Barclays First Plus Loans interest rates

amersall

jayneshusky said:

Email complaint to Elderbridge last night so wait and see what comes back 

Fingers crossed 

amersall

Thrugelmir said:

jayneshusky said:

Hi new here is the complaint that frist plus interest rates seem to go up and not come down with BOE rates as had a lone with them from 2007 ended 2018 but elderbridge had taking over few years before that. And I did call frist plus years ago as I was my rate hadn't gone down they said  Their rates are linked to the financial market not bank of englands base rate. 

Unfortunately lenders rates are based on the cost of their borrowing to fund the loans. Adverse lenders aren't able to borrow at rates linked to BOE base rate. 

You are right but at least Elderbridge are now using BOE rates. 

Bearwash

I too have one of these poisonous loans going back to 2006 which is still being charged at very high interest rates.Unfortunately I do not have a copy of the original loan agreement and whence the interest clause.If I  lodge a complaint with Elderbridge should I keep my complaint very concise and generic -any advice appreciated!

amersall

All you need to put is that you believe you were unfairly over charged interest on this loan due to the interest rate clause. Keep it simple.
You can make a complaint to Elderbridge by email, or write if you prefer. You only need account number and names if joint loan, and address.

Sim1999

bulldogforever said:

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..

Hello, did you manage to claim compensation? I am similar to your case, took a loan in 2006 around 65000.

kingsbury382

Hi...just stumbled across this thread.  I also took out one of these FP loans years ago (£95,000), spent years paying it off, only to find hardly any progress against outstanding balance.  I paid it off back in 2013...best thing (still painful though) I ever did.

Has there been any successful claims yet (a year on from the 1st post)?  I'm about to dig out all my paperwork and start this off as well...

thnx.

[Deleted User]

kingsbury382 said:

Hi...just stumbled across this thread.  I also took out one of these FP loans years ago (£95,000), spent years paying it off, only to find hardly any progress against outstanding balance.  I paid it off back in 2013...best thing (still painful though) I ever did.

Has there been any successful claims yet (a year on from the 1st post)?  I'm about to dig out all my paperwork and start this off as well...

thnx.

You could try but you may well run into the limitations rule of 6 years from opening the account and 3 years from knowing, or when you could reasonably have known, you had cause for complaint (which closing the loan counts as) - I wouldn't hope for anything and then see what they come back with. They will likely have deleted all your records too per the DPA/GDPR rules which is usually to keep data for 6 years so hopefully you have everything

amersall

Sim1999 said:

bulldogforever said:

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..

Hello, did you manage to claim compensation? I am similar to your case, took a loan in 2006 around 65000.

  There are  payments being made for these loans re the interest rate with FOS. Some have had the "time barred"  not upheld but Elderbridge are making "goodwill gestures". Send a complaint to Elderbridge, they are not accepting anymore complaints as FOS are dealing with these, when you get a response from them then send it to FOS. Keep it simple.
You believe you have been overcharged interest on this loan over the term and do not believe this loan was sold in your best interest. Keep this thread updated in case you need more help.customer.services@elderbridge.co.uk

amersall

kingsbury382 said:

Hi...just stumbled across this thread.  I also took out one of these FP loans years ago (£95,000), spent years paying it off, only to find hardly any progress against outstanding balance.  I paid it off back in 2013...best thing (still painful though) I ever did.

Has there been any successful claims yet (a year on from the 1st post)?  I'm about to dig out all my paperwork and start this off as well...

thnx.

  There are  payments being made for these loans re the interest rate with FOS. Some have had the "time barred"  not upheld but Elderbridge are making "goodwill gestures". Send a complaint to Elderbridge, they are not accepting anymore complaints as FOS are dealing with these, when you get a response from them then send it to FOS. Keep it simple.
You believe you have been overcharged interest on this loan over the term and do not believe this loan was sold in your best interest. Keep this thread updated in case you need more help.customer.services@elderbridge.co.uk

SilverJohnx

My experience with the Financial Ombudsman:
To me they are not fit for purpose; they lied to me and wasted my time. (I could have written a longer letter to explain to you all why I felt this way but I don't want to waste your time. So, please read the reviews on trustpilot first.)

Having lost precious 8 months with the FO, I have now decided to take Elderbridge to court. Their interest rates do not make sense.
 
How to work out Elderbridge's Interest Rates?   
Elderbridge sends out statements on request. But these statements often do not indicate anything about the interest rates. They state the interest amount taken but you need to work out the interest rates yourself for each month. (Bear in mind that they apply interest rates to my account on a daily basis should I miss a payment). To my complaint they told me they applied 10% variable interest rate. However, their recent statements suggest that they applied 9.612%. Can this be true?

I am trying to work out the exact interest rates applied to my account. However, I am not 100% sure if my calculations are correct:

-Secured loan principle £10,000, PPP loan £2,444 (Total Principle £12,444). Borrowed on 1 March 2007. Length of agreement 25 years (300 months). The PPP repayments ended on 1 March 2012. (With regard to the discrepancies on the PPP and repayments made prior to 2016 I am going to contact Barclay's. If they try to fool me around like Elderbridge did, I will also take them to court.)

With the above in mind, I worked out the total principal to be £10,000 from 1March 2012. (Make sure what your total principle should be if you were missold PPP as part of the cash loan)

INTEREST (FHBR 1.0)         CREDIT                                 BALANCE 

£70.89                                    £103.04            -32.15

12.3648%                                                                       New Balance    £8,594

Have I calculated the interest rate correctly? Or do you think Elderbridge applied a rate of 9.612% to my account?