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On 03/11/2004 we took out a joint loan with Firstplus for £53300 with repayments of £527.74. APR at the time was 8.9% with monthly interest rate of 0.716. Estimated term was 180 months. On 01/02/2006 account stood at £52764.02. As we had sold the home on 20/02/2006 Rule 78 was used to calculate the settlement figure. Interest of £27332.85 was added bringing the total to £80096.87 less part settlement rebate of £25971.44. For this we were charged a fee of £60 leaving a balance of 54185.43. The transfer went ahead and £48411.79 was paid leaving a balance of £5773.64 still to be paid. However on the 01/03/2006 they added on interest of £237.16 bringing the amount up to £6010.80. Apparently this interest was for part month of February however the puzzling part is that normally when getting a settlement figure it is valid for a month.
As we were in financial difficulties we were unable to continue to make payments until 31/03/2006. We then made a payment of £100 in June 2006 but by this time the interest had increased the amount to £6004.28. On 01/01/2007 account stood at £6129.04 as we had made a few payments amounting to 379.76 but interest for those months was £438.42
From 01/01/2007 we have been able to make regular payments each month of £70. Since the 20/02/2006 we have made payments in total of £4975.43. At present the statement balance is showing as £4549.11!
In November 2010 we asked FP for a settlement figure and this was never supplied. In April 2012 we requested a statement and settlement figure as we had not received a statement for over 2 years. Initially we were supplied with only a statement but then later a settlement figure.
The settlement figure was calculated as follows;
Total amount payable under the agreement £6693.73
Less our rebate on early settlement -£2064.60
Plus administration charge £150
Total amount payable by you to settle as at 30/05/2012 £4779.13
Surely the above settlement figure is incorrect as the current statement balance shows at £4549.11. We have no idea where they got the figure £6693.73 as the original agreement was for £53300 less the Part settlement figure and other incidentals which then left a balance of £5773.64 on 20/02/2006,
Firstplus have been up to now very obstructive with supplying a settlement figure and previously the FOS had to intervene to get them to supply a settlement figure in November 2010 and Firsplus still never supplied the settlement figure. To avoid escalating interest costs we carried on paying however last month, we advised that we will be withholding payment until we had received a statement and a settlement figure. We have now received this but are gobsmacked at the high settlement amount. All we want to do is to get rid of this debt but without being ripped off!
Do you think the settlement figure is correct and fair?
As we were in financial difficulties we were unable to continue to make payments until 31/03/2006. We then made a payment of £100 in June 2006 but by this time the interest had increased the amount to £6004.28. On 01/01/2007 account stood at £6129.04 as we had made a few payments amounting to 379.76 but interest for those months was £438.42
From 01/01/2007 we have been able to make regular payments each month of £70. Since the 20/02/2006 we have made payments in total of £4975.43. At present the statement balance is showing as £4549.11!
In November 2010 we asked FP for a settlement figure and this was never supplied. In April 2012 we requested a statement and settlement figure as we had not received a statement for over 2 years. Initially we were supplied with only a statement but then later a settlement figure.
The settlement figure was calculated as follows;
Total amount payable under the agreement £6693.73
Less our rebate on early settlement -£2064.60
Plus administration charge £150
Total amount payable by you to settle as at 30/05/2012 £4779.13
Surely the above settlement figure is incorrect as the current statement balance shows at £4549.11. We have no idea where they got the figure £6693.73 as the original agreement was for £53300 less the Part settlement figure and other incidentals which then left a balance of £5773.64 on 20/02/2006,
Firstplus have been up to now very obstructive with supplying a settlement figure and previously the FOS had to intervene to get them to supply a settlement figure in November 2010 and Firsplus still never supplied the settlement figure. To avoid escalating interest costs we carried on paying however last month, we advised that we will be withholding payment until we had received a statement and a settlement figure. We have now received this but are gobsmacked at the high settlement amount. All we want to do is to get rid of this debt but without being ripped off!
Do you think the settlement figure is correct and fair?
