First Plus Return of Insurance Premiums

[e.h]

Hi there. Thought I would post a forum expert's thoughts on the First Plus Payment Protection Insurance Premiums.

"Having read through the terms and conditions of the cash back clause it seems you will be entitled to a maximum of £[however much your insurance premium is] minus insurance premium tax as long as you meet all the clause conditions. There is no mention in your conditions of only paying 50% back and I assume it is the same clause for the previous poster that started this discussion.

Having spoken to my insurance advisors, it seems that this is in fact, 'a pretty fair deal' as it also includes life cover and is for the term of the loan.Their only detrimental comments are regarding the method of sale whereas the premium is a single front loaded payment.

You need to ensure that you mark your colander to make sure you make the claim within 30 days of the end of your loan agreement and make sure you send the request by registered mail.

Remember; if you settle the loan early, or make a claim against the insurance, or fail to claim the refund within 30 days from the end of your loan agreement, or fall in arrears of three months with your loan repayments you will not be entitles to the refund of premiums."

Hope this helps all those who have a First Plus secured loan.

Regards

Liz

[mum of 4]

Hi,

Just to point out that the cover is for the first 5 years of the loan only NOT the life of the loan, once the 5 years is up and you have claimed your cashback it is perhaps advisable to use the money to buy a policy with a different insurance company to cover your payments if you so wish.

Another point, Insurance Premuim Tax is only included in loans taken out a couple of years ago where your insurer is Cassidy Davis, newer loans in last year or two will not have to pay this due to the insurance being with Barclays Insurance in Dublin, (as the insurance is not UK then no IPT to pay!)

One of the main things to note is that you will NOT get any cashback if you are 3 months in arrears, if struggling to make a full payment then always make a partial one as this can protect the cashback element of the loan!

One other thing, if you buy joint cover the second named customer will only be covered if they die, it only covers the first named person for life, accident, sickness and involuntary unemployment - read the small print before you buy.

You also have 30 days from start of loan to cancel the PPI if you are not happy but this needs to be in writing signed by all parties to insurance and I would advise sending the letter recorded delivery as I would also do when you write to claim the cashback.

[Adam Davies]

Hi and welcome
Great info,thanks for that.
Are you in the insurance industry ?

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[mum of 4]

No sorry not an insurance expert but have some experience of the terms of the Firstplus cashback product.

[caraf]

Hi. I have a First Plus loan with PPI, if I dont claim and get my cashback in 3.5 years time could I make a F&F settlement with it

[mum of 4]

Hi,

I'm not sure whether you could do this as I suppose it would depend upon how much cashback you would get and how much you owe. I would speak to your IP about it.

Are you with BID or Cassidy Davis? If you fulfil the t & c's you will get 100% back with BID & 95% approx with CD (the remainder going as IPT)

You should therefore be able to work out how much you will get when the first 60 months of the loan are up. Don't forget thought you will NOT be covered after this.

[caraf]

I dont know what you mean ? I am not with either of those companies!

[mum of 4]

Hi Caraf,

If you have a secured loan with FP and have taken out the PPI you will be insured by either BID or CD, call FP customer service dept if unsure.(029 2040 6356)

Newer loans will have the insurance with BID and older loans will be covered by CD.

One other thing to be aware of with FP PPI is that if you cannot make the payments and make a claim it will only cover the original agreed payment, most FP customers have had at least 3 increases in payment this year due to interest rises but any claim on the PPI will only pay the origianlly agreed monthly payment, any shortfall in that monthly payment paid by the insurer will need to be paid by the customer.

[MelanieGiles]

You would not be able to use this money to effect a full and final settlement, given that it would fall under the windfall provisions of your IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp