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WFSL ongoing dispute, advice needed.
Hi,
My husband and I are having trouble with WFSL (Welcome Finance). We got a car from them in 2007 but in 2008 my husband lost his job and had to take a lower paid position. We contacted WFSL and went to see them in their Kilmarnock office. We asked them if we could cancel the insurance and lengthen the term from 5 years to 7. We then signed a new direct debit and paid a £115 administration charge. Last year I was looking over the statements my husband had been getting and I noticed that things didn't add up so I did some research and found out that WFSL had created a brand new loan. Instead of adjusting the original loan they had paid off the old one and without my husband's signature, knowledge or consent created a new loan, which included the full insurance fees, which they had cancelled, and and a big lump of more interest and they had extended it to 120 months. I contacted them who were adamant we had agreed to this, I demanded a copy of the loan agreement with my husband's signature on, something they cannot produce and we have been in dispute ever since. I recently told them that as they had been paid over £9500, which was the original amount for the car, including interest but minus insurance I wasn't prepared to give them any more. They say that we owe them £4500 still, which includes insurance and we must pay this and then claim the insurance back off the Financial Services Compensation Scheme. I believe because the new agreement wasn't signed it is invalid and as the original loan was paid off it doesn't exist either, so we don't need to pay any more to them.
WFSL have now passed the debt on to Atlas Collections and Experto Credite who have both sent it back to WFSL after our explanation. They have now sent it to a company called Sigma Red, we have explained to them the history and are awaiting their reply.
My question is, how do I put an end to this? What's stopping WFSL passing this round to more and more debt collection agencies even if Sigma Red send it back to them?
Many thanks for all advice and comments.
My husband and I are having trouble with WFSL (Welcome Finance). We got a car from them in 2007 but in 2008 my husband lost his job and had to take a lower paid position. We contacted WFSL and went to see them in their Kilmarnock office. We asked them if we could cancel the insurance and lengthen the term from 5 years to 7. We then signed a new direct debit and paid a £115 administration charge. Last year I was looking over the statements my husband had been getting and I noticed that things didn't add up so I did some research and found out that WFSL had created a brand new loan. Instead of adjusting the original loan they had paid off the old one and without my husband's signature, knowledge or consent created a new loan, which included the full insurance fees, which they had cancelled, and and a big lump of more interest and they had extended it to 120 months. I contacted them who were adamant we had agreed to this, I demanded a copy of the loan agreement with my husband's signature on, something they cannot produce and we have been in dispute ever since. I recently told them that as they had been paid over £9500, which was the original amount for the car, including interest but minus insurance I wasn't prepared to give them any more. They say that we owe them £4500 still, which includes insurance and we must pay this and then claim the insurance back off the Financial Services Compensation Scheme. I believe because the new agreement wasn't signed it is invalid and as the original loan was paid off it doesn't exist either, so we don't need to pay any more to them.
WFSL have now passed the debt on to Atlas Collections and Experto Credite who have both sent it back to WFSL after our explanation. They have now sent it to a company called Sigma Red, we have explained to them the history and are awaiting their reply.
My question is, how do I put an end to this? What's stopping WFSL passing this round to more and more debt collection agencies even if Sigma Red send it back to them?
Many thanks for all advice and comments.
