PPI with First Plus

Michelle_D_2

I was sold PPi with my first plus loan and told that if no claims were made we could reclaim it after 5 years. I have just submitted the claim and been told that because we took 2 payment holidays that our account was in arrears. When we took the payment holidays our monthly payments were increased but the loan term was not. We were also not told that taking these payment holidays would affect our ability to claim.
WE were initially refused repayment due to late payments which were in fact caused by direct debit problems on their side not by us. When this was proved to be the case they then reverted to the issue of payment holidays as the reason for rejecting our claim.
We've gone through the complaints department but with no joy. I've reviewed the original paperwork that we received when we took out the loan and can find no mention of payment holidays effecting PPI claims. I feel I'm hitting my head against a brick wall with this! If anyone has any advice, please help!

nanny

We made the big mistake of taking out a secured loan with first plus. . we claimed or ppi back in Oct 2011 we have also had our canal from the 5 year thing. . now what I want to make aware to many is. . yesterday we had a letter from first plus telling us they have looked into our loan and apologise for making a mistake. .. they in fact haven't took away all of the ppi .. consequently they have paid off or total owing nearly 22k... Yes 22k and reduced monthly payments by £200 pet month and about to send us meal 4k in the firm of a cheque. ....we would have never realised this and it worries me that they can make such a big mistake. . AND we are not the only ones !!!

nanny

oops sorry money back ..not canal

amersall

Do not claim the cash back, if you could get this the whole PPI is still on the loan to term end with interest, this costs you thousands in interest over the remaining term, you no longer have cover either.

Send this to FP and claim mis sell
We/I were mis sold the PPI on the above loan account number and
We/I would like proof to the contrary of my/our reasons 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 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.

When you win, the whole PPI will be taken off the loan balance and your monthly payment goes down by the PPI monthly PPI amount.

Michelle_D_2

Thanks so much I wasn't sure where we stood having taken the payment holiday. Do you think we have a chance of getting our money back

amersall

You have a very good chance, this PPI was a rip off, the cost of this over the loan term and the interest would cost thousands and you have no cover after the 5 years but continue to repay this with interest, the cash back keeps the whole PPI on the loan too,send the complaint in and let me know how you get on.

Michelle_D_2

Ok will do, thanks

amersall

Good luck.

Michelle_D_2

Received a cheque for our cash back on Saturday, seems they were in the wrong after all. Still posted the letter regarding the mis sold ppi so lets see what happens. Thanks for your help.