Welcome Finance PPI

[nazza]

Sorry if i am duplicating a thread. I have looked and cant find an answer.

My husband had a couple of loans with Welcome around 2004/2009, one of which he defaulted on. It is now definitely 'statue barred' and no longer shows up on his credit file. Welcome had also sold his debt on to a debt recovering company.

When the Claim Guys contacted him to try and claim back his missold PPI for him in his wisdom he agreed. Off all the different loans he had Welcome said he was in entitled to £5,150 back. But because he had defaulted they were taking £1,300 for PPI he never paid and £1,500 towards his £4,400 outstanding debt and some other amount for something else, so offering him £1,300. Can they do this when the debt is 'statue barred' and they have sold the debt on??

So the problem is the Claim Guys want 30% commission on the full amount approx £1,600 thus leaving us out of pocket £300!!

I have emailed Welcome Finance to explain and ask if they would reduce their fees, but im not holding my breath!!

Any advice much appreciated.

[Kati]

Re: Welcome Finance PPI

Another Claims Guys one for you [MENTION=332]EXC[/MENTION] xx

[EXC]

Re: Welcome Finance PPI

On the first issue of WF setting off the PPI compensation to a debt that they sold, it's a bit of a grey area. WF may have an agreement in place with the debt purchaser that allows them to set it off. I'll ask [MENTION=189]Turboman[/MENTION] for his thoughts.

That the debt might be statute barred only means that you can claim SB status as a defence to them litigating a claim for it in legal proceedings.

On the Claims Guys if you have yet to accept the WF settlement you could refuse to do so (and thus avoid the fess) as it wouldn't be in your interest to do so.

You could complain to Claims Guys quoting the guidance issued to CMCs charging fees in circumstances where they are more than the cash in hand benefit - see page 8 https://www.gov.uk/government/upload...-companies.pdf

[nazza]

Re: Welcome Finance PPI

Thanks for the response.
Unfortunately husband excepted the welcome finance offer because he thought the claim guys commission had already been taken off! He is definitely barred from any paper work in the future. I would be interested to see if welcome have got an agreement in place with debt owner to off set it?

Thanks again

[EXC]

Re: Welcome Finance PPI

Did the offer from WF come direct to you or did the Claims Guys notify you?

[nazza]

Re: Welcome Finance PPI

Direct from welcome

[EXC]

Re: Welcome Finance PPI

Did the Claims Guys advise you at any point that their fees would exceed what you got in compensation? If not you should complain to them on that basis.

[nazza]

Re: Welcome Finance PPI

No the claim guys told us we were getting the full amount. They said nothing about welcome finance taking any money off. But they wanted their commission before they would send us the compensation. Then welcome wrote to us with the same figure but with 2 options- first we would get £1,300 and some money taken off to pay debt, then second option no money to us and it all taken off debt. Which I thought was strange??

[EXC]

Re: Welcome Finance PPI

No the claim guys told us we were getting the full amount. They said nothing about welcome finance taking any money off. But they wanted their commission before they would send us the compensation. Then welcome wrote to us with the same figure but with 2 options- first we would get £1,300 and some money taken off to pay debt, then second option no money to us and it all taken off debt. Which I thought was strange??

Did the Claims Guys tell you this in writing? It would be helpful if you could post up both letters or at least the relevant text from them.

[nazza]

Re: Welcome Finance PPI

No just welcome finance. Will post up letter when I get home. Thanks for all your help.

[nazza]

Re: Welcome Finance PPI

Sorry it has taken me so long to post. I says the debt has been sold...so are they aloud to take money off?
I have emailed claim guys appealing to their better nature to reduce fees to £1,000 BIG FAT NO! just asked them again to take all my commission of £1,300 as full fees......we shall see! so frustrating!

[Kati]

Re: Welcome Finance PPI

Tagging [MENTION=332]EXC[/MENTION] [MENTION=189]Turboman[/MENTION] xx

[EXC]

Re: Welcome Finance PPI

Sorry it has taken me so long to post. I says the debt has been sold...so are they aloud to take money off?
I have emailed claim guys appealing to their better nature to reduce fees to £1,000 BIG FAT NO! just asked them again to take all my commission of £1,300 as full fees......we shall see! so frustrating!

As I said the issue of WF off setting the compensation against a debt that they sold is a grey area. I would call the Financial Ombudsman and ask what their approach is to the issue. Say that you are considering making a complaint to WF but wouldlike their view on where they think you stand. They're usually quite helpful - contact details here http://www.financial-ombudsman.org.u...act/index.html

With the Claims Guys I would mke a formal complaint to them saying that you were not made sufficiently aware that signing up with them could (and indeed did) result in you being worse off then you were.

[nazza]

Re: Welcome Finance PPI

I will do that. Many thanks

[EXC]

Re: Welcome Finance PPI

Just one other thing, clause 4e of their terms state that they can charge you if you do not accept a ''reasonable'' offer of compensation http://www.theclaimsguys.co.uk/app/u...12/TCG_TOE.pdf

In your complaint to the Claims Guys I think that if you say ypu are rejecting the offer on the basis that it isn't reasonable (ie it's going to cost you £1300) you shouldn't be charged.