welcome finanace help!

[purplegrape]

Hello, I'm just looking for some help with Welcome finance. We have paid off a large portion of the interest and the original debt that we unwisely took out on our house. We have not been able to pay anything towards the debt for a couple of years, and all interest has been frozen. However we still have about 10k left as a charge on the house. We would now like to sell, and wondered if anyone has had any success in offering a final settlement? We sent off a template letter offering 3k, that family will lend us to settle the debt, but they asked for a mortgage statement before they can process. I have not sent this off yet as I do not see why they need this.
I have lots of issues with welcome, as they went back on an agreement for reduced payments while I was on maternity leave, which at the time sent my credit rating through the floor, and piled on the charges. Also, for the first 3 years I was paying 4 days late every month as they agreed my payment date but didn't tell me this was 4 days after the payment was due each month, which meant compound interest was higher than It should have been. I never picked up on this, because you need a degree to work out the compound interest on the account, and I only found out in passing one day.
Now, I just want to sell my house, but cant afford to pay them the outstanding debt in full, and really need them to accept an offer. I know this sounds like trying to get out of a debt, but I have paid off the original loan, and almost the amount we agreed in interest, and I have been trapped for years now not being able to sell due to negative equity.
please could someone advise what the best course of action is. I really would appreciate any help you could give.

[Kati]

Re: welcome finanace help!

tagging [MENTION=48934]Debt Camel[/MENTION]

[Debt Camel]

Re: welcome finanace help!

they asked for a mortgage statement before they can process. I have not sent this off yet as I do not see why they need this.

you aren't in a strong position here. They don't have to accept a reduced settlement. If you don't supply what they have asked for, they probably won't even consider it. The fact that you can't afford to sell the house and repay the mortgage and the secured loan may encourage them to accept a settlement.

[Diana M]

Re: welcome finanace help!

How much was the loan when you took it out, and what year was that?

Do you know whether it was a Unregulated loan or a Regulated loan (where the Consumer Credit Act is relevant). You need to establish whether it should have been Regulated if it wasn't as this may have some influence on the amount of interest charged.

You say "we" so is this a joint loan?

If you sold the property what would be the amount of any shortfall or is there not enough equity in the house to redeem any of the £10k balance?

Are they aware of your intention to sell (I wouldn't advise them of that yet if they're not)? And if so have they said they would attempt to block the sale?

Was there any PPI on the loan which may have been front loaded?

How did you take out the loan - was it through a broker or through one of Welcome's high street shops?

If it was a joint loan were you both fully employed at the time?

Sorry for all the questions but some Welcome loans have 'legal issues' so it's important to establish the facts before making any suggestion on how to manage the situation.

Di

[Ruby]

Re: welcome finanace help!

Have you asked to see your Credit Agreement? (DSAR). I would be most surprised if they still have the agreement. However if they do, it probably has 'legal issues' which gives you leverage for negotiating a reduced settlement figure. They were willing to accept a 50% settlement for my regulated secured loan. I would not give them a copy of your mortgage statement in the meantime.

[Diana M]

Re: welcome finanace help!

Have you asked to see your Credit Agreement? (DSAR). I would be most surprised if they still have the agreement. However if they do, it probably has 'legal issues' which gives you leverage for negotiating a reduced settlement figure.

I agree.

Di