Can I make a claim against FirstPlus?

In a previous article about FirstPlus Second Charge Mortgages, we discussed the work we have done to assist those that have, or previously had, mortgages with FirstPlus. The mortgages with FirstPlus Financial Group, which is a subsidiary of Barclays, have been widely criticised in the media, for example in the Financial Times and Telegraph. Whilst FirstPlus mortgages are now managed on a day-to-day basis by Elderbridge, FirstPlus remains a subsidiary of Barclays.

What are the issues with the FirstPlus loans?

From speaking with clients, we understand that the main reason people took out loans with FirstPlus was to consolidate debts, or to carry out home improvements. FirstPlus also advertised the loans with TV-adverts featuring Carol Vorderman. The adverts stated that the loans allowed numerous monthly payments to be consolidated into a more manageable monthly repayment, and that the loan would be provided at a “reasonable rate”.

What was not necessarily made clear when entering into the mortgages, was that borrowers could in fact end up paying more than expected. The terms of the mortgages were often as high as 25 or 30 years, meaning that interest would need to be paid over a long period of time.

In addition to the additional sums being paid due to the length of the contracts, the interest rates applied to the loans did not increase or decrease in line with base rates as anticipated. For example, when the base rate dropped dramatically in September 2009, many FirstPlus customers did not see this drop reflected in the interest rate applied to their account, and many actually saw an increase.

How can Ellis Jones help FirstPlus customers?

Our expert solicitors at Ellis Jones have acted for a number of FirstPlus customers over the last several years, and we continue to act for customers that have been adversely affected by the interest rates applied to their accounts.

We are therefore well-placed to advise on options for the recovery of monies paid pursuant to a FirstPlus mortgage or to otherwise seek a reduction of the balance of an ongoing mortgage. Our Banking and Finance Litigation team have recovered more than £80 million for clients, in relation to a range of different matters.

If you think you may have been affected by this issue, we would be happy to have a no obligation chat to discuss your options. If you would like to discuss a potential claim against FirstPlus, please contact Leah Sharman (Leah.Sharman@ellisjones.co.uk) or Henrietta Frew (Henrietta.Frew@ellisjones.co.uk) in our Banking and Finance Litigation team or call us on 01202 525333.