Welcome Finance - Unenforcable?

[Bankstormer]

Hi to all,

My cousin asked me to help him claim back some miss sold PPI from Welcome finance after he heard that i had sucessfully claimed it back for myself and other family members (Not from Welcome Finance though!).

He came into some money and wanted to clear his loan, which was having huge amounts of interest and charges added to it, but he knew that the PPI had been mis sold.

I wrote a letter for him, asking them for a settlement figure and they duely replied. I then calculated how much the PPI had cost him to date including interest and deducted that amount from the settlement figure which they had quoted.

I then wrote another letter to them offering an amount which was equal to their figure minus what i believed that they owed him and explained my calculations.

All pretty standard stuff.

Today i spoke with welcome finance to ask if they were going to accept our offer, and the reply has really thrown me.....

The lady who i spoke with said that if we were to go through with the PPI claim and it was upheld - then it would deem the whole debt unenforcable and we wouldn't have to pay anything. She seemed confused that we were offering money to clear the debt when we had a case to have it written off.

Correct me if i'm wrong but has she just shot herself in the foot, surely if they had accepted the payment and called it a day then it would have all been over and they would have had their money back plus interest. She should have kept quiet, however, she never and now i would like to dig deeper.

Does anyone know anything about these sort of claims and how we would go about submitting one, and also how likely we are to be sucsessfull and how long it would take.

Any help would be appreciated.:beagle:

[Amethyst]

Re: Welcome Finance - Unenforcable?

The lady at welcome finance said that ? very bizarre, bet she'll be in trouble if that calls listened to at any point.

PPI being missold doesn't automatically make the agreement unenforceable but if the PPI was stated in the total charge for credit/or the interest on it were stated as total charge for credit when in fact it was optional then there would be flaws in the agreement which would make it unenforceable.

I think you should send a CCA request letter off and get the actual agreement so you know where you stand.

what kind of balance is remaining on the account.

Also remember they have had the PPI money and interest on it to date and you can charge them interest back on it too, so everything you have paid them plus charge them a contractual rate of interest for having had your money, so could be that wipes the debt anyway.

[Bankstormer]

Re: Welcome Finance - Unenforcable?

Thanks for the quick reply,

The PPI (and other insurances) were added to the total amount of credit and then interest was applied (at 36.6% APR!!!) I know that this is not allowed and that they have to include the cost of the PPI in the charge for credit and not the credit itself, (when the loan is conditional on taking out PPI) even though they will argue that it wasn't.

I have the original documentation so no need for a cca request.

The settlement figure on the loan is approx £7500

PPI owed including interest is approx £3500

Contractual intrest added wouldnt change our situation much (but i will be adding it)

[Amethyst]

Re: Welcome Finance - Unenforcable?

That'll be why then...nice of her to draw your attention to it. see curly on thread so won't ramble on

[Bankstormer]

Re: Welcome Finance - Unenforcable?

Curly on thread?

Sorry, not sure what you mean.

[Amethyst]

Re: Welcome Finance - Unenforcable?

lol don't worry xx

Any chance you can scan up your agreement (pers details removed)

[Bankstormer]

Re: Welcome Finance - Unenforcable?

Its not the best copy, but it's what they sent us:

(Page 1)

(Page 2)

(Page 3)

Any thoughts?

[Amethyst]

Re: Welcome Finance - Unenforcable?

Is it secured on your property ?

[Bankstormer]

Re: Welcome Finance - Unenforcable?

It is secured on his property - yes

[Bankstormer]

Re: Welcome Finance - Unenforcable?

Any Thoughts?

[Bankstormer]

Re: Welcome Finance - Unenforcable?

Hi All,

I am having the same situation, I can't really understand my credit agreement. When I took out the loan I had to go to the welcome finance office and sit with an advisor, she told me that unless I took the PPI I couldn't get the loan. I thought it was something I had to do.
I have looked on my agreement and it does state how much PPI I will be paying over 36 months so not sure where I stand with that.
I have missed about 3 or 4 payments with welcome and was told over the phone each time I called that it was ok, they would just add the extra payments onto the end of the agreement. What they failed to tell me was that they were adding interest onto the missed payment amounts.
I borrowed £2600 and have so far made 32 payments of £208.89, so they have already had 6684 from me for a loan of 2600?! but have been told I still owe £2,300! I am confused and angry about what my rights are as what I was originally told when I had 4 late payments was that they would just be added onto the end of the agreement so instead of the agreement finishing in june this year it would be october.

Now if I continue to keep making my payments of 208.89 monthly, not only am I being charged interest for being over the period of loan as the loan should of finished at the end of this month (at what rate I do not know) It will take me another 11 months to pay off when I have only really got 4 more payments to make.
I fell as though I don't want to push this as if you get a black mark on your credit report from welcome finance you will never get credit again and I have actually been threatened with that over the phone by one of their representatives.

Please can someone help? I am so stressed out and need some advice on what my rights are and how we can all pull together to stop other people from getting into the same situation as the whole loan & PPI is misold in my opinion.

HELP!!!!!!!!!!!!!!!!

COULD YOU PLEASE START YOUR OWN THREAD TO AVOID CONFUSION!

[Paule]

Re: Welcome Finance - Unenforcable?

COULD YOU PLEASE START YOUR OWN THREAD TO AVOID CONFUSION!

Bankstormer, while you may be adept at using forums and the etiquette not everyone else is.

This was Ripped Offs first post on this forum and quite possibly any forum.

It serves no purpose to not only shout (Use of Caps) but type in red also to a newcomer.
This is hardly in the spirit of the community of the forum, and gives people a bad impression of yourself.

In future, rather than shouting at people, why not click the report button and ask a moderator to move the post.

[Paule]

Re: Welcome Finance - Unenforcable?

Ripped Off

I have set you up a thread here

Ripped Off v Welcome Finance - Legal Beagles

PKea

[Amethyst]

Re: Welcome Finance - Unenforcable?

bankstormer I have flagged your thread up to a couple people who are a bit more adept dealing with welcome. As a secured loan I'm not sure. Will be with you shortly.

[pt2537]

Re: Welcome Finance - Unenforcable?

Hi there

Can you please detail the figures please as the agreement is illegible.

while this fails to comply with Regulation 2 CCCNCD Regulations 1983, it is not enough to kill the agreement

if you can set out the main points, like,

Credit £400000

Total Charge for Credit £ 5000000

Total Amount Payable £9999999


Repayments 90 months at £4000000 per month

then i can run the figures and check them out

also let me know if there was any PPI etc