First Plus Loan interest rates

clover104

Hello, first time post & I have a question, I keep getting calls from PPI firms about my first plus loan. I have already claimed back my PPI
& PPI interest, but I am now getting calls stating that the company has lost it's licence and offering to get my criminally high interest rate reduced and stating they could get more more back on the PPI settlement I obtained.

I have tried searching the web and so far cannot find any details regarding a recently lost licence. I am interested if there is any truth to these phone calls and any action I can take re the interest rated.
Also I have never received any annual statements on this loan, I did query this we First Plus and was advised that they were not legally required to supply an annual statement as this is a secured loan.]

Can any body help?

Thanks.:)

sharp82

Sounds like a scam to me.

Are they asking for an upfront fee?

Tixy

Is this the same firstplus who are part of barclays?

There is no such thing as a criminally high interest rate. If the interest rate you are being charged is in accordance with the agreement you signed, or any subsequent notifications if your rate was variable, then a lender is allowed to charge whatever rate they offered and you accepted.

_Andy_

"get my criminally high interest rate reduced" - nonsense.
And as per above, there is no 'criminally high' rate.

khonsu

If Martin threw his publicity behind this one and once and for all clarified the situation with FirstPlus on the tracking of interest rates on loans to the Bank of England Base Rate and/or Finance House Base rate.

If you visit the firstpluscomplaints website you will see that a number of dedicated, intelligent people have attempted to push this subject matter after years of pushing the PPI instance.

A small claims action was pushed out of court by a judge who simply did not understand the matter in hand and the prosecution could only afford a junior barrister unfortunately. All the evidence appears to stack up that Barclay's FirstPlus only apply changes to the Base Rates when it benefits them - ie increases.

Over to Martin? Or whomever owns this site now. :money:

Tixy

I am not convinced that the judge didn't understand the matter in hand.
A judge has to make judgements based on current legislation.

Were firstplus loans were variable rates rather than tracker rates.

khonsu

I appreciate your comment on the judge, check out the post on firstpluscomplaints website that outlines the chaps feedback who brought the case to the courts on behalf of customers. It's an interesting read.

Find_The_Real

First Plus loans were variable rates as per clause 7. It stated it would not vary more than twice the variation in a 12 month period against the FHBR, so there was nothing to stop them from increasing the rate again after the 12 month period. Looking at the overall terms it pretty much covers they can increase the interest if they so wish and this is probably what the judgement was based on.

I am not defending FP in anyway having had dealings with them myself but when you sign the form, you agree to the terms.

halifax71

They've done something wrong as per the OFT reprimand
http://www.oft.gov.uk/shared_oft/consumer-credit/first-plus.pdf

Unfortunately the OFT won't disclose what as it would harm Firstplus' commercial interests.

That issue is being discussed (and has been for 2 1/2 years) at a higher level.