Baby J v Welcome

[Baby J]

Hi guys hope this is the right place to post this.

My mother in law took out a £15K Welcome loan 'secured' on her house to consolidate debts in 2008. 120 months at £325 per month (£39,000!!! total to repay).

She's struggling at the moment with ill health (she has never defaulted) but is terrified by the prospect of another 5 years of payments if her health means she has to leave her job.

I've noted all the advice above about checking that everything on her account is in order with SDAR request etc but is there any other advice you can offer she's scared of defaulting as the loan is secured on her house. Thanks

[enaid]

Re: Baby J v Welcome

Have you checked if there is PPI on the loan?

[Baby J]

Re: Baby J v Welcome

Yes there is PPI she's been paying 37 a month since start of loan and these payments finish in November.

[enaid]

Re: Baby J v Welcome

Yes there is PPI she's been paying 37 a month since start of loan and these payments finish in November.

Well the PPI will either pay out and help if she does become too ill to work or it may be the PPI was mis sold and you can reclaim all the repayments and that will be set against the loan to reduce it.

[Baby J]

Re: Baby J v Welcome

Thanks for that is there a limit to how long ppi pays out for or will that be in the small print somewhere!!

[enaid]

Re: Baby J v Welcome

Yes have a read of the policy it should all be in there.
There are also a few reasons why it may have been mis sold and I would imagine all though can not be sure that going off Welcomes record it was.

[Baby J]

Re: Baby J v Welcome

So I guess the next step is to see which is worth more? Claiming on it if she becomes too sick to work or claiming it back to reduce the loan?

It just seems like such a huge amount of money she's having to pay for this loan. Is there a chance it's not secured on her house? Reading the previous posts it seems questionable in some cases.

[Guest]

Re: Baby J v Welcome

HI Baby J

Yes welcome are one of the worst sub prime lenders although now defunct of course. It works out at an APR of about 26% which is not good for a secured loan.

I calculate that if she has been paying for 5 years there would be an early settlement of about £11,850 include the rebate. still a lot of money, it is because all the interest is on the front end unfortunately.

Regards
Andy

[Baby J]

Re: Baby J v Welcome

Just an update she's been paying £110 for (almost) 60 months (up til the end of Nov 13) for PPI. It won't cover her as the illness was a pre-existing condition. When she tried to cancel the PPI because of this she was told that she couldn't as it would affect her original credit agreement and she would be in default.

Also when the payments for PPI end in November she has been told that her loan repayments will still be £325 per month and not reduce by the £110 PPI amount that made up part of this figure.

Can we help her out of this mess? Is there any point in asking for SDAR and trying to get any unreasonable charges taken off to reduce what she still owes and then go down the mis-sold PPI route to get more reduced from the amount owed. Help?? They seem like a bunch of cowboys preying on the desperate!

[Guest]

Re: Baby J v Welcome

Just an update she's been paying £110 for (almost) 60 months (up til the end of Nov 13) for PPI. It won't cover her as the illness was a pre-existing condition. When she tried to cancel the PPI because of this she was told that she couldn't as it would affect her original credit agreement and she would be in default.

Also when the payments for PPI end in November she has been told that her loan repayments will still be £325 per month and not reduce by the £110 PPI amount that made up part of this figure.

Can we help her out of this mess? Is there any point in asking for SDAR and trying to get any unreasonable charges taken off to reduce what she still owes and then go down the mis-sold PPI route to get more reduced from the amount owed. Help?? They seem like a bunch of cowboys preying on the desperate!

Hi Again

This is nonsense.

If she had a pre-existing condition when the PPI was taken out this in of-itself can be considered as miss-selling.

Does she still have the original agreement ?

Andy

[Baby J]

Re: Baby J v Welcome

Thanks Andy - yes she does have the original agreement

[enaid]

Re: Baby J v Welcome

If it was missold the FSCS will deal with the claim info on that in the link


http://www.fscs.org.uk/news/2011/mar...cial-7pghpepm/

[Guest]

Re: Baby J v Welcome

HI Baby J

I have seen agreements posted on here, but I am not sure how to go about it, perhaps if someone would assist, we could have a look, you will need to cover all identifiable information regarding customers name account number etc of course.

I see no reason why the repayment should not drop when the term of insurance expires, was my calculation regarding the APR correct ?

Andy

[Baby J]

Re: Baby J v Welcome

Thanks guys will get a copy of agreement and post back. Interestingly when you phone FSCS customer helpline it seems to go straight to Welcome themselves.

[enaid]

Re: Baby J v Welcome

http://www.fscs.org.uk/what-we-cover...cial-hn0qripj/