First Plus and Freedom Finance

gregorysgirl606

We took out a First Plus loan brokered by Freedom Finance who are no longer trading.

When we took out the loan we were told by Freedom Finance that in order to have the loan we must take out PPI which we did and subsequently reclaimed after 5 years. We were under the impression that PPI would then cease.

Recently I telephoned FP with a view to clarifying if we were still paying PPI and if so making a reclaim etc. I have now been informed that as the loan was sold by FF First Plus are unable to review the sale of the PPI. They have also stated that due to the time the PPI was purchased we have no rcourse to the FSCS.

I understand we have the right to refer to the FOS.

The outstanding issues are:

We are obviously still paying PPI and need this to stop;

We also paid a lump sum to FP some years back in an attempt to reduce the loan but this had no effect. We were given no information by First Plus at that time.

How do we reclaim the amount we have paid in PPI since we received the cashback in 2007?

The loan has 3 years left to run.

gregorysgirl606

We are struggling to understand all this - think it's a case of information overload and need some help.

We have only just begun to look into this because we didn't realise we were still paying PPI - we thought it stopped after 5 years when we received the cash back. It's only with all the recent publicity that we thought we'd check it out.

Also the payments to FP are high and a monthly nightmare.

Feeling very lost with this - hope someone can help.

Thank you in anticipation.

antrobus

I believe this to be the situation.

Your loan was arranged through Wilmslow Financial Services plc t/a Freedom Finance. They sold you the PPI policy at the same time, and therefore any liability for the mis-selling of said policy would lie with them. Wilmslow Financial Services plc went into administration in 2011, but the FSCS can't help because the sale took place in 2002, and brokers weren't regulated before 2005.

-taff

I don't think there is much you can do.

I don't know if Welcome would have provided the insurance or not, if they did, they have already dismissed your complaint. If it's not them, find out who it is and complain to them. They too can dismiss your complaint but there is a chance they may accept liability.

gregorysgirl606

Taff - who is 'Welcome'?

gregorysgirl606

Please can anyone advise on how we go about stopping the continuing PPI payments? Do I liaise with First Plus and can these payments be stopped now?

-taff

Sorry, meant First Plus...doh!

Your payments can't be stopped because they are part of your borrowing. You're not paying the PPI, you are paying the interest generated by thos epayments because the cashback you had in 2007 was the PPI.

gregorysgirl606

Oh this is not looking good. Is there no recourse at all?

Is it worth contacting the ombudsman? It seems very unfair to be made to continue with payments for an insurance we don't want.

All very bleak it seems ....

antrobus

gregorysgirl606 wrote: »

Please can anyone advise on how we go about stopping the continuing PPI payments? Do I liaise with First Plus and can these payments be stopped now?

First Plus FAQs How Do I Cancel my Payment Protection insurance? say you should contact Customer Care.

gregorysgirl606

Originally Posted by amersall View Post
Please,all of you,when you get the 5 year cashback,this does not include the interest that you paid on this for the 5 years,the WHOLE ppi amount is still on the loan to term end with interest,you will no longer have the insurance,and you will not be covered for the remaining term of the loan,unless you take other cover out.
Regardless of you having had the cashback, You will not get this again,but if the loan is still running,the whole ppi is taken off the loan,the monthly payment goes down by the ppi monthly amount and this will save you thousands in the long term in interest.
You will get the ppi that you have paid to date with 8%.


Send this to FP

We/I believe we were mis sold the ppi on the above account number,and would like recordings,if any to the contrary of my/our reasons for mis sell set out below.

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 loan 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.

3) We/I were told that if we did not make a claim,or go into arrears on the ppi ,after 5 years we would receive the cashback of ppi but this would not include the interest made on these payments that we paid over the 5 years.

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 Barclays pays them 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 on the above loan

I found this post whilst looking through all the info on this fantastic site. Thank you to the original post - I'll crack on!!

-taff

They can try it but First Plus have already rejected their complaint because they didn't sell it to them. It was sold ot them by a different company that has subsequesntly gone bust, and which is before the regulation date of Janaury 14th 2005.


The FOS might know who the insurer was at the time it was sold to you.