First Plus Update

Firstpluschamp

Halifax, I posted my reply to you on the FB group earlier too.

Can we go back there for a bit of advise on my next move as I don't feel that FP have complied with the court order, but not sure what I can/should do next!

MUM40

we have had two loans from FP, one in 2000 and one in 20005 do you think that we could claim for the 2 loans?

halifax71

MUM40 wrote: »

we have had two loans from FP, one in 2000 and one in 20005 do you think that we could claim for the 2 loans?

The issues applies to old loans as well.

The key issue here is that every base rate increase was applied to the APR, whilst not one single decrease in base rates was applied to the APR.

Just tailor the letter to cover your circumstances and get the question asked, you've been paying too much, what are they going to do about it.

Good luck.

MUM40

Halifax, thanks for your reply, I,m off to find my detailed of my two ligand, and letter will be sent.

Reddh_Legend

This battle has always been about fairness and will not change.

Many customers are already in the process of writing to first plus and they now have an opportunity to save face as the offered resolution to fix April back to inception, whilst costly, is nothing like as bad as it could have been.

halifax71

halifax71 wrote: »

Something like this should do.

Please send to:
Firstplus - [EMAIL="customercare@firstplus.co.uk"]customercare@firstplus.co.uk[/EMAIL]
THE FINANCIAL OMBUDSMAN SERVICE, [EMAIL="complaint.info@financial-ombudsman.org.uk"]complaint.info@financial-ombudsman.org.uk[/EMAIL]
THE OFFICE OF FAIR TRADING, [EMAIL="enquiries@oft.gsi.gov.uk"]enquiries@oft.gsi.gov.uk[/EMAIL]
THE FINANCIAL CONDUCT AUTHORITY. [EMAIL="consumer.queries@fca.org.uk"]consumer.queries@fca.org.uk[/EMAIL]

---

THIS NOTE IS SENT TO FIRSTPLUS, THE FINANCIAL OMBUDSMAN SERVICE, THE OFFICE OF FAIR TRADING, & THE FINANCIAL CONDUCT AUTHORITY

I am writing as a dissatisfied First Plus customer. For some years now, many customers have been complaining that the interest rate variation clause(s) in First Plus secured loan agreements is unfair. The result being that all customers, including myself, are being forced to repay significantly more than could reasonably be expected when the use of their widely drawn interest rate clause is applied in an imbalanced and unfair manner.

Last month, a fellow First Plus customer had a court rule that their interest rate variation clause is unfair under 5(1) of the Unfair Terms in Consumer Contract Regulations. The variation clause in question is the same clause as the one in the majority of First Plus customers agreements - namely clause 7. The key wording that is significant is as follows:

"We may from time to time vary our interest rate. We may increase or decrease our interest rate to reflect a change which has occurred, or which we reasonably expect to occur in interest rates generally or to ensure that our business is carried on prudently, efficiently and competitively"

[DELETE THIS NEXT BIT IF NOT RELEVANT TO YOU
There is a variation of this clause that includes a reference to FHBR:

"The interest rate on your account will not in any twelve month period, vary by more than twice the variation in the Finance House Base Rate published by the Finance and Leasing Association during the same period. If for any reason, the Finance and Leasing Association ceases to publish the Finance House Base Rate we may refer the variation in our interest rates to any other Base Rate which in our reasonable opinion best matches that rate." ]

The key elements of the clause are detailed as above and the declaration that the wording is unfair should apply to all customers, including me.

I understand a copy of the court judgement has already been sent to you. As you will have seen the judge has ruled that the contract can continue. The understanding is that the declaration of the clause being unfair would strike the clause from the contract thus disabling the ability of the lender to vary the rate with the loan reverting to the incepted APR and the loan being restructured and reset accordingly.

Can Firstplus please advise whether or not it is your intention to retrospectively revert my loan to the inception rate APR and apply it as a fixed rate going forward?

Can the OFT, FCA and FOS please advise me what action it intends to take against Firstplus, as I continue to suffer financially from the penal nature of the application by First Plus of their interest variation clause, which I now note to be legally unfair.

I would respectfully ask that you provide a response to myself within 10 working days.

Regards

Just a sneaky bump to try and get a few more of these sent in.

Firstplus will probably reply to the email saying they can't enter into discussion via email. Just call them and tell them you want your rate reducing as the variation clause has been ruled legally unfair, and ask them to respond in writing if they refuse.

The FOS will tell you it'll be about 6 weeks before they can respond.

The FCA will say they don't have responsibility yet for secured loans and that you must wait for the OFT to reply.

The OFT will provide a holding reply saying they will reply in about 10 days.

Keep sending to all 4 though.

halifax71

The OFT have replied to our groups email.

They confirm:

They note the ruling, but it does not change their public opinion, which they repeat.

- The OFT previously imposed requirement under s33a of the CCA. http://www.oft.gov.uk/shared_oft/con...first-plus.pdf

- The OFT had not found that Firstplus had acted in breach of the second charge lending guidance. ( it could be argued that this is true as the guide contains NOTHING regarding the reduction of rates, it only deals with the scenario of rate increases.

There's a lot of other waffle but essentially that is it, they're doing nothing. Why is my clause, and the other 50,000+ clauses OK? It's exactly the same wording and been administered in exactly the same way as the one that's been found to be unfair - in a court of law.


What we have here is a completely useless, bias, waste of space regulator. They infer that they have already done something, when in fact they have done nothing. They issued a s33a CCA reprimand after the harm had been done (i.e. after base rates fell), knowing full well that such reprimands have no retrospective impact (legally).

And when you ask why the reprimand was issued, or ask a simple question like "what cost increases have there been to warrant my rate being higher", or "why am I paying £8,000 more than I agreed to at inception", the OFT say they cannot say, "as it would harm Firstplus' commercial interests".

This really is a disgrace, the OFT are a disgrace.

I would urge all Firstplus customers to send the email detailed above if not already sent, and when they get the same refusals, contact your MP and demand action is taken.

iolanthe07

I admire your persistence with this, and good luck with it, but I can't help but think you're on a hiding to nothing. The only thing would be for each borrower to go to the County Court individually. In the end though, the lesson is never to take out a second mortgage ( or an unsecured loan) with a variable rate clause.

cavework

Just a simple question,
Why do First Plus customers never get a statement?
Not even once a year..Barclays select send a statement every month
Surely as customers we should be entitled to information as to how the loan stands re payments received etc without having to ask for it..
Also hindsight is a wonderful thing .. ask all those who are now getting PPI's refunded!

halifax71

cavework wrote: »

Just a simple question,
Why do First Plus customers never get a statement?!

Because they don't have to as the loans are above 25k so not governed by the CCA. Quite appalling really, this is Barclay's, bunch of shysters.