first plus

jenninj

Hi all,

I took out a secured loan with firstplus in 2007, my five years is up in June this year and, apparently, I can claim back the PPI (totalling 16000). I am not sure what happens with this - does the PPI amount get paid off the balance of the loan? If it does, will my payments reduce by the amount it states for PPI (£130). Or does the PPI amount get sent to me and the payments stay as they are.

I dont know what to do with all of this - should I claim the money back in June or try to get it back through misselling. I dont want to be giving them my hard earned money for this insurance as I have since found out that, as I work for the NHS and my husband for local government, we have good sick pay (6 months full pay and 6 months half pay if we are off sick) so probably wouldn't have been eligible to claim anyway.

The company who originally sold us the loan and PPI are no longer trading so I cant approach them to find out what to do.

Any help would be appreciated

amersall

The ppi will still be on the loan after you get the cashback,you will pay thousands in interest for this over the remaining term and the loan payments and balance stay the same.
Who sold you this?.

jenninj

Hi,
Thanks for your reply, it was through a company called "click for freedom" an internet based consolidation company.

I also have over 30000 of credit card debts so could use this money to pay half of them off which would mean I could afford to pay the remainder off over the next two years. I worked it out that the ppi will cost me 38000 in total with the payments staying over the whole term. I rang the company today to ask if the money was paid off the loan and they said that it wasn't, it was in the form of a cheque to us. I'm not sure what to do for the best, I could go down the misselling route but would risk loosing the refund money and end up with nothing. So far I have paid 60 x 120 over the five years so if I had the money back then went for misselling, I would end up owing them money.

I have approached the CAB for help with my credit cards, they suggested that I open another bank account then write to the credit card companies asking for interest freeze. My husband is not keen on this as he wants to move in the next couple of years and we would then have a bad credit rating and not be able to remortgage to move. As I see it my options are:

1. Take the ppi repayment - pay off half of credit cards then pay the remainder off over the next two years and accept that I will be paying a lot of interest for on the 15000 but probably less than the interest on the credit cards and just be left with the mortgage and second secured loan or

2. Go down the misselling route - save 120 per month if successful and go with CAB to pay off credit cards - this will take about 10 years.

Really don't know what to do!

amersall

With the company that sold you the ppi gone,you may have to claim mis sell from the FSCS,give them a ring and ask if they can help you with the mis sell.

If the FSCS can compensate you,ask them what you are likely to get back as redress,as you are due the cash back in June and need to know if you should get the cash back and if you do,can you get compensated for the mis sell.

If the FSCS can deal with this mis sell i think the ppi will still be on the loan to term end.

If you can have the cash back and then get compensated for mis sell to get premiums back that you paid,then get the cash back.

Is it possible this company has changed name?,ask the FOS , they may be able to help you,if they have just changed name,you can go mis sell to them instead of FSCS.


http://www.fscs.org.uk/contact-us/

jenninj

Thank you so much. I will contact the company you sent the link for on monday morning. My gut instinct is to get the cashback then go down the mis selling route afterwards. I have worked out how much I have already paid in premiums for the ppi amount so any extra I get in cashback will be saved just in case I have to give this back to them if the claim is successful.

Luckily, I have got all the emails off the company who sold me the PPI and it clearly states on there that the ppi is repaid after five years "almost like a savings scheme".

I also don't think we would ever have been able to claim with the sickness packages we get off our employers.

Thanks for your help. Will let you know how I get on

amersall

This is front loaded ppi,the worst of it's type.
Use these reasons for mis sell
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


Edit to your circumstances.

Good luck.

lufc1979

Can i still claim even if i have received the so called cash back?

amersall

You certainly can, use the letter i did above and get it sent off ASAP.
If the loan is still running and you get redress, they will give you 3 options, you must take the option that resets the loan, forget any option that gives you the most money back.

lufc1979

Thank you for your help, letter is in the post I will let you know how I get on