Welcome Finance CCA and default notice

[jim202]

I have asked Welcome Finance for a copy of my agreement due to them sending letters out to me with different amounts left to be paid £3800 £4200 £7800 £5200 I just do not know the real amount. I have been paying less a month to them than the agreement stated but have always made a payment over the last three years of over £100, they pi.... Me of if I was even a day day late with payment phoneing me at work even though I had told them over the phone and also written to them to stop phoneing me at work but they just carried on with the calls so I have CCA them and they are now over the 12+ 2 days they have also sent a default notice today with the incorrect amounts on can anyone advise what I should do next please.


Thanks

Jim

[Guest]

Re: Welcome Finance CCA and default notice

HI Jim

Sorry to hear about your problems, can you tell us;

when the agreement was taken out
when you received your last statement of account from them,
is the loan secured on your house.

Also it would be helpful if you could tell us about your general financial situation. Is this your only debt, are you currently on any debt management plan or do you have any arrangements with other creditors.

Also are you aware of any PPI which may have been paid on any of your loans?

D

[jim202]

Re: Welcome Finance CCA and default notice

The debt is not a secure debt, it was taken about 4-5 years ago.

I have never received a statement of account only when they send me a default and these show different amounts to all letters they send me for the amount outstanding.

I have a total of 5 debts I do have a arrangement in place with all of them but I have a secure loan and mortgage paying full amounts on these so money is more than spars!

No PPI on any thank god.


Jim

[Guest]

Re: Welcome Finance CCA and default notice

OK Thanks

The reason i ask about the date the loan was taken out is because the option of unenforceability arises if it was before April 2007.

If they have sent no annual statement them they are not allowed to charge interest on the account for the periods they have not complied, so the amount you owed at default is the same amount you now owe less anything you have paid. We can go into the legalities of this later.

If you have a number of debts with which you have individual arrangements, i would recommend that you consider contacting one of the free dmp companies.

There is a DMP expert on here i believe that may call in and give you further information, a dmp will negotiate affordable repayments for you and take some of the strain.

Regarding the default notice, who exactly sent it? is the account in the hands of a dca now and how much was it for,

In the mean time try and dig up all the paperwork you can on this debt and resist the temptation of binning any requests for payment, you never know what you may have to relay on..

When we have all the info we will concoct a response for you.

D

[jim202]

Re: Welcome Finance CCA and default notice

Default sent by welcome Finance the default states the amount of the original loan with out any payments taken off it should read £380.00



Jim

[miliitant]

Re: Welcome Finance CCA and default notice

does the default notice state pay within 14 days or an exact date (numerical) it has to be paid by

on the top of the default notice, does it state served under section 87 (1) of the consumer credit act 1974

[Guest]

Re: Welcome Finance CCA and default notice

HI we need to know more details of the account,

when was the agreement taken out

over what period

If the agreement has gone past its term they do not need to send a default notice, as all the sums under the agreement will be arrears, and the contract will have run its term.

I suggest that you query the amount claimed.

I would send them a letter saying that you are startin a DMP with***** and need an accurate statement of account.

Payments to creditors are made on a pro rata basis so you will need an accurate balance statement in order to pay the correct amount.

Tell them that they should allow you 28 days to prepare the plan and also tell the that they should present an up-to date statement of account, point out that you have not received a statement of account for ** years.

If you are interested in pursuing this course i will draft a letter for you , if not you may want to raise further options we can look at.

D

[miliitant]

Re: Welcome Finance CCA and default notice

quote

If the agreement has gone past its term they do not need to send a default notice, as all the sums under the agreement will be arrears, and the contract will have run its term.

interesting that comment and intrigued as to be honest i have not come across it

may i ask where it states that in the cca or default and termination regulations

what you say in effect is true and that if the agreement has run its term then any shortfall will be arrears but those arrears can still have contractual interest attached for example, just because the agreement has run its term does not mean the agreement has ended, and to end an agreement, a termination notice needs to be given and a default if in arrears as a prelude to termination

at the end of the day, an agreement is still live until terminated by the creditor as to the default and termination regs

if i am in error i will gladly put my hand up so clarification would be nice

[Guest]

Re: Welcome Finance CCA and default notice

Sorry i thought this was self evident.

The DN is only required in order to terminate an agreement due to breach and enable an accelerated payment,

If the agreement has reached it's term there is no need terminate and all sums due under the contract will be due(they will be arrears).

The notice mearly acts as a letter before action in this scenario.

Contractual interest can still be charged post termination in any case as long as the agreement permits it, the same as post judgment interest.

Just to clarify further, the terms of the agreement say that the principle plus interest must be repaid in a particular way and within a particular time, if liabilities have not been settled within the term, the agreement would have run its course and be terminated, all liabilities due would be recoverable through the courts, the same as any other contract.

Unfortunately this is why payday loan companies are not compelled to issue notices

D

[miliitant]

Re: Welcome Finance CCA and default notice

i see where this is going

quote

The DN is only required in order to terminate an agreement due to breach and enable an accelerated payment

but by missing a contractual payment building up the arrears you are in breach of the said agreement which would by itself extend the agreement,
the creditor may for example offer a "payment holiday"
which would extend the agreement

the agreement has gone post its term due to the arrears whereby the creditor is terminating the agreement via a default notice as all contractual payments have not been met

quote

Unfortunately this is why payday loan companies are not compelled to issue notices

are you saying that payday loan companies cant charge contractual interest past the 30 day term as the agreement has ended, be it the agreement has been settled or not as the agreement has ended

so all the payday loan company can claim for non payment would be the principle sum plus the 30 days interest

lets please keep this civil as its a healthy debate and education is the key on two different points of view

[Guest]

Re: Welcome Finance CCA and default notice

i see where this is going

quote

The DN is only required in order to terminate an agreement due to breach and enable an accelerated payment

but by missing a contractual payment building up the arrears you are in breach of the said agreement which would by itself extend the agreement,
the creditor may for example offer a "payment holiday"
which would extend the agreement

the agreement has gone post its term due to the arrears whereby the creditor is terminating the agreement via a default notice as all contractual payments have not been met

Hi

If the agreement was breach during its term the creditor would be entitled to the arrears, if he wanted to pursue sums not yet due under the agreement he would have to issue a DN and give the appropriate remedy period.


If both parties agreed to extend the term of the agreement then that would be different, if there is the facility to vary the agreement in this manner and both parties agree, is that the case here?

D

[miliitant]

Re: Welcome Finance CCA and default notice

i agree on the above

[Guest]

Re: Welcome Finance CCA and default notice

I think from the OP's point of view pursuing the sanctions for a possible defective DN would not be beneficial in any case. Proceedings have not commenced and even if a dn was required they could simply issue another one.

I think it would be counter productive to get bogged down in what really is irrelevant as far as the OP is concerned, although i will gladly debate this if needed elsewhere.

D

[miliitant]

Re: Welcome Finance CCA and default notice

i agree

many thanks

[jim202]

Re: Welcome Finance CCA and default notice

Agreement started 09/10/2008
default amount: £3821.68
Default sums: £163.00
Default interest: £35.45

Jim