It is quite unusual to have a variable secured loan usually they are fixed at somewhere about 2-4% above the lendng rate SVR, Although lenders can levy any interest rate , at the outset depending on an applicants credit history, for instance both NR and the Blemain group use a credit score system which is colour coded put the score in for one applicant and a blue colour will come up blue would equal say 12.9% put another applicant in with a poor record and red would come up red would equal 25.9%. These would be fixed rates regardless of the movement in the bank rate. The fact that these are variable would suggest that they would work the same way as a tracker mortgage but as we have seen recently the bank rate has come down and lenders are not passing on the savings.
There is a movement at the moment challenging contracts on loans and credit cards that they meet the contractual law that binds them notably the Consumer Credit Act 1974. Where contracts say were done over the phone or online and no physical signature was obtained then that contract is deemed unenforceable OR if not all relevant paperwork was supplied and signed I.E. an application for a credit card pops through the post you apply and sign the application and the lender issues the credit card without the contract [the application form will usually only pertain to the conditions of the application and not the actual contract] then that contract is unenforceable. What does that mean????
In fact it means you don't have to pay it, YES YOU HEARD ME RIGHT!! Regardless of how much you owe if the lender cannot provide an original signed contract that sets out the conditions of the aforesaid act and a borrower defaults a court will not recognise the contract and the borrower doesn't have to pay!!
Your contracts are still bound by this act, I assume Firstplus sent you a contract that was signed by you setting out the conditions if so you would have no redress for that but you have to question why a variable rate contract rises when interest rates come down. Apart from anything else with the government out to help people through this crunch/recession/depression one would assume that all lenders would be seen to be acting fairly remember Barclays products are still regulated by the FSA and their codes and also the Banking code, having an unregulated loan doesn't mean there is no legislation to cover it. It just typifies the mess the whole financial system is in where you have regulated and unregulated loans [remember this only pertains to the size of the loan] and regulated and unregulated mortgages; residential v buy to let[commercial] sometimes I think this is done to confuse the public to seeking so called EXPERT advice.
Regarding the writing down of Barclaycard accounts [it does mean writing them off] I assume that this was done on defaulted cases but it would be interesting to know how many people have challenged them regarding their legality [as above] and have had their debt written off even though they are not in default!!
I realise that all this legislation and terminology is confusing and baffling, nothing is easy where the FSA is concerned, but you have to persevere and get to grips with it, If you are going to try to band together i would suggest getting on as many sites as you can, I don't think Monetsupermarket will let me put links in here but try motley fool on a search and click on the uk link. very good site with lots of good people knowledgeable and very proactive. all the best Mike