things like car repairs and service have been factored into your SOA for BR and have been agreed by the OR, so at any one time you have to have a couple of hundred put aside for the 'emergencies' of car repairs, service etc. You could not afford this payment in your weekly outgoings if you had not put some aside already and of course, you do not have a credit card to fall back on! (Those were the days which I never want back again ;) ).
  • sundays
    sundays Posts: 408 Forumite
    Well stop paying them, and use that money for what might be needed when you move out, personally there never gonna repossess if they are gonna get zero, id stop paying, go BR and remain, i reckon you would be there for a very long time.
    if only life was a box of chocs
  • sniggings
    sniggings Posts: 5,281 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Posted by Sniggings...... I understand what you're saying and agree the more money they get back the better for them but just because you borrowed £100k is not the same as saying you owe them £100k,they are without that £100k for 16 years with all the loss of interest they could be getting from it,so instead of thinking you owe them £100k,add in all the lost interest too which would bring the figure to 200k 300k,so instead of asking them to accept a 4k drop you are really asking them to drop maybe 200k,with such a loss and wanting them to agree to this for 16 years maybe you can now see why they were not so accepting of the deal.

    I hear what sniggings is saying, but you would think that Firstplus would, like the rest of us who have gone BR thanks to them, would cut their losses and run. Surely getting something is better than getting nothing.

    As I have mentioned on here before, we recently had a letter from Firstplus saying that we would be due a refund of Insurance Protection Payments, of course being BR that's gonna be a non-starter, but hey, nice of them to think of us :D

    Also, regarding the extra sub-thread regarding stashing some away, surely you have to do that? Things like car repairs and service have been factored into your SOA for BR and have been agreed by the OR, so at any one time you have to have a couple of hundred put aside for the 'emergencies' of car repairs, service etc. You could not afford this payment in your weekly outgoings if you had not put some aside already and of course, you do not have a credit card to fall back on! (Those were the days which I never want back again ;) ).


    I have never dealt with Firstplus but it seems they are not well liked,I was not sticking up for them but only trying to help the OP see the figures a bit more clearly,which in turn would maybe have helped her understand the real figures were much bigger than she was saying, so maybe see why they were not so ready to agree to a deal.

    Firstplus as any company have a business plan,there isn't one way to deal with a bad debt,it seems Firstplus has decided rightly or wrongly that they will receive more from these bad debts if they take a hard line and do not do deals,maybe for every 100 people that offer a deal before BR enough of them that are turned down by FP end up not going BR and carry on paying FP? Maybe they think if word gets out they do deals more people will ask,who know if they are right or wrong but it seems that is the way they choose to run their business,but what I do know is using a simple argument by saying "you would think they would want such an amount rather than nothing" is not looking at the big picture,yes for that one person it may seem daft but from FP's standpoint they may think in the long run they will end up receiving more,they are playing a numbers game,so for every 10 deals they turn down maybe in their experience enough of those might end up paying more than what was offered in the deal, Just to think they are turning down deals to be nasty or because they are daft is too simplistic.
  • Yes sniggings, I'm simple :mad:

    I was simple enough to take out a Firstplus loan in the first place and I am no financial expert, obviously had I been I would never have darkened their doorstep in the first place. I bow to your superiority, you are obviously an expert, albeit you have never dealt with Firstplus.

    I think its time I bowed out of MSE altogether. I'm BR and survived. End of. If I need any further help I shall go again to National Debtline.
  • BTW (before I go!) perhaps you would like to look at the following site:

    https://www.firstpluscomplaints.co.uk

    There seem to be a lot of 'simple' people about.
  • sundays
    sundays Posts: 408 Forumite
    Sniggins i dont think you fully understand the scenario.

    1. The property in question is in negative equity , so if the poster does a runner and goes BR, First plus will get zilch, First Plus are unlikley to force a repossession , a) the first charge will prob object and b) even if they did they would still get zilch.

    2. the OP has offered them something , they have refused, it is prob only a call centre operative that has made that decision.

    3. At the point of final litigation, is when proper offers are considered . Months and months away.

    4 If FP went for repossession, it would prob only get suspended anyway because the homeowner would agree to the terms implied by the court , which would be the current amount and then the arrears built into term per norgan case law, so id say stop paying FP, save that money and then decide in time if BR is the option that is needed, a few months of saving on the loan will see them pretty will set up in private rental if they need to. ie a lump sum paid in advance for the tenure offered.

    I dont think the poster needs a lesson in alledged business, you are right they are only a number. They have asked the question to FP and on here because people like me have told them to continue to pay the first charge and chances are if you they pay FP a bean nothing will happen until the day the property is in reasonable equity.
    They will however be driven mad by phone calls, i would a) change my number in prep for that.
    FP as are other 2nd secures lenders are not stupid there is abosoutely nothing to gain by focing a repossession , they hope the poster is bluffing and will pay up.

    The poster is worried it may happen and then they are stuffed if they have no accommodation sorted, and as a BR its harder to find because your credit file says " Bankrupt", where as i suspect the poster has a decent file to date and of which they should get good rental reasonably easy.

    BR and rentals doesnt go hand in hand sadly- many wont touch a BR.

    In reference to not saving pre BR, only a fool wouldnt, a few quid in the home safe or under the matress , who cares we are looking out for hard times when they do come our way.
    if only life was a box of chocs
  • I have now stopped out 2nd payment to FP, (getting loads of calls / letters) am thinking to writing them with an offer, but don't want to do too soon. Was thinking when we get a letter from a Solicitor, does this sound about right?
  • kepar
    kepar Posts: 1,297 Forumite
    Maxnana wrote: »
    My husband had a long conversation with Red Castle Recoveries today who are dealing with our arrears to First Plus. We have a £100K secured loan with FP with repayments of around a grand a month with still 16 years left to pay. The repayments are now £3000 in arrears, hence the Red Castle involvement.

    Anyway, we are planning on handing the keys back to our mortgage company then going bankrupt, mainly due to the fact that we can no longer maintain this secured loan payment at that rate.

    However, a couple of people have suggested to try a last-ditch attempt at getting FP to reduce the payments to a manageable amount right until the end of the term, and accept that as full and final settlement.

    This is why the husband phoned them (via Red Castle) today, just to sort of sound them out.

    He offered £500 a month for the rest of the term (16 years) as full payment. That means they will get £96K of their £100K back. They refused. My husband told them that due to that refusal our only other option is to hand the keys back to our mortgage company, who would then repo the house, sell it, and get their money back, but that there would be nothing left for FP because of the massive negative equity, and in addition rendering the loan unsecured.

    He said we would then go bankrupt to take into account the mortgage shortfall, and when that was in place FP would find they will get maybe a couple of grand back via an IPA over 3 years.

    Their reply?

    'Do what you have to do' !!!

    Thought Carol Vorderman was supposed to be good at sums???!!! :huh:

    When you took the loan out you agreed to repay £1000 a month, you are now in a position where you cannot pay that and want to repay at £500 a month. What happens in a few years time when things may change and you then offer £200 a month. I cannot see how you can can say you will pay £500 a month for the next 16 years.

    Also what happens if your finances change for the best, are you going to offer to repay more.

    The SL you have is like a mortgage where most of the early repayment years are basically interest and very little capital.

    FP would have borrowed the money at an certain interest rate and if you cannot repay the rate they charge then they would have to make up the shortfall. Even if there was a little extra paid by you to cover the loan, it would probably not be enough to pay for the upkeep of the loan.

    It is probably cheaper for FP to write it off against their profits. This also closes the account and then will not have any running costs.

    FP will factor in that you, me and many others on this site will be unable to repay.

    Like I have said they will just get the debt written off.
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