firstplus interest rates

[Deleted User]

Deleted_User said:

Unless the rate was guaranteed to drop, then no.

bulldogforever said:

I was hoping for a more positive attitude from MSE members 

 

Okey dokey.

Unless the rates was positively guaranteed to drop, then positively not.

bulldogforever

Deleted_User said:

Deleted_User said:

Unless the rate was guaranteed to drop, then no.

bulldogforever said:

I was hoping for a more positive attitude from MSE members 

 

Okey dokey.

Unless the rates was positively guaranteed to drop, then positively not.

my sides are splitting
So when I find it straight from the horses mouth.... phht 

It is a matter of contractual fairness and fairness of the credit relationship

Onwards

bulldogforever

Thrugelmir said:

Second charge mortgage holders face the risk of default shortfalls. Risk unfortunately is priced. Lenders aren't financed by the BOE. 

I find this response somewhat curious

[Deleted User]

bulldogforever said:

Deleted_User said:

Unless the rate was guaranteed to drop, then no.

I find this response somewhat negative and after the post from Edwards97 and further digging incorrect.

To expand searching through posts on MSE I found reference to a Freedom of information request to the financial ombudsman  on the subject, from the information in that post I have been able to confirm that he is not alone.

According to the FOS “Of the cases we have received about the interest rate variation clause in Firstplus secured

loan contracts, 150 have resulted in an informal offer of settlement by Firstplus. There are

currently 60 cases about the same issue that we are still considering. “

This is an extract from a letter referenced FOI 3977 by the FOS and can be easily verified by searching “FOI 3977 FOS”

So it appears that cases are being settled and the FOS are actively involved in trying to resolve this. 

I was hoping for a more positive attitude from MSE members such as yourself, one that would save me and potentially thousands of others money as implied by the name “money saying expert” however the response I have received from you was an emphatic no! I just don’t understand why you come across as so negative and unsupporting about this issue?

 

I and tens of thousands of others have been treated unfairly on this matter and I was hoping for help and support from this forum to get redress, not just for me but for many others, there is a clear historic unfairness here.

My use of figures has been questioned because one figure very neatly comes in at 5% for much of the last few years, I use this figure as the calculations can be complex and to demonstrate the unfairness, Firstplus loans varied in size and loans of 50K or more were not uncommon, running a 50k loan over 15 years through a mortgage calculator with 5% gives an over-payment of £18K 

This is only a starting point as interest at 8% on overpayments would also be due (like with PPI)

Even if the loan has run its course and been paid of a substantial redress could be due and yes we are talking about tens of thousands of pounds of hard working peoples money here  

Perhaps your use of figures was questioned because you are evasive about answering questions about the T&C you agreed to, vague with numbers,  yet waffle on about Shakespeare.  If anyone has a dispute the course of action is universally the same, complain to the lender in the first instance and if that doesn't work for to the ombudsman.  It's probably best to get your complaint in sooner rather than later because if the lender does start paying out compensation you want to be one of the first with your snout in the trough otherwise you'll end up like those who complained to Wonga too late and will only receive pennies in the pound if that.

bulldogforever

Lover_of_Lycra

I am traversing from the realm of rigidly sticking to a “Pound of flesh” (Merchant Of Venice)  T&C mentality to an “undiscovered country” (Hamlet) of Fairness

Shakespeare is timeless and I look forward to exploring more of the Bards work, not to sure that I will ever grasp it in its original Klingon thou.

It is the central unfairness I am concerned with 

Thrugelmir it is about being fair to the customer

 

bulldogforever

Lover_of_Lycra said:

bulldogforever said:

Deleted_User said:

Unless the rate was guaranteed to drop, then no.

I find this response somewhat negative and after the post from Edwards97 and further digging incorrect.

To expand searching through posts on MSE I found reference to a Freedom of information request to the financial ombudsman  on the subject, from the information in that post I have been able to confirm that he is not alone.

According to the FOS “Of the cases we have received about the interest rate variation clause in Firstplus secured

loan contracts, 150 have resulted in an informal offer of settlement by Firstplus. There are

currently 60 cases about the same issue that we are still considering. “

This is an extract from a letter referenced FOI 3977 by the FOS and can be easily verified by searching “FOI 3977 FOS”

So it appears that cases are being settled and the FOS are actively involved in trying to resolve this. 

I was hoping for a more positive attitude from MSE members such as yourself, one that would save me and potentially thousands of others money as implied by the name “money saying expert” however the response I have received from you was an emphatic no! I just don’t understand why you come across as so negative and unsupporting about this issue?

 

I and tens of thousands of others have been treated unfairly on this matter and I was hoping for help and support from this forum to get redress, not just for me but for many others, there is a clear historic unfairness here.

My use of figures has been questioned because one figure very neatly comes in at 5% for much of the last few years, I use this figure as the calculations can be complex and to demonstrate the unfairness, Firstplus loans varied in size and loans of 50K or more were not uncommon, running a 50k loan over 15 years through a mortgage calculator with 5% gives an over-payment of £18K 

This is only a starting point as interest at 8% on overpayments would also be due (like with PPI)

Even if the loan has run its course and been paid of a substantial redress could be due and yes we are talking about tens of thousands of pounds of hard working peoples money here  

 It's probably best to get your complaint in sooner rather than later because if the lender does start paying out compensation you want to be one of the first with your snout in the trough otherwise you'll end up like those who complained to Wonga too late and will only receive pennies in the pound if that.

Thanks for the heads up re Wonga scenario,
would a letter like this do?

Dear firstplus

Please fiind below my formal complaint re the variation of interest rates on my loan.

 

In 2006 I borrowed 50K from you the rate of 8.4 and this went up to 9.5% where it has broadly stayed ever since. The loan Term was for 15 years, I managed to make a lump sum payment to clear it two years ago.

The loan was sold as “like a mortgage” with a variable interest rate, my expectation was that rates would rise and fall as it was a variable rate and that this would be in line with interest rates in general. the loan agreement makes some reference to the now defunct FHBR. I believe that it was unfair, not only in the common day understanding of the word but also in law, both generally and under the UCR provisions, not to reduce the rate on the loan.

A fair approach would now be to treat the loan as a tracker linked to the FHBR up until it stopped being published and thereafter to what it would be (my understanding is that this can be worked out and is also available from the FLA)

I note that there is no mention of a floor on rates within my agreement and therefore would expect rates to drop from 9.5% to 3.5% for much of the term of the loan

Further statutory interest on these over-payments of my money to you is due back to me..

I have now found another MSE thread that appears more hopeful on this and think I will go ahead with my complaint as simplified in this edit

hopefully this link works

https://forums.moneysavingexpert.com/discussion/6236216/barclays-first-plus-loans-interest-rates?fbclid=IwAR3wBXpQmlO9IS2jDlCoIj4Y2DCMA7M5Pkup6hamALdeN5SoN_AY

thanks for the heads up again