Soapybubbles v Firstplus Loan PPI

[Turboman]

Right---have moved the question here Soapy (have I seen you somewhere else-lol---in order that it don't slow down general discussion in JD thread

Hello all.

Had a phone call earlier with those lovely people at FirstPlus/Barclays.

My father has worthless PPI which insures him for 5 years but he pays for it over a period of 1o years. After the first 5 years have passed he is entitled to the 'infamous' cashback offering from FirstPlus. They're nice like that you know.

He's coming up to the first 5 years of the loan in the next 6 months and so would be entitled to the cashback. I asked on the phone today can he accept the cashback offering and still pursue for any extra monies due to him once a decision was reached on the court case. I was informed that should he accept the cashback offer he would have to drop any complaints about PPI. I then asked what if the PPI had been found to have been missold after he accepts the cashback. Surely he is entitled to claim that money? Again I was told, if he accepts the cashback option he has to drop the PPI complaint. Can they do this?

I also asked how much the caskback would be. I was informed £7347. I then asked how much my father would actually pay for the worthless PPI including interest over the period of 10 years. He told me he couldn't give me an exact figure as the interest changes regularly. I then asked does the amount he could receive in cashback also change with the interest rate. Silly question, eh? As FirstPlus interest rates only go one way.

He's paying £87.76 a month over a period of 120 months for worthless PPI.

This amounts to £10531 on it's own WITHOUT interest on it as I really wouldn't know where to start. If someone could be so kind as to perhaps work out an average amount of interest on the PPI this would be appreciated.

Also if FirstPlus/Barclays were so confident in the way they sold their PPI why would they have to ask their customers to drop their PPI complaints? What have they got to fear? This is blackmail.

Is there even any rumours about the decision from the judge yet? A whisper? A squeak? Anything to make me smile.

[Turboman]

Re: Soapybubbles v Firstplus Loan PPI

Soapy

Give me

• Date of 1st payment (approx)
• Cash Loan amount/& monthly payment/&ge APR or AIR
• PPI Loan Amount/& monthly payment
• Total overall Loan/Total overall monthly payment ---this to cross check above as sometimes there exists confusion
• No of payments made
• Present Monthly Payment/%ge APR or AIR

I will work out what the figures are and I will PM Di30 to see if she has experience of claims actually taking the cashback and whether the resulting monthly payment was (very slightly) reduced

And can you type out the bit which details cashback sums from agreement-ie Amount + effect on monthly payments thereafter ( if at all)

Thanks

Turbs

[di30]

Re: Soapybubbles v Firstplus Loan PPI

Hello

Thanks for your pm Turbo, just arrived back home now.

One of mine was a cashback ppi loan, but I settled the loan when remortgaging before the 5 years was up, but what I would like to say is that I am aware that you can still make a reclaim and receive your cashback after 5 years, although its likely to be reduced.

Will see if i find any other posts in relation of this matter.

[Turboman]

Re: Soapybubbles v Firstplus Loan PPI

Hello

Thanks for your pm Turbo, just arrived back home now.

One of mine was a cashback ppi loan, but I settled the loan when remortgaging before the 5 years was up, but what I would like to say is that I am aware that you can still make a reclaim and receive your cashback after 5 years, although its likely to be reduced.

Will see if i find any other posts in relation of this matter.

Think we've come across the agreements on PAG or Firstplus before----but so much water under the bridge---I can't remember where they are---but Soapy seems organised so we might see the agreement clauses again

[skv123]

Re: Soapybubbles v Firstplus Loan PPI

I have encountered the cashback situation before.

It al depends on the size of the PPI and the remaining time left on the loan. But if the consumer has kept to the T&Cs then they should be entitled to the cashback whether they complain about the PPI or not.

What I have experienced with the cashback is that First Plus make efforts to issue a refund taking it into account.

What we had was that client had paid say £4000 for PPI to date and statutory interest.

The premium was £3000.

Over the term of the loan they would have paid £6500 for PPI in total.

Therefore First Plus gave us options. Either take the £4000 in total meaning clients have received £7000 and the monthly payments will increase slightly to allow for this.

or take £3500 and the payments will stay the same.

or take nothing and reduce the payments accordingly.

There was some argument that the cashback shouldn't be taken into account at all as it is described as "an amount equivalent to the PPI premium" and as such could be argued to not have anything to do with the claim. But the FOS try to be "fair and reasonable" and as such an argument like that didn't seem to get anywhere...