LETTER TO FIRSTPLUS re. PPI

savvykaz

Good evening everyone,

Back in 2004 my DH and I felt we had no choice but to consolidate our debts with one loan and ended up with Firstplus! (before I knew about this site and Firstplus:mad: ). My question is, "Do I write and ask them to refund and cancel the PPI on the loan, or let it run as they say if we don't claim on the policy, we will get £5,000 after having the loan for 5 yrs (10 yr term)?"
If the advice is to cancel the PPI, please can people advise what to write in the letter?
In anticipation, Kaz

tom188

If you were eligible for PPI when you took it out, you cannot recover the premiums paid thus far, however you can cancel it from now on (this may require the loan to be restructure/a new loan put in it's place.

I have no idea about your second point about £5k, what are the terms?

savvykaz

Hi Tom and thanks for the reply,
The terms of the loan were that if we paid our premiums and didn't claim on the policy, then after 5 years we would get back £5,000. If as you say we wouldn't get back any of the money we've already paid, then I feel it would be best to leave the PPI and claim the 5K in another two years time.

bravemanscotland

this is a con watch this space

SWS_2

This PPI is awful, I was looking to swap the secured loan with firstplus but coulndn't because of the PPI!!! They somehow add it to the loan amount, if you cancel it it only reduces you monthly payment by about £1 and no refund of the unused protection even though we would be paying for it for the term of the loan but not having the benefit of it. We borrowed approx £30K with them, yet if we wanted to redeem we would have to pay back the unused PPI so the total we were told we would pay back was about £40+k!!!This is scandalous and I am sure there will be some reason we won't get the £9k back in 5 years that we were also promised. I understand on speaking to them that they have stopped this product (I wonder why!) and hardly anyone at their office can apparently find any information on it. We are now on a DMP with a possible CCJ facing us, I therefore think we are stuck with this loan at a current interest rate of 11.28% interest and useless PPI.

MarkyMarkD

It's very likely NOT worth cancelling the PPI given the prospect of this £5,000 rebate, as long as you are 100% certain that you will keep up your repayments on the loan for the whole 5 years hence qualifying for the rebate.

PPI rebates are very often not anywhere near pro rata as most of the risk of default is in the early part of the loan's life, which period you are now well past.

SWS - why are you not able to claim on your PPI if you are on a DMP? Is the reason for your debt situation not related to anything which is PPI claimable?

SWS_2

Unfortunately not unless they count over-committment, my husband was out of work for a while but by the time we got the massive booklet to complete to make a claim he luckily found work again. I really don't think I can get out of the laon and am stuck with them. We could only get a remortgage on it up to the value of the amount borrrowed and not the added PPI. We got the loan from a broker who didn't explain the PPI very well and at the time we needed the money quickly. Looking back we should have gone on a DMP then, but hindsight is a wonderful thing.

Dylanwing

If you are in trouble, expect NO help from Worst Plus. We were in a bad position 8 years ago, and it was their refusal to do anything to help that finally sank us. And our £30K loan (With PPI refunded after 5 years) was nearly £38K to redeem after about 20 payments. I have not watched Countdown since!

bravemanscotland

time to rise up :T and fight the evil that is first plus

SWS_2

What do you suggest?

petermb_2

There is a way to help resolve your ppi situation. There are legal means to do this. PM me if you require assistance.

regards

Peter