*Advice Needed* FIRSTPLUS Secured Loan Early Settlement Charges

[elmwilliams]

Hi All,

 

This is my first post, so thought I'd say a hello and big thank you to everyone that contributes to the site.

 

Today I've been reading through posts from people who are trying to contest ERC's, as I've just sold my house and so cleared by FirstPlus loan which was secured against it. Now I knew that settling this loan always going to be a difficult pill to swallow - handing over all that money, but I took out the loan when I was desperate.

 

Anyway, I'm now wondering whether there is any case to be brought to claim that their fees are exorbitant???

 

The details of my loan are as follows:

 

Loan Amount - £30,000

Term - 25 years / 300 months

APR - 8.9%

PPI - None

Monthly Payment - £243.00

Total Monthly Payments Made - £5,346

Estimated Interest Accrued - £4,895 (this is my guess-timate)

Start Date - 01/02/2005

Account Settled - 17/11/2006

Settlement Amount - £30,433.23

 

As set out in their settlement letter:

Total amount payable under the Agreement £48373.48

Less our rebate on early settlement -£18090.25

Plus administration charge £150

Total amount payable by you to settle £30433.23

 

So, does anyone have any thoughts or wisdom they can offer me? Am I just stupid for having taken out that loan, or can I recoup any of my losses? Have they been unfair...?

 

Any advice gratefully received!

[gizmo111]

Hi and welcome

 

I am not sure on this one but I'll point it the direction of someone who will most likely know.

[elmwilliams]

Hi,

 

Thanks for your reply. Does anyone else have any thought's on this scenario?

 

Cheers,

 

Emma

[zootscoot]

Hi Emma,

 

You can claim the admin charge.

 

Do you know how they calculated the rebate?

[elmwilliams]

Hi Zootscoot,

 

I don't know the breakdown yet. I've sent them my new address details and included a request for a breakdown, keeping the request very simple and sweet at the moment - maybe they will not know what I want it for yet and perhaps give it to me. However, I am poised to write the next request far more sternly. I was reading through their loan literature and it included a table showing the early repayment calculations; I'm sure it was about £1k per month for a loan of my size and repayment this early. That is sickening, however until I know what this is for I cannot know whether it is reasonable.

 

I will check this table again, wait for their reply and come back to you. Thanks...

 

Emma

[Poppy07]

Hi Emma, did you get a result with this? Very interested as I am in the same position and would love to know how to claim back the money!!!

Thanks!

[ncf355]

As Am/Would I!

 

[James31]

Me too - borrowed £50,000 in May 2004. Have repaid approx 15k to date, requested settlement figure last month (2.5 years after taking out the loan) and the amount to settle is £50.5k!!!

 

I am remortgaging and settling, but having paid back 15k to date, it's bloody annoying!

 

James

[Debaz]

Hi Emma have you heard anything yet I too am very interested in the out come we are just putting our house on the market and will have to clear a firstplus loan after only a few years,

Debbie

[Surfer01]

Did any one take this up with Firstplus as ther are now numerous other people with the same problem and they are intent on challenging Firstplus in court. I am one of them.

[angling_man]

Hi all,

 

Was there any further info on this matter, either here or posted elsewhere. I too am looking to settle.

 

Thanks,

AM