Welcome Finance

[Ellis27]

Hi everyone, I hope somebody can give me some advice re Welcome finance.
My daughter took out a loan with them in 2004 for £3000 with fees and PPI this went up to £5000 she added another loan to this for £2000 at a later date.
The upshot is she only ever received £5000 into her bank. She has now paid back £8500 but because of re-writes on this loan welcome still want £14,000 to clear debt.
This has been with the Ombudsman since 2009 and she has just received their decision. Basically they have asked Welcome to repay PPI. Welcome said they will do this, this amounts to £1374 plus 8% interest. Welcome say they will set up a new loan of £10,000!
wHAT SHOULD BE OUR NEXT MOVE, tHE oMBUDSMAN DOES NOT SEEN TO HAVE LOOKED AT ANYTHING EXCEPT ppi EVEN THOUGH WE MADE IT CLEAR WE WERE UNHAPPY tHAT WELCOME SEEMED TO REWRITE THE LOAN EVERY TIME MY DAUGHTER FOUND IT DIFFICULT TO PAY.
aNY HELP MUCH APPRECIATE (SORRY FOR CAPS).

[enaid]

Re: Welcome Finance

We will need a lot more info and to see the contracts (personal details removed) before I think you will receive much further help on this.
I think you are saying your daughter borrowed a total of £5,000 in total £3,000 for first loan and a top up of £2,000 at a later date, has paid back up to now £8,500 and yet the amount to clear the balance is still £14,000 is that correct?

[Caspar]

Re: Welcome Finance

I'm with Enaid here. Without more information, and as she said copies of agreements with personal details removed, it's impossible to say much more. Each agreement should have had the total amount repayable, so nothing should be taking you by surprise.

[Ellis27]

Re: Welcome Finance

Enaid that is correct, because of all the re-writes on these account it is very hard to understand I will see if we can get agreements posted up for you to look at.
Thanks

By the way has anybody had any success reclaiming charges from welcome?

[Ellis27]

Re: Welcome Finance

Hi
I am still waiting for my daughter to bring agreements (she doesn't live with me) I don't think I explained myself very clearly in my first post.

My daughter took out a secured loan with welcome finance for £3000 they added PPI £1374 and a mortgage indemnity fee, the loan was for 36 months. After a while she asked for a furher advance of £2000 they gave her this and added another Mortgage Indemnity fee.

My daughter got into difficulty paying the loan which was now around £7800
although she has only ever received £5000 cash into her bank account.

This went to the Ombudsman in 2009 she has just received his decision re PPI
he said Welcome should recalculate the loan to put her in a position she would be in if PPI had never been added to the loan.

Welcome have said they will do this and have stated the balance of the loan is £14,000 they will take off PPI plus 8% and rewrite the loan for £10,000.
The Ombudsman seems to think this is fine although we have had no explanation of how the balance is now £14,000 and considering my daughter has already paid £8500 it does not seem fair.

The ombudsman says his decision is final but doesn't seem to get that he is allowing Welcome to present any figures they want. I am happy with the Ombudsman decision but not happy because Welcome are not making it clear how she stills owes so much.

We have asked Welcome for a full breakdown of everthing but they say we will have to send £10 for a SAR. we did this in the beginning and the statements were so messed up it was untrue.

I understand that you need to see the agreements but can anybody advise how we go further with the PPI issue first please

There is so much wrong with this account I fear I am going to need lots of help. There have been 4 agreements in all Welcome do not have the 4th one they have lost it, they sent a reconstructed one in my daughters married name although the loan was taken out when she was single!

They have only entered one charge at the Land Registry and that was for the first loan, which is effectively settled, the Land registry say they should have entered each new loan any views on this please.

Is there an interest calculator where I could check welcome are paying the correct amount back for PPI.
Thanks in advance

[Sparkie1723]

Re: Welcome Finance

THe first thing IMO is write to Welcome and say the FOS I have been told have given previous decisions on the repayment of PPI, what interest can be charged by a borrower ............you can charge them interest on the intial amount at contract rate compouned daily and then ...........when you have worked that amount out interst on that amount at County Court rate of 8%.

I am sure that someone more exerienced on PPI claims than me will be along shortly to assist you more on how to go about it

Regards

Sparkie

I am not a lawyer this is my personal opinion not to taken as legal advice

[Ellis27]

Re: Welcome Finance

Thanks for your reply.

Just another question - does anybody know exactly what charges can be reclaimed from Welcome. My daughter has
medicare,
Acceptance fees
homecare
mortgage indemnity fees
added to these loans, can any of these be reclaimed?

[Ellis27]

Re: Welcome Finance

Is there an interest calculator anywhere on this site, thanks

[seduraed]

Re: Welcome Finance

Look at the loans one the welcome tactics is to extendthe loan to reduce payments . if you were handled correctly the interest rates should have been adjusted downwards (IIRC) so that although the eriodis longer you repay the same amount . I cn't now remeber the theamount extra welcome wnated back but i have a feeling that is was £3 for every £1 borrowed