Firstplus PPI claim after receiving cashback

-taff

Doesn't matter when you make your complaint just make it.

amersall

Do the mis sell first, the whole PPI will be taken off the balance, this brings it to £28.000, the PPI paid to date will be given back with the interest associated with that and the 8%.
Get the claim in, use the letter I posted up on here to send to them and let us know how you get on.

gian63

Hello, I hope someone can advise me as I have read the thread and I am a bit confused.
We took out a Firstplus loan for £20000 in 2008 and was told on the phone that the PPI with it was basically like a savings plan as we would get our money back if we did not claim and did not go into arrears in 5 years. I thought that was a brilliant idea as I had other PPI's and insurances that did not offer this.
Both my partner and I have critical illness/death policies and I have a 'select and protect' insurance for us both as well, which is for short term illnesses and pays even if our jobs pay sick.
. Because this was a secured loan, I was convinced that we would lose the house if we couldn't pay, I was not asked if we had other protection and like I said, were sold it as a 'savings plan', so it seemed like a good idea.
During the conversation I was told that if I extended the load over 7 years, the monthly payments would be cheaper, which I agreed to do.
Anyway, 5 years passed and we have been paid £4898 back (payments over 5 years for the PPI was £4812 so we were paid slightly more than we paid in.
But now, I see from my bank statement that the monthly payments have not decreased by the PPI amount, which I was expecting.
Looking through this thread I see I was conned and that the PPI payments continue after we are no longer covered.
Also, I am the first named person in this insurance and I've read through the bumpf since discovering the continued deductions of PPI, and it says that the second named person is only covered for life insurance and not anything else. My husband does not get sick pay and so it was more inportant for him to have the illness cover and not me.
I get fully paid for 6 months from my employers and on top of that we both have critical illness and life insurance and another PPI. So this PPI was actually worthless for him anyway.
All this was not advised at the time and no questions were asked of me.

Now that we have had the cashback, can we make a claim on the mis-selling? I think we were mis-sold on several things,
1) I was sold this as a 'savings plan' as an encouragement to take it
2) I was not told that the payments would continue for the life of the loan even though the cover would not. I was actively encouraged to extend the loan to 7 years from 5.
3) I was not told that the second named person would get only life cover - nor asked which one of us would need the most cover (evidentally or I would have said my husband and not me as the first named.)
4) We have other insurances and life cover.
5) The loan is £327 per month and the PPI is £80.20, I've checked and this is a very high amount to cover the loan repayment, I think I could have gotten cheaper insurance if I had been told I could look around.

Can I get Firstplus to stop taking the PPI each month?
I am not sure if we are owed any more money, (probably interest) but just reducing the payments would help.
Or could/should I claim for more than this?
It seems some people have ended up owing more money by trying to sort this out and I don't want to be in a worse position if I make a claim. I'm very worried..
Please can someone advise?

-taff

use 1-4 but not 5. They don't have to tell you that. Read some more of amersalls posts

gian63

Thanks Taf, I will check out amersalls posts

amersall

Put the claim in the main thing is to get the loan reduced.
Send this
We/I believe the PPI on the above loan account number was mis sold for the reasons stated below and We/I would like proof to the contrary of my/our reasons below for mis sell of the above PPI .


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 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 and We/I would no longer have cover.

3) We/I were told that if we did not make a claim,or go into arrears on the PPI after 5 years we/I would receive the cash back of PPI but were not told this would not include the interest made on these payments that we paid over the 5 years or that the PPI would still be on the loan to term end with interest.

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 they are paid 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.

You will get redress and the whole PPI will be taken off the loan balance and the monthly payment rduced by the PPI monthly amount.

amersall

-taff wrote: »

use 1-4 but not 5. They don't have to tell you that. Read some more of amersalls posts

You are making me big headed now

l44wsa

Hi everyone, I've been reading through this thread and believe I may have a case but just wanted to pass on the details and enquire as to what my options or circumstances are before I send any letters in!

FP loan: 08/07/05
Cash Loan amount: £22,000
PPI Loan amount: £4384.60. Total £26,384.60
Cash repayment: £263.08
PPI repayment: £52.43. Total £315.51
Loan period: 10 years
Charge for cash loan: £9,569.60
Charge for PPI: £1,907.pp. both at 7.67%

The interest has increased since taking the loan out which in turn has increased my payments to £327.38, which I've been paying for quite some time now.

This was a joint loan between myself and my wife and unfortunately I had to go bankrupt in January 2009. In July/Aug 2010 we received a cheque back for half the ppi money (we presumed my half went to the OR) as part of my estate. I was automatically discharged by the OR in Jan 2010 and have sincebeen advised that all dealings with him are complete.

I am not 100% sure on some of the information that has been posted previously as to what would happen if I was to make a claim? Would I owe FP money back etc....

At July 2013 my balance to pay was still at £7,624.59!

Any advice would be very much appreciated.

amersall

I think the OR would need to be informed of this before you proceed then you will know if they want any redress.

If you won mis sell, the whole PPI amount would be taken off the balance and monthly loan payment would go down by the monthly PPI amount, the good thing with this is the debt clears faster, any money over, if any, would go to the OR, check this out.

The PPI you received on cash back, check the exact amount cash back that you did receive, would be taken back by FP, they then calculate the 8% and the PPI that you actually paid to this loan, make the claim even if the OR takes it, they cannot take the reduction in the loan balance for the total PPI.

l44wsa

Hi all

I sent my claim letter off and have Just got back from holiday and I have a reply from FP dated 8th august saying my loan was through loans.co.uk and they have forwarded my complaint to them and included their address and phone number. I haven't had any contact with loans.co.uk since this date.

Not 100% sure what this means and wondered if anyone can advise me on my next move? All my paperwork is headed by FP including the loan agreement so surely it's is up to them to address this? Or do I chase up loans.co.uk?

Thanks
L44wsa