Welcome Finance PPI claims to go through FSCS

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Welcome Financial in default over PPI sales - IFAonline

[dogtired]

Re: Welcome Finance PPI claims to go through FSCS

Not sure if this is addition to what has already been posted but I thought it was usefull, note the dates.
http://www.fsa.gov.uk/pubs/other/financial_services.pdf

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

According to FSCS , if acceptance form wasn't in welcomes head office by 2/03/2011 then they will ignore all previous complaints whether from indivdual or via CMC's.

Sending out their own form / questionnaire to 30,000 clients a month starting end of week... (380,000 in total)... why they cant just use the previous complaint forms is obv delaying tactic...

Clients will be getting chased by CMC's still for 25%'s since they signed T & C ' S I imagine

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

FSCS say that any redress will now come off the loans regardless of whether up to date or not since welcome in default...


QUESTION: (simplified figures)


Example.. I have loan of £8000 over 5 yrs... PPI was £2000 on top.. £10000 total...

payments for arguments sake £250 pm (£200 for main loan and £50 for PPI loan)


After 3 yrs I still owe £4000... (again simple figures)

If I am due say £1800 back then I now owe £2200 since they will reduce loan...

Do I pay the remaining £2200 over the 24 mths left or do I have to maintain my £250 per month (or £200 if PPI is now taken off) until my loan is paid off ..eg 9 mths from now instead of 24... (So reduce payments or reduce term ? )

If I signed up for x amount over x amount of months on an agreement then shouldn't I have the choice to lower my payments and maintain the term...

Can FSCS do whatever they feel like since they already have decided to apply the offset rule when previously they haven't...?


All thoughts welcomed.... er.. appreciated

[dogtired]

Re: Welcome Finance PPI claims to go through FSCS

Looks like a typical delaying tactic to me, as they are "in default" where is this payment coming from, the web site still looks active asks you to make payments still waiting for FOS anyway who didnt even know about it when I rang to ask

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Out of interest, with Welcome finance, do they charge a fee for settling the loan early?

[dogtired]

Re: Welcome Finance PPI claims to go through FSCS

Would not be at all surprised they do for everything else!

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Would not be at all surprised they do for everything else!

But if the missold PPI is paid onto the loan and the payments not amended then AFAIK the consumer is penalised further because they will finish their loan earlier and incur a charge. I wonder if any of you guys could clarify whether amendments would be made to the loan if the PPI is missold?
And if the answer is no, whether the charge for completing the loan earlier will be waived since by definition, the loan will end early and according to the agreement means a charge for early repayment becomes payable?

Hope that makes sense.

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

Still reckon there will be some challenges to whether they are allowed to offset or not...

If the forms they send out are not simplified from what they have at the moment they are creating a massive headache for themselves...

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Still reckon there will be some challenges to whether they are allowed to offset or not...

If the forms they send out are not simplified from what they have at the moment they are creating a massive headache for themselves...

If they are allowed to offset then surely under redress they have to reduce payments to a level in which, had you not taken out the cover, you would be paying otherwise you are still at a detriment if you have to pay a penalty at the end of the loan to repay it in full.

[skv123]

Re: Welcome Finance PPI claims to go through FSCS

But if the missold PPI is paid onto the loan and the payments not amended then AFAIK the consumer is penalised further because they will finish their loan earlier and incur a charge. I wonder if any of you guys could clarify whether amendments would be made to the loan if the PPI is missold?
And if the answer is no, whether the charge for completing the loan earlier will be waived since by definition, the loan will end early and according to the agreement means a charge for early repayment becomes payable?

Hope that makes sense.

As a standard rule Welcome have previously removed the PPI and reduced the monthly payments.

I they are applying the full redress then to keep to the same term the payments would have to be reduced even further. I suppose they could amend the term in their offer so as not to penalise anyone for early settlement going forwards...

[pompeyfaith]

Re: Welcome Finance PPI claims to go through FSCS

Surely if they offset more than any arrears that is a breach of contract, as they agreed to x amount over x amount of years.

And if they do intent to have you pay back more than any arrears I fail to see how they can as it is not in the contract which I have been led to believe is sacrosanct.

One for the legal minded perhaps to explain.

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

I still cant work out how they are going to do this..

a) they will be challenged as regards to whether they are allowed by solicitors/CMC's since this will cause them problems getting the fees...

b)If they can take off the loan do they reduce the payments or reduce the term..?

need the legal experts on the case deffo

[skv123]

Re: Welcome Finance PPI claims to go through FSCS

Surely if they offset more than any arrears that is a breach of contract, as they agreed to x amount over x amount of years.

And if they do intent to have you pay back more than any arrears I fail to see how they can as it is not in the contract which I have been led to believe is sacrosanct.

One for the legal minded perhaps to explain.

Generally speaking it is correct that they can't offset more than the arrears. This isn't something that has ever been allowed.

This new " Right of Set Off changes to BCOBS" gave me an initial concern that they now had the right to set off against any debit balance: http://www.legalbeagles.info/forums/...299#post201299

However contained within the provision at Annex B 4.1.4A G (2) it states that the consumer needs to be told of the right to set off in good time before being bound by the contract for the retail banking service.

This won't have occured on any of these and so there is no right to set off against the debit balance. Although there is still the right to set off against any arrears that exist.

If the FSCS or anyone else attempt to set off in full there is no doubt in my mind that it would be challenged fairly siwftly and en masse.

This is all my own opinion and just how i see it but i'm struggling to see how it can be justified because as you've said contracts are held in rather high regard.

[pompeyfaith]

Re: Welcome Finance PPI claims to go through FSCS

Indeed the financial industy are quick enough to bring the consumer to court if the contract is breached.

So the same should apply if they breach it also in there favour they cannot have the cake and eat it so to speak.

This all seems one sided to me in that welcome are unfairly calling in the contracts with the help of the FSCS to clear there loses.

Could be wrong on the last point but that is what it feels like.