Rule of 78 Settlement figure - making a claim

marshallka

I have just read on the consumer forum something about claiming under the rule of 78 for unfair charges added to settlement figures. I have googled this and i have made a claim for firstplus (and a ppi claim) for a loan i took out some 8 years ago and settled just over 6 years ago. According to this. (click the bit where rule of 78 is mentioned)

http://www.chadwicklawrence.co.uk/Default.aspx?PageID=17


http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/59087-rule-78-unfair-could.html


someone made a claim and now this firm of solicitors are saying if you feel it was unfair (as i feel our was) then make a claim. We originally took a loan out for £17k and then we had ppi added (single premium) for £4150 and then repaid it for two years nearly and paid them £24k back. I really want to pursue this but as i say not much about it yet.

petermb_2

There are two or three issues within your agreement where you could make a successful claim

marshallka

Are the two issues the ppi being missold and the rule of 78 was an unfair amount to expect us to settle. Whats the third? Also, what about our time scale. Anymore advice appreciated.

Rafter

The main issue here is not rule of 78, but the way that PPI, interest and probably up front fees were added to your account.

No idea how you will get on making a claim given it is so old and don't know what the rules at the time were.

I think you are unlikely to get far, but might be worth a 'free' initial conversation with a solicitor.

R.

marshallka

Rafter wrote: »

The main issue here is not rule of 78, but the way that PPI, interest and probably up front fees were added to your account.

No idea how you will get on making a claim given it is so old and don't know what the rules at the time were.

I think you are unlikely to get far, but might be worth a 'free' initial conversation with a solicitor.

R.

I have sent firstplus a letter about the ppi and the settlement charges being unfair. I don't want to involve a solicitor as such as they charge a lot and it should be something i can do myself according to others. I think my next step if firstplus refuse to pay anything is to get the subject access ordered. Am i correct, this is to see what information they have and i hope they have kept copies of the telephone conversations as i can remember crying at the time i received the settlement figure and telephoning them and being explained about this rule of 78 way to get at the figure. I will also contact the FOS as suggested on here as i think the main reason they mention claim within six years if that records are only meant to be kept for that long. I asked firstplus last week for a copy of the agreement and they responded promptly in a few days with this info so i am assuming they have all the rest of the info too.

thanks, anyway

petermb_2

marshallka wrote: »

Are the two issues the ppi being missold and the rule of 78 was an unfair amount to expect us to settle. Whats the third? Also, what about our time scale. Anymore advice appreciated.

There are likely to be three issues where successful claims can be sought.
There is likely to be an issue with the agreement itself looking at the age of the loan. There will also be an issue with single premium ppi. Depending on how you got the loan there may also be an issue with commin law.

On the face of it the loan could well be deemed unenforceable.

PammyG_3

petermb wrote: »

There are likely to be three issues where successful claims can be sought.
There is likely to be an issue with the agreement itself looking at the age of the loan. There will also be an issue with single premium ppi. Depending on how you got the loan there may also be an issue with commin law.

On the face of it the loan could well be deemed unenforceable.

How can you be so certain?

Please share your knowledge more fully.

marshallka

yes, please do tell more.

Some more info here. The loan was taken out from a telephone call to Firstplus direct and no brokers were involved. (although the "for broker use only" box has a date on.) We were told the ppi was needed for the loan and i did argue the settlement amount when we remortgaged and paid them back.

My actual agreement had
Amount of Loan £17,000
ppi (optional) 4.163.30
monthly interest rate 1.097
apr 13.9%
estimated number of monthly payment 160
monthly payments (variable) 281.25

The payment protection bit has a scribble on the no and a tick on the joint life, single accident, sickness and involuntary unemployment. This was all pre filled in by firstplus when they sent them out to us for signatures. So in fact they crossed out the ppi and said we had opted for it. We were sold it because they pressured us into it and did not explain all about it.

On the agreement there is no total charge for credit or no total amount payable.

petermb_2

PammyG wrote: »

How can you be so certain?

Please share your knowledge more fully.

I am certain having read QC opinion on the subject, which is based on Case law.

PammyG_3

petermb wrote: »

I am certain having read QC opinion on the subject, which is based on Case law.

Surely the opinion is general.

How can you tell specifically that there is a case?

marshallka

Looking back at Peters posts i think he does this for a living. Helps people get money back. I have pm'd him for more info but i think its a company by looking back on his previous.

I don't want to involve a company if this is something i can do myself. I am googling all the time for anything relating to this about agreements over a certain number of years old. Nothing as yet but i will carry on trying. I have now drafted my SAR letter for Firstplus.