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firstplus loan sold to elderbridge

pitboss1974 asked:

Hi everyone, I have a firstplus loan that has been sold to elderbridge I believe the entire loan book has been sold,my question if anyone can help is,are elderbridge subject to the same criteria for providing proof of correct assignment as a DCA would be for example,any help would be most welcome

ceylon replied:

yes but they will say they dont have to

Tiggy replied:

Have you ever checked the loan for PPI, they were notorious for adding it on. Plus was this a secured loan ??

pitboss1974 replied:

Hi tiggy, I did get about £60 ppi refunded just after the whole ppi scam came to light,I only had the ppi for a few months hence the amount refunded,and yes it is a secured loan so I need to tread carefully with disputing ownership

Tiggy replied:

You definitely need to be careful, as they already have a charge on your property they may not use the County Court Judgment route to make a claim but may use the possession order route.

Obviously, you can challenge this on the assignment / agreement route, but obviously the consequences may be more severe as it’s a secured loan than for unsecured.

When did you default ?

pitboss1974 replied:

Sorry I’ve not been very clear, everything’s up to date no arrears im kind of looking to the future don’t know much about the outfit thats allegedly bought the loan so unsure whether they will Jack up the interest rate,in the future

Tiggy replied:

Was the original loan on variable interest?

pitboss1974 replied:

Yes it moved with the BoE rate but it has anever dropped as low as mortgage interest so must have a large “collar” im digging out the paperwork to get to the small print

Tiggy replied:

Basically, on assignment the purchaser replaces the original creditor in the contract, so yes, as it’s a variable rate loan they could increase the rate in the same manner as First Plus.

pitboss1974 replied:

Thanks tiggy

bozzoid replied:

Hi everyone. I have just found this site and this topic. I took out a £57k secured loan, repayable over 20 years, with First Plus in 2005 which I have been repaying at around £570-£580 a month ever since. I received notification through the post that Elderbridge would be taking my account over from First Plus, and that I did not need to do or sign anything or respond in any way. I have just asked Elderbridge for a final settlement figure and they are saying £45k. Of course I realise that the interest over such a long repayment period will be very high. I am also aware that products such as this are usually ‘front loaded’. However, I have to admit to being quite shocked when the guy gave me the £45k figure over the phone. I had thought it would be around £10k less and that, having made 60% of the 20 years’ repayments, I would have repaid more than 21% of the capital. Does anyone else think this seems a bit steep? Also, as the original contract was with First Plus and I was not consulted or asked to sign any contract with Elderbridge, am I not in a position to simply refuse to acknowledge any alledged debt to them and refuse to pay them?

flyingfish replied:

Probably the original agreement contained a term of some sort allowing it to be assigned or sold. You may think it worth checking if you want to be sure in yourself.

That settlement figure seems high on the face of it. You could probably find an Excel spreadsheet or online calculator that could model it for you, but to be exact you’d need to know the applicable interest rate at all times, and the exact payments you were making.

Alternatively do they not send regular statements? If not then request one, and do a sanity check, in particular whether they are levying any charges that you weren’t expecting. Finally does that settlement figure include an early settlement penalty?

Lastly it must be quite a high interest rate, $£57K over 20 years £550 per month implies around 10%. Would it be worth shopping around to see if you can get a better deal?

Tiggy replied:

FirstPlus were notorious for adding on extortionate PPI that only ever covered you for 6 years of the loan, plus you paid more in PPI premiums/ interest than could ever be claimed back.

Have you ever looked into whether PPI was added on and into reclaiming it.

bozzoid replied:

flyingfish, thank you for the sound advice.