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First Plus Interest Rate Rise
Hi,
I'm aware there are plenty of threads on First Plus already but can't find anything the same as this....
We took out a First Plus loan in 2007 and, somewhere around 2008/9, just as the BofE interest rates were dropping through the floor we received a letter from First Plus telling us that the rate on our loan was going up by 1%.
I know that FP are able to vary their interest rates to protect their profits or somesuch, but I believe the rules also state that they are only able to increase their rates by 2 x whatever the BofE does. To my mind this would mean that they were completely breaking the rules increasing the rates at a time when the BofE were reducing theirs.
Since that time, for a variety of reasons, I have got into real financial trouble which we are only just beginning to come through now. I can't lay all the blame at FP and their rate rise but the £50 or so a month it added to the loan certainly didn't help!
Is there anything at all I can do about this? I don;t even know where to start. It's always irked me thinking about this but I've only just started to think about doing anything now, mainly because I've been such a mess recently that I can only really start to think about it now.
Any help at all would be greatly appreciated.
Thanks,
Rich
I'm aware there are plenty of threads on First Plus already but can't find anything the same as this....
We took out a First Plus loan in 2007 and, somewhere around 2008/9, just as the BofE interest rates were dropping through the floor we received a letter from First Plus telling us that the rate on our loan was going up by 1%.
I know that FP are able to vary their interest rates to protect their profits or somesuch, but I believe the rules also state that they are only able to increase their rates by 2 x whatever the BofE does. To my mind this would mean that they were completely breaking the rules increasing the rates at a time when the BofE were reducing theirs.
Since that time, for a variety of reasons, I have got into real financial trouble which we are only just beginning to come through now. I can't lay all the blame at FP and their rate rise but the £50 or so a month it added to the loan certainly didn't help!
Is there anything at all I can do about this? I don;t even know where to start. It's always irked me thinking about this but I've only just started to think about doing anything now, mainly because I've been such a mess recently that I can only really start to think about it now.
Any help at all would be greatly appreciated.
Thanks,
Rich
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