Welcome Finance Car Loan

[trlnurse]

Any advice on this issue would be greatly appreciated!!!

Basically my husband took out a loan for a car in 2007. The cost of the car was £7,185, with interest £10,137. It has now come to our attention that it also includes PPI on £2,205 (including interest).

Anyway, my husband feel behind on the payments, and has stayed in contact with the, about our financial situation. He received the paperwork from fscs regarding reclaiming mis-sold ppi to which we have responded. However, meanwhile because the account is in arears Welcome have sent him a letter stating they request to know the location of the car is and if he fails to respod he will be committing an offence.

I have gone back and checked he original contract which states once he has paid a third they would have to get a court order to resposses, and by our calculations he has actually paid over £10,000 off this debt. Where does he stand with regards to a) them repossessing the car, and b) he is now of the opinion that as they owe him money for the PPI he is not going to make any more payments to them as the £2,000 thats left can be offset against the PPI he never wanted. I'm a little nervous about it, but can understand where he is coming from.

Any thoughts would be great!!

[Caspar]

Re: Welcome Finance Car Loan

You are right that if he's paid more than a third they can only repossess with a court order.

The second point is not so simple. The reclaiming of the ppi and the repaying of the loan are two separate issues and must be seen as such. If you want to keep the car, you should therefore make every effort to catch up or come to an arrangement, then go about recaliming ppi separately.

[CleverClogs]

Re: Welcome Finance Car Loan

Basically my husband took out a loan for a car in 2007. The cost of the car was £7,185, with interest £10,137. It has now come to our attention that it also includes PPI on £2,205 (including interest).

Anyway, my husband fell behind on the payments, and has stayed in contact with them about our financial situation. He received the paperwork from fscs regarding reclaiming mis-sold ppi to which we have responded. However, meanwhile because the account is in arears Welcome have sent him a letter stating they request to know the location of the car is and if he fails to respod he will be committing an offence.

Quite correct - he would be (link) but only if he continues to withhold that information for 21 days.

Isn't it nice of (Un)Welcome Car Finance to remind him of that?

I would suggest he responds as soon as possible and sent by Special Delivery, giving them the precise location in latitude and longitude or as an Ordnance Survey grid reference, as the Act does not stipulate in what format such data is to be provided.

I have gone back and checked he original contract which states once he has paid a third they would have to get a court order to resposses, and by our calculations he has actually paid over £10,000 off this debt. Where does he stand with regards to a) them repossessing the car

If they were to seize the motor car without a court order, under section 91 of the Consumer Credit Act 1974 (link) they would have broken the contract, the debtor would be under no obligation to pay anything more and the lender would be liable to repay all monies paid by the debtor under the agreement.

[trlnurse]

Re: Welcome Finance Car Loan

Thanks for the responses, very helpful. I will let him know about the seperate issues and suggest he makes some form of payment to them. However, bearing in mind he has paid over £10,000, which means he has paid all the capital and interest, would they be in a good position to get a court order for the car?

I also like the idea of the location of the car and will attempt to do that.!!!

[trlnurse]

Re: Welcome Finance Car Loan

Sorry just one other thing, if the PPI and the debt are seperate issues, why have fscs stated any money owing will be offset against any debt outstanding. Surely if these issues are seperate, they should inturn treat them as such?

[Caspar]

Re: Welcome Finance Car Loan

bearing in mind he has paid over £10,000, which means he has paid all the capital and interest, would they be in a good position to get a court order for the car?

It's very hard to answer this as it depends whether this figure includes any late payment charges etc.... Given that you admit you did pay late, they are entitled to place charges against the account, but to be honest, it would be nit picking to say the least if they did not let you just pay off what is owed.

My susipicion is that given the current sitaution with Welcome they're using repossession as a threat to make you pay up. However, it is also in your interests to pay so that you ensure you keep the car.

[alsagerman]

Re: Welcome Finance Car Loan

You don't mention when the original agreement end date is. Car loans don't go beyond five years so the actual end date can't be that far away......can it?