please help!

[mumonamission]

hello,
i would be really grateful of any advice or knowledge on my situation with Welcome finance.
in march 2007 i purchased a car through a car company financed by welcome finance.
i was paying the monthly repayments fine untill i couldn't work for myself anymore due to illness during a rough pregnancy, i informed welcome of this and they offered to take the car away. i accepted this as they said i could reschedule what was left to pay after the car was sold on, i am still paying for this and have a year left on the outstanding balance, is there anyway i can stop paying this, would i be to claim for ppi ? thanks in advance for any replies.

[bluebottle]

Re: please help!

Hello Mum On A Mission and welcome to Legal Beagles.

Firstly, have Welcome Finance told you how much the car sold for and how much this has reduced your repayments by? As such they have a duty to realise the best price they can obtain on any repossessed goods and apply the proceeds to your account. You would then be liable for the balance that remained after application of the proceeds of the sale.

Secondly, if Welcome Finance have kept schtum about what the car realised, it would be a good idea to write a letter to them and ask for an up to date Statement of Account so that you can see what balance is outstanding.

Thirdly, in order to make a claim on a PPI policy, you need to find out if your agreement included PPI. If it does, you should be able to claim. Please be aware, however, that you need to check the terms of the policy to see if you can claim. If you can't and this wasn't disclosed at the time the agreement was set up, it may be that the PPI was missold. There has been a lot of publicity about misselling of PPI policies.

Fourth, if you are struggling to meet the repayments Welcome Finance are asking you to pay, you should make Welcome aware of this ask them if you can pay what you can afford. Any responsible and ethical lender should treat such cases sympathetically.

At the present time, that is the best advice I can give you. If you have any problems with Welcome Finance, come back onto this thread and we will see how we can help you.

Bluebottle

[mumonamission]

Re: please help!

Hi Bluebottle,

Thanks so much for your reply and advice, I will certainly do as you have suggested.

I will follow up on this thread to let you know how things go

Thanks again :tinysmile_grin_t:

[berniel]

Re: please help!

Hello

Just to add
If you had paid 50% of the total sale price then under the Consumer credit act, no further payments are due.

Bernie

[mumonamission]

Re: please help!

Hello Bernie,

This sounds very interesting......if I had paid 50% of the total sale price that I purchased the car for? Before it was repossessed or now? i have definitely paid more than 50% of the sale price i paid in 2007 by now. and still have a year left of 80 pound a month.

many thanks

[berniel]

Re: please help!

Hello Bernie,

This sounds very interesting......if I had paid 50% of the total sale price that I purchased the car for? Before it was repossessed or now? i have definitely paid more than 50% of the sale price i paid in 2007 by now. and still have a year left of 80 pound a month.

many thanks

Yes this is the term

100 Liability of debtor on termination of hire-purchase etc agreement

(1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated
under section 99 the debtor shall be liable, unless the agreement provides for a smaller
payment, or does not provide for any payment, to pay to the creditor the amount (if any) by
which one-half of the total price exceeds the aggregate of the sums paid and the sums due

in respect of the total price immediately before the termination

It may be that you were unaware of your rights under section 99.
This does not absolve them, they should have made yhou aware when they reposessed the vehicle.
I think any court would consider it unfair for them not to do so.
Bernie

[mumonamission]

Re: please help!

ok thanks, so what do you suggest is my first move?

[berniel]

Re: please help!

ok thanks, so what do you suggest is my first move?

Well

i would suggest you do a few sums.
Add up all the payments made befor the agrement was terminated,(and since) find out how much the total credit on the agrement was.
Ensure that we are talking about a HP or conditional loan agreement.

Then advise welcome of the results and the requirements of the act and see what they have to say.

It you Google voluntarry returns under secion 99 you will find more info i think there is some on the National debtline website and on MSE.
You must emphasise that you terminated the agreement by asking them to take the car back.

If they terminated it you cannot use section 99 100

Bernie

[mumonamission]

Re: please help!

excellent, i will get to work on this and post any follow up

thanks so much

[mumonamission]

Re: please help!

Hi Bernie,

Ive done some research today, the original credit agreement for the HP of the vehicle was£6225.00 in 2007. I did voluntary hand the car back to them with 30 days notice. I was never informed of how much the car actually sold for at auction, but was given a balance outstanding for which they say i am liable for, the amount of £1845.00. This is the amount i have been chipping away at until now without question, so this figure is a lot lower now at approx £800.
have i got a strong case under section 99 do you think? and if i have how would i go about it?
thanks for taking the time to replyand give me you advice, its much appreciated

[berniel]

Re: please help!

Hi Bernie,

Ive done some research today, the original credit agreement for the HP of the vehicle was£6225.00 in 2007. I did voluntary hand the car back to them with 30 days notice. I was never informed of how much the car actually sold for at auction, but was given a balance outstanding for which they say i am liable for, the amount of £1845.00. This is the amount i have been chipping away at until now without question, so this figure is a lot lower now at approx £800.
have i got a strong case under section 99 do you think? and if i have how would i go about it?
thanks for taking the time to replyand give me you advice, its much appreciated

Hello
You need to know exactly how much you had paid when you termnated the agreement.

Do you have the agreement details giving the repayment amounts and the number of payment made before termination, multiply the two togertther and add the amount of deposit paid.

If the sum is more than half of £6225, you can contend that you returned the car under section 99.

In any case send a request under section 97 of the consumer credit act for details of your endebtedness under the agreement, they should enclose details of how they arive at the figure. Remind them that the vehicle was returned under section 99 of the act and the figure should represent this.
They should respond within 14 days

They will of course deny it.

97 Duty to give information

(1) The creditor under a regulated consumer credit agreement, within the prescribed
period after he has received a request in writing to that effect from the debtor, shall give the
debtor a statement in the prescribed form indicating, according to the information to which it
is practicable for him to refer, the amount of the payment required to discharge the debtor’s
indebtedness under the agreement, together with the prescribed particulars showing how
the amount is arrived at.

Bernie

[mumonamission]

Re: please help!

thanks so much i will give this a go