Freedom Finance re First Plus Loan

FFan

Hi,

Is it worth me reclaiming mis-sold PPI on a consolidation loan I took out with First Plus in 2004 & repaid in November 2006? I believe it was brokered by Freedom Finance who no longer exist - so I am unsure who to write to if I pursue the claim.

My reasons for the mis-sale are:

1) I did not realise the PPI was in fact like another loan ie amount added up front to the loan applied for & therefore had interest appied to it

2) At no point was I asked about my suitability ie I worked for a company that provided a generous redundancy & sickness cover. In fact I can prove this as I was made redundant in 2009 & received a good redundancy payoff.

3) I did not fully recognise at the time that cover was only for 5 years when the loan was for a greater length of time, even though First Plus sent me the PPI policy later with the loan paperwork.

4) I had a previous history of taking out consolidation loans - in fact the First Plus loan itself was repaid by remortgaging 2 years later - so I don't think a single premium PPi policy was a suitable product.

5) I didn't realise that I could get PPi elsewhere cheaper.

6) Also I was never asked about any pre-existing medical conditions. I'm not sure if its worth mentioning this as I didn't have any (?)

Any advice would be appreciated, especially as I don't know who to write to if I claim this.

Thanks for reading this.

magpiecottage

1. That would be likely to result in an upheld complaint
2. Irrelevant - redundancy payments are never guaranteed (a guaranteed one would be taxable) and PPI would have paid out on top of a redundancy payment (though you would be deemed still "employed" during a period where you had pay in lieu of notice.
3. This would bundle in with 1.
4. That is not a reason for complaint - though consolidating loans is a mug's game.
5. Irrelevant - they are not required to tell you.
6. Irrelevant as it would have no bearing on suitability.

However, if the firm does not exist any more it cannot respond to a complaint and, since the policy was sold before 14 January 2005, the advice is not covered by the Financial Services Compensation Scheme.

FFan

Hi,

Thanks for the advice. However, First Plus are still in existence and is the company that took my money. Is it possible to pursue the claim through them?

Thanks

miserableindebt

I have just had a letter today from first plus saying they wont take my claim on because we had bought the ppi from freedom finance.

Its been referred to the fscs, but my loan was paid back in 2002 so does this mean I havent got a claim either?

marshallka

miserableindebt wrote: »

I have just had a letter today from first plus saying they wont take my claim on because we had bought the ppi from freedom finance.

Its been referred to the fscs, but my loan was paid back in 2002 so does this mean I havent got a claim either?

Try the insurer maybe? You can get the details of the insurer via Firstplus.

I note that there are so many people that are "being told" they used a broker with their Firstplus loan and yet have no recollection of doing so. In fact there are many who have all the paperwork from their SAR's and still have no actual proof of ever going through a broker. I wonder why FOS just accepts it when Firstplus tell them that a broker was used to purchase the PPI? Just about everyone that posts of these two firms cannot be wrong.

I know with my own Loan that it was only AFTER applying for the loan WITHOUT the ppi that we were sold the PPI conditional and it was only Firstplus that we had dealings with and them that we rang when the agreement came out.

When our SAR arrived there was some papers from Firstplus computers headed as saying Freedom Finance (and yet at the time of our loan they were not actually called Freedom Finance either and were actually Wilmslow Finanancial and changed their name a while after) and that was all... nothing at all official and this could have been done by computer.

I wonder just what they are playing at. I really wish someone would get to the bottom of this and actually PROVE that no broker was involved or at least get Firstplus to actually PROVE that there was..... I know we rang FIrstplus after seeing their advert (the famous carol vordamen one) but they state a broker was used. I contacted FOS with my complaint also saying no broker was involved as we know and we hold FP responsible for sale but it was dismissed by them for two reasons. Our loan was taken out prior to Firstplus being members of GISC and also FOS listened (without actually investigating which is annoying) to FP saying they did not sell this and it was actually sold via a broker. (not being biased of course).....None of my paperwork is headed by any broker (all Firstplus) and the broker that we were told we used had no records of our loan so they sent back our SAR request saying they held no records. How can FOS not investigate these claims.... how can the FSA not get involved in these lender/broker relationships. Its beyond me.

Good luck and hope you can get your claim in with the insurer.

miserableindebt

so what date did you go through all this? did you not get anywhere with the insurer/underwriter?

seems so unfair, after all first plus have our money.

wouldn't mind, I have spoken every day this week with someone from First Plus ppi dept, and they had said it was a straight forward case and couldn't see any reason why it wouldn't be upheld. Then this!! One thing, the loan reference on my knockback letter is different to my loan reference, is this normal?

marshallka

miserableindebt wrote: »

so what date did you go through all this? did you not get anywhere with the insurer/underwriter?

seems so unfair, after all first plus have our money.

wouldn't mind, I have spoken every day this week with someone from First Plus ppi dept, and they had said it was a straight forward case and couldn't see any reason why it wouldn't be upheld. Then this!! One thing, the loan reference on my knockback letter is different to my loan reference, is this normal?

Hi, my complaint against the insurer was for an unfair rebate when we settled the loan early and it was full and final. FOS were only just taking complaints against insurers at that time and it was hit and miss (still is apparently) as to making them responsible for the sale.

My argument is and always has been that FOS accept Firstplus and their word that it was sold by brokers and yet there are lots who have requested SAR's and there is no solid evidence (other than firstplus printing off their paperwork headed with a brokers name!!) to say that a broker was used. I think that commissions were paid over to brokers and perhaps you could request the commission payments that were made for some evidence. I know that my commission statement for the broker was a firstplus piece of paper which said that some commission was paid over (5% of the actual Loan) but nothing for the loan of the PPI amount. I think to me that says it all that Firstplus SOLD the ppi and they should have been made responsible for it but as i said earlier my loan was taken in 2000 and it was just before they became members of the GISC.

If you are sure that yours had no broker involvement for the PPI it would seem to me that FOS have to accept the sale against FIrstplus maybe and it should be straight forward. Perhaps you could have a word with FOS. Firstplus were GISC members in Nov 2001 i think but FOS would confirm that also. If your loan was after that date then they should be able to intervene for you IF they accept the complaint as no broker was involved during the sale of the PPI. Just my view from posts on here and other sites in that how can so many people be so wrong. It was Firstplus that added our PPI and it was FIrstplus that told us it was compulsory to the loan (it was just like a savings plan and we get it all back after 5 years LOL).....to me Firstplus are just passing the buck.

marshallka

Also where Firstplus are concerned then most of the complaints against them are being upheld so surely if a complaint does fall outside of jurisdiction purely because of dates then out of fairness (which is what the FSA is expecting of firms) they should treat the complaint as if it were within their jurisdiction as they have been systemically misselling their PPI.

I suppose they know this though and that is why they state "you used a broker" so we cannot help. Only they never actually prove a brokers involvement. I wish someone would get it proved of no broker involvement and then perhaps something could be done.

I put our complaint against Firstplus into FOS (it was Firstplus that sold the PPI as I recall) and it was dismissed as outside of jurisdiction and also FP told FOS that a broker was used. I don't know what difference it would have made if this was a 2001 sale (after November) when FP became members of the GISC and they argued there was a broker and we said not?

I wonder so many times if FOS would have accepted that we DID NOT use a broker (and remember FOS would only have had the same paperwork that we had as we requested a full SAR and we had NO solid evidence of any broker involvement and only FIrstplus's word and some documents printed off their system saying a brokers name at the top ....... also the brokers name would have not been what they were saying at the date of our loan as they had not changed their name at that time........ says it all to me.......) so they should have treated the complaint as our word against theirs and accepted it against firstplus and let them prove otherwise. Would they have though? Also the commission statement that Firstplus sent to use (a document stating that some 5% of the loan was paid to someone) only showed commission on the actual LOAN ....... there was no commission paid over to anyone for the PPI. Firstplus are being allowed to get away with so much and much the same in all these secured loan lenders.

I wonder if they have ever paid out a PPI complaint to anyone that put one in and their complaint was upheld because it would have been most likely missold (systemically)? Treated them fairly as the FSA was expecting of all firms. I really doubt it. Maybe the FSA should tackle the secured loans sector now as these complaints are actually the biggest payouts and rip offs and it will be too late for some soon.... they seem to be folding daily. Perhaps they can get the secured loans firms to send out letters to everyone that may have been missold their single premium PPI? I think that most of these complaints would have been upheld.....

miserableindebt

Thanks Marshallka. I just feel like giving up, because I dont really understand all this, and don't know what to. I of course will phone First Plus tomorrow, the FSCS and the FOS, but not really sure what I am pursuing now.

I have been wondering if the famous Carol Vorderman advert which I remember ringing up, and so do you and others, whether that was in fact a Freedom Finance advert?

My kids are broken hearted, I had stupidly promised them a trip to Florida if we won, after speaking with First Plus PPI dept who said mine looked like it was a straight forward simple case.

Think I might email Dom Littlewood on the One Show lol!!! Wonder if the government know they are getting away it other ways. It is maddening especially as they were mis-selling anyway, and it is them who ultimately got the money.

What paperwork should I be asking for ? What is SAR?

Do they allocate a different reference number? mine has a different loan reference number on it.

amersall

Sorry to butt in!! can i be cheeky and ask Marshalka if she could look at some figures for a poster for mis sell with First Plus?, he has had the cash back and is taking the option that resets the loan,he just wants to know if the loan balance is near enough right, i know you are a whizz with calcs, if you could look at this i will be your slave forever xxx.

marshallka

Hi again.

We were "told" by Firstplus that we used a broker and went through a teletext advert to phone them. (My recollecion was a Firstplus advert). After we requested the Subject Access Request (SAR - which is everything they hold on you) the very first piece of paper that they sent us was with mention of Lowcostloans.co.uk which was a request by them apparently to do a search on the property or something or other. (After the loan was taken out).... I googled this company and from the company registration number on who is it came back to Freedom Finance BUT at the time of our loan this firm would have been called Wilmslow Financial Services Limited. I also found a cached clip of lowcostloans.co.uk and it was from 2001 and it said they were members of the GISC on it...... it mentioned FISA and also GISC..... now when you ask FOS about Freedom Finance and whether they were GISC members they state they were not until 2004 I think it is. In those days I assumed that FOS had past and present name changes (as these companies change them like the wind) so dont think i asked about Wilmslow Financial Services being GISC members or in fact Lowcostloans.co.uk....(company number 01780977).

Everything was dodgy within the loan from Firstplus though. The whole process was seemingly like they were hiding something and setting us all up. I got told my PPI claim against Freedom was actually whereby Freedom were only actually acting as introducers for another firm in Gibraltar.

If I was you and you have nothing to lose then I would get your SAR from Firstplus. There is a letter of how to do this posted here..
https://forums.moneysavingexpert.com/discussion/1475553

Also forgot to ask. WHen was your loan taken out? What date?