Firstplus pre-2005 loan

[Clara]

I think I had previously mentioned on another thread that I was pursuing some PPI I had on a Firstplus secured loan started in 2003.

The loan was purchased through a broker called 21st Direct who ceased trading in 2009. The single premium PPI was £7700 and loaded onto the loan at the start, we subsequently cleared the loan in 2004. We did not want to take the PPI, we made that clear to the broker but we were informed that Firstplus would not approve a secured loan without this form of protection in place. Having never taken a secured loan before we accepted this and continued with the unwanted PPI.

I recently submitted the FOS questionnaire to Firstplus, aware of the fact we'd used a brokerand we were unlikely to get any joy from them. As expected I received a letter this morning from them stating they were "unable to review the sale of PPI" as the loan was sold to us by a broker and because they have ceased trading they cannot forward the details on. They point out we have no redress through the FSCS and that this is their "final response to our complaint". They do state that I do have the right to refer this to the ombudsman.

Having read other posts etc with this sort of situation I am feeling a bit defeated but could really use some advice, is it worth referring this to the ombudsman or am I pretty much at the end of the path?

Clara

[di30]

Re: Firstplus pre-2005 loan

Hi there

Did they mention anything about the FOS on the letter you received?

You can of course ask FP who the Insurer/Underwriter was, as this may be the avenue the FOS will suggest to you, the fact that the broker are no longer trading, the fos will probably come back to say as FP did not set this up for you they will not be able to take this on, but do ring them and check first but also do contact FP for the Insurer details, (you have a right to know who these were), then let us know, as we can help. x

[Clara]

Re: Firstplus pre-2005 loan

Yes they mentioned that I could refer it via the FOS.

None of the paperwork I have mentions who the underwriter was, so I will request that information from Firstplus.

Clara

[di30]

Re: Firstplus pre-2005 loan

Okey dokey, refer it to the FOS and meanwhile as you said contact them to ask for the underwriter/insurer of the policy as you have every right to know who these were x

[Clara]

Re: Firstplus pre-2005 loan

I'm thinking of maybe writing to FP again before trying the ombudsman.

Firstly to request the insurance provider's details and policy document and secondly to point out to them that despite the sale of the loan being through a broker the insurance was their product and we did have a telephone conversation when agreeing the loan directly with FP where the optional nature of the insurance could have been made clear but wasn't.

I know it's unlikely to be successful but their ability to deny responsibility is frustrating! Or am I just being daft and I should just send the lot to the ombudsman?


Clara

[di30]

Re: Firstplus pre-2005 loan

Yes i would do the same as you, you have it covered....and know what your doing :tinysmile_twink_t2:

Also include the chief executive officer (CEO) in as well, do you have the email addy for the CEO?

Well if you dont try you will never know, so definately go for it, stand your ground x

[Clara]

Re: Firstplus pre-2005 loan

Just thought I'd update to say that after writing the letter to FP asking for the underwriter's details and complaining as mentioned above, I received a letter from them this morning stating that they had upheld my complaint and would be compensating us the amount of PPI plus 8% interest.

Very pleased with this result, as you can imagine, thanks for the help

Just waiting on Lloyds now..

[di30]

Re: Firstplus pre-2005 loan

Fantastic!! Well done and Congrats, was the success with FP or underwriter?

[Clara]

Re: Firstplus pre-2005 loan

It was with First Plus, I wrote and said something along the lines of " I am not happy with your decision as despite it being through a broker who is now no longer in business, you did communicate with me prior to acceptance and you should have made it clear at that point that the PPI was optional. The product was a First Plus product so there must be some responsibility. As I will be following this up with the financial ombudsman it would be useful for me to know who the underwriters for the insurance were, would you please let me know this information as soon as possible."
Their reply was " your complaint has been upheld....". Very surprised.