Old First Plus Loan - rejection by passing blame to insurer

Arcturus999

Good evening everyone.

I am writing about a PPI claim I submitted to FirstPlus financial group a week or so ago. I took out a secured loan with FirstPlus in 1998, and at the time, I was distinctly told that the loan would not be approved unless I agreed to the PPI insurance premium that accompanied the loan. This premium was 20% of the original loan and was added to the original loan capital. I paid a very high rate of interest on both the loan and the PPI. The loan was disbursed some two years later, when I moved house, and incurred a large financial penalty for early repayment; after two years' payments totalling over £10k, the settlement figure was more than £7k greater than the original loan amount. I have calculated that just by adding the PPI onto the loan and paying interest on that in addition to the loan itself, I paid some £1500 more in interest over that two year period, than I would have done if the PPI had not been added to the loan.

I have received post back from FirstPlus, which included two letters with the same date on them. One of the letters suggested that they would progress the claim, if I filled in an accompanying form confirming my address. The second letter (and as I said, with the exact same date on it) passed responsibility to their claimed insurer at the time, Midland and General Direct, stating that I should address my complaints to them.

When this loan was sold to me, by an advisor, at my home, it was FirstPlus that sold the PPI, not Midland and General Direct.

What should I do, as I believe that I was definitely mis-sold the PPI?

di3004

Hi there

Just a thought, but are they getting confused and assume you want to make a claim, for eg: sickness/unemployment to that of a PPI reclaim by any chance?

Usually, if you want to make a claim (not reclaim), you do this through the insurer, but otherwise to firstly pursue the broker on the sale of the policy.

As said, only a thought, just in case, as wording can have a lot to do with it.;)

[Deleted User]

Arcturus999 wrote: »

I have received post back from FirstPlus, which included two letters with the same date on them. One of the letters suggested that they would progress the claim, if I filled in an accompanying form confirming my address. The second letter (and as I said, with the exact same date on it) passed responsibility to their claimed insurer at the time, Midland and General Direct, stating that I should address my complaints to them.

Usually the insurer only has to respond to a mis-selling complaint if the lender was not regulated at the time of the sale.Was this prior to 2005?

di3004

Yes that is correct, the insurer/underwriter is usually the avenue the FOS suggest if all fails with the broker, for example, not being regulated FSA/GISC.
It can take some time though.

But the broker is the one liable, and with what moneyepitude says, do write back, make it clear that it is a mis selling of the ppi, as they were the ones who set up the account.

magpiecottage

Moneyineptitude wrote: »

Usually the insurer only has to respond to a mis-selling complaint if the lender was not regulated at the time of the sale.Was this prior to 2005?

1998 the OP says.

That is pre-regulation so there was no requirement to establish suitability.

roonaldo

a complaint would get nowhere. you wont get any money.

Arcturus999

Thank you all for your replies. The loan was prior to 2005, but having read some of the replies to others' questions on here, does the fact that FirstPlus added the large insurance premium to the loan capital and then charged interest on it, have any bearing on a PPI claim?

[Deleted User]

Arcturus999 wrote: »

does the fact that FirstPlus added the large insurance premium to the loan capital and then charged interest on it, have any bearing on a PPI claim?

It's pre-regulation so you have no recourse to the Financial Ombudsman Service. First Plus will treat any complaint accordingly, I'm afraid.