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Barclays First Plus Loans interest rates

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Mr_Meggo
Mr_Meggo Posts: 16 Forumite
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edited 28 January 2021 at 9:29AM in Loans
After 10+ years of campaigning against Barclays FP loan clause fairness the FOS has done a complete U turn and there is now a willingness to find in favour of complainants and for the above to negotiate settlement terms for customers who complained over the interest clause.  I have contacted the FOS asking them to review the 10 year old decision on my case which they have confirmed they are able to do and are now considering. 
I would suggest that if you have, or had one of these loans you make an appropriate complaint and claim. Of course if you still have a loan it will be now with Elderbridge.
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  • amersall
    amersall Posts: 17,010 Forumite
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    All that hard work paid off eventually but it shouldn't have taken so long, at last a victory for FPC group. Barclays should now pay redress to all customers and admit defeat for selling a product that had such ambiguous terms and conditions, this is just the beginning, anyone who has one of these loans, get a claim in now. To all of those who gave negative and downright rude comments regarding this issue on this site some years ago, who has had the last laugh? US 😁😁
  • Mr_Meggo
    Mr_Meggo Posts: 16 Forumite
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    edited 28 January 2021 at 12:04PM
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    I wouldn't worry too much about previous comments and expert opinions.  People believed they we were being ripped off and stuck to their guns. Now 10+ years on they have been proved right.  It's a good outcome but how many people lost their homes because of this.  I just want everyone who has overpaid interest to get it back by making a complaint and claim.
  • Bettyboo11
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    Hi are you able to provide any links to help with the process as I don’t know where to start really. My loan was settled in 2018 but I’m hoping I can still complain 
  • Mr_Meggo
    Mr_Meggo Posts: 16 Forumite
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    Hi are you able to provide any links to help with the process as I don’t know where to start really. My loan was settled in 2018 but I’m hoping I can still complain 
    You need to complain to FirstPlus (they are still listed as an active company) and/or Elderbridge. Who bought FP loan book in 2015. Just tell them very simply that you believe you were unfairly overcharged  because of the interest rate clause. Keep it simple.
  • bulldogforever
    bulldogforever Posts: 23 Forumite
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    edited 30 January 2021 at 1:43PM
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    amersall said:
    All that hard work paid off eventually but it shouldn't have taken so long, at last a victory for FPC group. Barclays should now pay redress to all customers and admit defeat for selling a product that had such ambiguous terms and conditions, this is just the beginning, anyone who has one of these loans, get a claim in now. To all of those who gave negative and downright rude comments regarding this issue on this site some years ago, who has had the last laugh? US 😁😁


    I am essentially new to this forum as it hasn't really appealed to me before, I really am not in a position to comment on the "negative and downright rude comments", I would however find it very curios if such an attitude persisted, although not unsurprising.

    Would a complaint like this do:-

    Dear firstplus

    Re the  loan no ______in my name as above

    Please find 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..


  • amersall
    amersall Posts: 17,010 Forumite
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    Keep it simple, use the answer by mr_Meggo that is all that you need to do for now, let us know any responses you get
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Hi are you able to provide any links to help with the process as I don’t know where to start really. My loan was settled in 2018 but I’m hoping I can still complain 
    A letter would help here.
  • bulldogforever
    bulldogforever Posts: 23 Forumite
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    edited 2 February 2021 at 4:09PM
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    DCFC79 said:
    Hi are you able to provide any links to help with the process as I don’t know where to start really. My loan was settled in 2018 but I’m hoping I can still complain 
    A letter would help here.
    I think you just write to firstplus (probably best to  send it recorded delivery) and as simple as you can my letter above maybe a bit more detailed than needed ( I had a bit of the cob on)
    clearly just put in the loan details and that their failure to reduce rates was unfair, it is that simple I think, then if they do not offer a redress  you write off to the FOS
    its that simple and you could get a lot of your money back

    good luck 
  • [Deleted User]
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    The moral of the story being what goes up doesn't always come down.
  • Almost_There_3
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    I have been trying to figure out how/where to submit the complaint. Is there an online way to do this via Barclays - I don't see anything obvious?  or would it need to be a letter to them/First Plus.  Any advice would be greatly appreciated.
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