Welcome Finance- secured loan issues

[Shadowcat]

Re: Welcome Finance- secured loan issues

Like you say Ruby - a real piece of art. Their own rules that they thought they could go on applying ad infinitum. That's a risky strategy even when you're in profit but as they are fast finding out, too risky when your funds dry up leaving you no place to go.

A lesson to be learned for anyone thinking of setting up business with less than honourable intentions, greed in moderation is a part of successful business, when it becomes the driving force that's a problem.

I bet they've still got a licence. OFT need to just step in and take it away if so, how far do these companies have to push the boundaries?

[Ruby]

Re: Welcome Finance- secured loan issues

Hi Guys, hope you can help. Another issue has raised its head with Welcome.

At the end of January I complained verbally to Welcome that a Default had been placed on our Credit File and that it showed a much higher balance on the file than on the yearly statement I received in January and the balance was even higher than the 'default' balance!. I sent them a complaint by e-mail at the beginning of February with supporting proof of the credit file entry.This was what the staff member suggested I do rather than post the stuff. To date I have not received a reply back.

The Default placed on my credit file (dated 2009) showed essentially all the payments we have made on the account to date had in essence 'evaporated' somewhere.

I have recently spoken to another staff member who said that the complaints department take a very long time to get back to customers (2 months so far!) but another very worrying thing is dispite making over and about regular contracted payments our arrears balance had increased by £2000!. The staff member said that it was an IT issue and would get it sorted.

Today however I received a letter headed 'Failure to Read This Letter May Result to Legal Proceedings'.

The first paragraph reads:-

You are hereby served under Section 87 (1) of the Consumer Credit Act with the attached Default Notice. We intend to excerise our rights to enforce collection unless you clear the arreas within fourteen (14) days or alternatively contact us with the proposals for payment.

Any ideas what I should do? The figures don't add up which I mentioned to them in myformal Complaint at the beginning of February. If they can prove that the account was defaulted in 2009 (I can't remember it being so) and when I SAR'ed them a few months ago, nothing of the sort was forcoming - can they default the account twice?

Any comments? .......

[miliitant]

Re: Welcome Finance- secured loan issues

a credit accoint can only be defaulted once unless the arrears are brought up to date before the expiry of the notice

does the default notice say when to clear the arrears by

the default notice is pure crap anyway as it does not specify a date to clear the arrears by

a numerical date needs to be inserted, not just saying 14 days

i won my claim against welcome on this issue as well as hurstanger. the judge ordered them to submit the underwriting sheet

[Guest]

Re: Welcome Finance- secured loan issues

Have you recieved a section 87 default notice on this account before?

Does the current notice give an amount to remedy and is this ammount correct?

Peter

[Guest]

Re: Welcome Finance- secured loan issues

Hi
Sorry just read you previous post.
I think a simple letter sent recorded post stating that, the arrears on the account are subject to an existing arrangement and that the sums mentioned are incorrect, should do the trick, you could also mention that in order to enforce the notice has to be accurate.
Peter

[Ruby]

Hi all thanks for that. My credit file states that the account was defaulted in 2009. I don't remember receiving any such notice at the time however my mum was terminally ill with cancer during that period and died in November of that year so as you can imagine had other things on my mind! My arrears have not been cleared during that period, but have been decreasing (or should have been as I have been paying more than the contracted amount)so good to know that they can't default twice! The amount stated to clear the arrears is £6000! Notice is dated 1/4/2012 and to pay within fourteen days?! They seem to make up figures as they go along, it just does not add up at all. Will be sending a letter by recorded post this coming week. I am not trying to avoid this debt, especially since the loan is 'secured' however I feel that the money I am paying seems to be evaporating in their system and I can't get an accurate figure from anyone.

[Guest]

Re: Welcome Finance- secured loan issues

HI
It is true that once a record of default has been placed on your credit file a further record cannot be made relating to the same account at a later date, but it should be noted that the entry on your credit file has nothing to do with the section 87 notice that you received.
The latter is a notice that informs you of their intension to take court action for the balance due on the account.
The law says that before they can withdraw your facility to repay the loan by instalment they must give you 14 days’ notice, if you pay your arrears within this time then they cannot seek early repayment, this is what the section 87 notice does.
You really need to get hold of statements of your account showing the transactions you have made, and in particular the additional payments you have been paying towards the arrears. They are compelled by law to issue you with annual statements.
Should this go to court you will need to show that you have made these payments have been made in order to persuade the judge against giving an order for immediate payment.
Peter

[Ruby]

Re: Welcome Finance- secured loan issues

My gut feeling is that the interest rate has been altered a number of times on the account and that is why the figures are so inaccurate. One of the staff was talking about IT problems causing the inaccuracies. That does not help my case in the meantime, however I will mention this in my letter to them and request that all correspondence is done by letter from now on to avoid any confusion. With regard to credit files, surely they, as do all financial institutions, have a legal responsibility to make sure the information they report is accurate and correct?

Ruby

[Guest]

Re: Welcome Finance- secured loan issues

With regard to credit files, surely they, as do all financial institutions, have a legal responsibility to make sure the information they report is accurate and correct?

Ruby

They do, is it not the case that the account enterd default in 2009?

Peter

[Ruby]

Re: Welcome Finance- secured loan issues

Yes, accordingly to Experian. Do not remember getting all the appropriate literature at the time, due to circumstances mentioned earlier. Due to their current circumstances are their secured loans, still secured - in other words how much bite to Welcome still have?

I am trying to build as much defence as possible in my head, obviously worried at the same time

Ruby

[Guest]

Re: Welcome Finance- secured loan issues

Yes, accordingly to Experian. Do not remember getting all the appropriate literature at the time, due to circumstances mentioned earlier. Due to their current circumstances are their secured loans, still secured - in other words how much bite to Welcome still have?

I am trying to build as much defence as possible in my head, obviously worried at the same time

Ruby

THe account would have gone into default when the required number of payments were missed, this did not mean that Welcome had to terminate the account.
The account can not be terminated until a section 87 notice has been served. This has now been recieved i believe.
Therefore all securities that were on the account at execution will still be there.

Peter

[Ruby]

Re: Welcome Finance- secured loan issues

Ok, I will safetly assume then that the best course of action is to challenge them on their inaccurate figures and WHERE is my money evaporating to?!!!! What if they do terminate the account?

[Kafka]

Re: Welcome Finance- secured loan issues

Ruby

These cowboys don't send you statements, so you can't see what they are doing. SAR will reveal this and you will normally see that they have added on blocks of additional 'fees' that don't form part of any agreement. The whole idea is that the account never clears and when you realise that you still owe X 1000, they offer you a new deal with more loan and a lower rate of interest.

I had about 1000 added onto a loan when I got the SAR details. They act ignorant and are very intimidating, but I faced them off and they eventually removed the additional fees and the default. refuse to pay anything until you have full statements of what has been added to the account.

[Shadowcat]

Re: Welcome Finance- secured loan issues

Two threads for Welcome, maybe we could merge them?

Anyhow, the latest - received letter asking us to send £10 for SAR, which was done in January. Letters arriving some on green letterhead, some on photocopied letterhead, some from head office, some from local branch. I am even more suspicious now that local branch and/or someone at head office is pulling a fast one and having repayments siphoned into a different account that officials know nothing about. The £10 cheque for SAR was cashed, where did it go?

I am not possibly insinuating that directors are being bank-rolled.

[dogtired]

Re: Welcome Finance- secured loan issues

They did that with my £1 Incasso apparently payed it into th account saying that they had not known that is what it was for.
Two further letters from them since then, one saying I have to contact Welcome the other saying i must contact them its getting silly.
Not replied to them since January on advice of CAB adviser who has now said that both alleged accounts are irretrievably unenforceable
I KNOW they conned us but I cannot prove it.