first plus PPI & rate hike,unfair relationship

tony-firstplus

Hi, Ill introduce my self. I am Tony 51, retired trying to help disabled Annie and darren caretaker, now carer. First plus victims.

I am still gathering dates and exact debts.

many years ago (2002?) Darren took a 10 year £30k secured loan at 5.5% With first plus, they added PPI to the loan at a cost of 7K

The repayments were too high so it was rescheduled in 2003 to 25 years at 5.5%, first plus charged him another £9k PPI.

later in the loan when interest rates were falling generally, First plus increased the rates to 12.5%

I am trying to draft a witness statement with the facts under section 140a of the 2006 consumer credit act. (unfair relationship)

I am asking for the primary PPI to be refunded, and the secondary PPi to be refunded and the interest to be recalculated at 5.5% for the whole loan. Back caculated on a month by month basis.

however I came against the Soulsby Vs First plus case
which judges that only live PPI cases can be refunded?

I cant find any judgements that rule that the interest rate hike was an unfair relationship.

Darren and Annie have paid first plus around £36,000 on thier £30,000 loan but now owe £48,000. they also have the first charge mortgage on this house.

Any help, case histories, guidance really appreciated. Also if any one can point me to a south coast solicitor who knows this section of law inside out. I would help them out with legal costs.

The alternative is that they get made bankrupt & evicted. There is no realistic chance of them escaping this debt as they have less than 10% equaty left.

amersall

Take a look at this site
http://www.firstpluscomplaints.co.uk/
All the info you need and some !!!!

tony-firstplus

amersall wrote: »

Take a look at this site
Firstpluscomplaints
All the info you need and some !!!!

Thanks, looks promising but I can't find a link to register :-/
Log in, resend, etc etc, no register button? Is this because I'm on an iPad?

amersall

Sorry I took so long getting back to you, I have posted on the site for help with this, don't know how long it will take them to get back but I will post as soon as I know.

brown1950

tony-firstplus wrote: »

Hi, Ill introduce my self. I am Tony 51, retired trying to help disabled Annie and darren caretaker, now carer. First plus victims.

I am still gathering dates and exact debts.

many years ago (2002?) Darren took a 10 year £30k secured loan at 5.5% With first plus, they added PPI to the loan at a cost of 7K

The repayments were too high so it was rescheduled in 2003 to 25 years at 5.5%, first plus charged him another £9k PPI.


later in the loan when interest rates were falling generally, First plus increased the rates to 12.5%

I am trying to draft a witness statement with the facts under section 140a of the 2006 consumer credit act. (unfair relationship)

I am asking for the primary PPI to be refunded, and the secondary PPi to be refunded and the interest to be recalculated at 5.5% for the whole loan. Back caculated on a month by month basis.

however I came against the Soulsby Vs First plus case
which judges that only live PPI cases can be refunded?

I cant find any judgements that rule that the interest rate hike was an unfair relationship.

Darren and Annie have paid first plus around £36,000 on thier £30,000 loan but now owe £48,000. they also have the first charge mortgage on this house.

Any help, case histories, guidance really appreciated. Also if any one can point me to a south coast solicitor who knows this section of law inside out. I would help them out with legal costs.

The alternative is that they get made bankrupt & evicted. There is no realistic chance of them escaping this debt as they have less than 10% equaty left.

Would suggest you post on https://www.legalbeagles.info forum who have many solicitors who can help.

[Deleted User]

I'd stay with Amersall's link in the first instance if I were you. Legal action should be the very last resort...

tony-firstplus

I think this is the last resort. They are sinking in debt. Zero spare equity. The alternative is to stop paying any one, squirrel the money away ready for when they get made bankrupt and evicted.

magpiecottage

I am not sure that using the Consumer Credit Act 2006 (which came into force on 6 April 2007) is going to help with a 2003 loan.

You might get somewhere with a PPI complaint, though - particularly if you point out that a single premium was added to the loan and the total cost of the cover over the entire loan term was never made clear.

amersall

Thanks Magpie and money, you are both correct.
The OFT have reprimanded FP regarding the unfair rate issue, thanks to the site the link of which I gave above, this has resulted in no rate rise from FP for 2 years, OFT will not disclose what they have asked FP to do as " it will harm their business".
Up until the reprimand, all FP customers had a rise every year after the first year of the loan being in place, they raise the rate if they fart the wrong way,pardon the expression but you get what I mean.

amersall

To tony-firstplus.

Send this

We/I were mis sold the PPI on the above loan account number 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 We/I 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

Unless you can prove without doubt, this policy was suitable for me/us then 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.

Adapt if you need to, see what they come back with, FPC site is not taking any new members at the moment, lots of reasons for this, it is still going as they are fighting the interest rate issue, if they do in future I will let you know.

You do not need a solicitor to help you with the interest rate issue

tony-firstplus

The unfair relationship test applies to all loans irrespective of date and the judge can change the terms, interest rate and even remove the charge against the property.