First plus offer

MumoftwoMen

Hi Amersall, I was right the payment is for future PPI payments, with them being the PPI broker only First Plus are able to re-calibrate the loan, so they are offering the amount as then all my PPI will have been paid back which is fair. They do not give 8% on the future payments as I obviously have not paid them yet. They have also stated that should I wish to pay this amount to my loan they will pay the additional charges should they incur from FP for them sorting the loan back to before the PPI added. So to clarify they are paying all my PPI back, will first plus though, fix the loan should we decide to pay this money to it? Also will it be work it as I will only go back to the original payment anyway? Can't see them dropping the original payment amount can you? Three years left to go.

-taff

So First PLus have told you it will cost you money to restructure the loan if you decide to pay the £1972 to it?

amersall

You need to ask FP and the Broker, if you pay this back to the loan will the monthly payment reduce by the PPI monthly amount, get this in writing, if it does not, keep the money.
On the other hand, if you repay the money to the loan and they will not reduce the monthly payment, the balance will go down anyway and save you a lot in interest over the remaining years, it is your call.

You have had a decent win after having the cash back :D
Brilliant :j

MumoftwoMen

The broker Taff has implied in the letter that FP could charge us for adding the money to be re-scheduled but are saying we will be at no loss as they will pay it up to the amount offered. (i.e If they charge us £1800 they will pay that, if they charge us £2000 we will have to make up the difference.
First plus is who we have our loan with, its the brokers that we have the PPI with so they are re-paying us back.

MumoftwoMen

Amersall, thats a tricky one, I get the impression reading the letter that if we pay the amount to the loan, the account will be re-scheduled, I don't understand the gaining interest bit, sorry...
If my original amount to pay each month was £251 thats what it should go back too, if we pay in the amount, cancelling the PPI, can you tell me how the interest will lower? I thought that with the PPI basically being another loan and I am being paid all that back, how will it lower, surely my payments would still be £251 for the next three years and not lowered. (My brain doesn't compute this bit lol) xx
As you said a decent result and all down to you by the way, thank you much for all you help and advice, you to taff xx

amersall

If you repay the offer of the £1972 back to the loan, this is £1972 off the balance of the loan, the interest on this over 3 years (at the rates FP charge) will save you the 3 years interest on that amount, when rates rise and they will, FP will jump on that, you will not be paying interest on that £1972 amount because it is not there......if they reschedule the loan and they remove the monthly PPI payment amount, you pay the normal loan payment and no interest on the £1972 too.


Is that clearer?.

Glad to have helped you, love a win with FP x

MumoftwoMen

Got it lol, (Hammer and chisel needed). I'll clarify everything before making a decision, my hubby's home tonight so will re-read the whole thing and take it from there. Thanks again Amersall for everything x

amersall

You are very welcome x