Barclays / First Plus Help

Fullspizz

Hi,
I am after some advice regarding my First Plus account/ppi claim.
We took out a loan with them back in 2006 and had ppi included in the deal.
We claimed for the PPi back in 2010, as it wasn't explained that it was just for the first 5 years.
We got redress back for what we had paid out plus interest.

I have noticed though, that our monthly payments are exactly the same as when we had the PPI on the loan?
Am I correct in thinking that the account should have been reset, as if there had never been any PPI?

Thanks

amersall

Your monthly payment should have reduced by the PPI monthly amount, the balance should have reduced by the total PPI amount also.

amersall

Was this loan sold through a broker? if it was then this may be why it was not reset.

McKneff

Sorry, but has it taken you 4 years to notice this ?

amersall

It does seem a long time I agree, maybe like a lot of others who won miss sell with this company, they were just glad to get the PPI back as in some cases PPI was well into the thousands with only 5 years cover but repaid over the whole loan term with interest.

Nasqueron

amersall wrote: »

Your monthly payment should have reduced by the PPI monthly amount, the balance should have reduced by the total PPI amount also.

Would that not rely on the loan people reducing the balance rather than giving a payment though? It suggests the OP received a payment for the refund rather than having the loan reduced and recalculated.

OP can you clarify - did you get a payment from them directly? If so, it is unfortunate as you should have rejected this at the time and asked them to reduce the balance. If you did get a repayment did you use it on the loan or spend it?

Fullspizz

amersall wrote: »

Was this loan sold through a broker? if it was then this may be why it was not reset.

It was originally sold through a broker, but they were no longer around. Claim was processed by FP themselves.

Fullspizz

McKneff wrote: »

Sorry, but has it taken you 4 years to notice this ?

TBH, we received the payment back and thought that was that. I then thought that if the loan was to be free of PPI, then surely the monthly payment should be adjusted accordingly.

Fullspizz

Nasqueron wrote: »

Would that not rely on the loan people reducing the balance rather than giving a payment though? It suggests the OP received a payment for the refund rather than having the loan reduced and recalculated.

OP can you clarify - did you get a payment from them directly? If so, it is unfortunate as you should have rejected this at the time and asked them to reduce the balance. If you did get a repayment did you use it on the loan or spend it?

They gave us a refund at the time, after looking into paying it off the balance with them, it didn't make much of a difference over the whole term. To put it into context, I asked earlier this year for a redemption figure (original amount of £40k back in 2006 over 15 years+ppi on top) and they quoted me £43k to pay it off.
Anyway, surely the monthly payment amount should be reduced as I am no longer paying for the PPI part??
That is the only part I am struggling to comprehend.

amersall

Fullspizz wrote: »

They gave us a refund at the time, after looking into paying it off the balance with them, it didn't make much of a difference over the whole term. To put it into context, I asked earlier this year for a redemption figure (original amount of £40k back in 2006 over 15 years+ppi on top) and they quoted me £43k to pay it off.
Anyway, surely the monthly payment amount should be reduced as I am no longer paying for the PPI part??
That is the only part I am struggling to comprehend.

This would have made a difference over the remaining term had you repaid the redress into the loan, the monthly PPI plus interest over the remaining term would have meant you would have repaid the money you got back 3 or more times over.

What did you actually get back?.

Did you claim from FSCS for redress when the broker went bust? as they sold you the PPI not FP.

I have never known FP repay a brokers PPI miss sell, as it was brokered the loan cannot be reset as the broker does not exist to do this for you.
Could you give us more info to better help you going forward?.

amersall

Would that not rely on the loan people reducing the balance rather than giving a payment though? It suggests the OP received a payment for the refund rather than having the loan reduced and recalculated.

If redress was paid as in miss sell, the op gets the PPI they have paid to date plus interest plus the 8% and the whole PPI taken from the loan and the monthly payment reduced by the PPI monthly amount, as we are discovering, this was done through a broker who went into liquidation that FP ( never known FP do this when it was a broker tbh) repaid, the op chose to take the redress and not have it removed from the loan balance so the loan will not be reset, this will cost more in the long term with interest and the whole PPI still on the loan.