Welcome Finance PPI claims to go through FSCS

[lem01uk]

Re: Welcome Finance PPI claims to go through FSCS

No, I did not sign up with the solicitors I have claimed myself. Luckily I was not taken in by the person on the other end of the phone but I worry for people who will believe what these people are telling them and then will end up with a large bill and no means of paying.

Thanks.

[MBD23]

Re: Welcome Finance PPI claims to go through FSCS

they will have means of paying them, the cmc or soliciotr will put them on a payment plan, and the claiman benefits from reduced monthly payments due to the loan being reduced and can use the money towards the payment plan..OK?

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Ok, they are really not helping so I've asked them even more clarification.
However, having really really read through the FAQ's these are some of the conclusions I am drawing.
1) If you go through the FOS, it will be referred to the FSCS and you have no redress to the FOS should you not agree with the compensation. Am still attempting to clarify successful payments/restructuring loan and paying of arrears as such.The key question is really the meaning of this sentence: "Under the FSCS Rules, amounts of compensation
payable will be first set off against any outstanding loan balances you may
owe to WFSL"
"outstanding" or "arrears" that is my question really.

2) No idea if the JR has any effect on the payments(cos they haven't answered that question).

[lem01uk]

Re: Welcome Finance PPI claims to go through FSCS

Thank you leclerc. This is the main thing that I was wondering about, does outstanding mean any balance on a loan you have or arrears.

Thanks again for your help.

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Thank you leclerc. This is the main thing that I was wondering about, does outstanding mean any balance on a loan you have or arrears.

Thanks again for your help.

That's what I am trying to clarify with them because the wording is open to interpretation. I'm also interested in whether the loan will be restructured as well.

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

Spoke to Welcome today...


Any loan taken before Jan 15th 2005 Welcome will process as before and they will not offset any refund against any outstanding loan balance if this is only loan.


FSCS however will still look to offset any redress regardless of client in arrears or not.
( hopefully when they first try this the CMC.s or solicitors involved will take them on for doing this )


TWO MAJOR PROBLEMS ARISE:

1)

If client has three loans for example.. one taken out 2004 (Welcome will deal) and 2 further ones taken say 2008 that continue (FSCS will deal) .

If welcome decide that redress is due of say 2k then FSCS will restructure the current loan with the highest interest rate even if there was no PPI on the current loans. Unfair IMO


2)

If client got say 2.4k loan left with 24 mths to go..i.e 100 pound a month

due redress/refund of 1k...

loan is now 1400 over 14 mths at still 100 pound per month...

Gonna cause major headaches where clients have signed up with CMC'S since even if they offer monthly payment plan options for the CMC's fee (assuming they still allowed to offset against loans that are up to date) . the client does not have any additional disposable income compared to if they had of reduced the payments of loan or better still given them back the money if they wanted it.

It is going to get really messy once CMC's start legal proceedings against FSCS..

[pompeyfaith]

Re: Welcome Finance PPI claims to go through FSCS

It is going to get really messy once CMC's start legal proceedings against FSCS..

Indeed and I am still trying to underatnd how the FSCS can ignore the terms and conditions of a welcome loan surely those terms and conditions still stand if not which ones do.

Offsetting any arrears I would imagine will be in the terms and conditions as would x amount over x amount of years so how can they get you to pay more than the arrears.

Would love to see this go in from of the court.

[ncf355]

Re: Welcome Finance PPI claims to go through FSCS

I think this is going to be very interesting

If it was Welcome themselves saying they were going to pay PPI refunds against the loan balance, the legal argument would seem quite cut and dry

But given that FSCS are an industry supported compensation scheme I can't see the legal argument being so easy to make unless I'm missing the legality that compels FSCS to make the compo payment direct to the claimant rather than against the balance owing


Dont get me wrong, I want to see the money go to the claimant and I've said before I cant see how they can just tear up the terms of a legally binding agreement, but what IN LAW stops them saying "our way or the highway"?

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Spoke to Welcome today...


Any loan taken before Jan 15th 2005 Welcome will process as before and they will not offset any refund against any outstanding loan balance if this is only loan.


FSCS however will still look to offset any redress regardless of client in arrears or not.
( hopefully when they first try this the CMC.s or solicitors involved will take them on for doing this )


TWO MAJOR PROBLEMS ARISE:

1)

If client has three loans for example.. one taken out 2004 (Welcome will deal) and 2 further ones taken say 2008 that continue (FSCS will deal) .

If welcome decide that redress is due of say 2k then FSCS will restructure the current loan with the highest interest rate even if there was no PPI on the current loans. Unfair IMO
"What should I do if I have claims relating to PPI sold by the firm both before 14 January 2005 and on or after 14 January 2005?
If your claim relates to a policy sold before 14 January 2005, you should contact the firm directly and it will process your claim. If you also have a claim relating to a policy sold by the firm on or after 14 January 2005, the FSCS will send you an application form for you to make a claim.

Return to top"

The redress pre 2005 goes to you and the redress post 2005 date goes into the loan ie 90% compensation onto the loan that maybe outstanding. That may mean that in total you might have a positive balance all in all and paying off the loan in full would release any funds ie the monthly payment to you and therefore make you better off than previously.(hardship question is answered on the FSCS website FAQ's
FSCS As for Welcome Financial Services Limited

2)

If client got say 2.4k loan left with 24 mths to go..i.e 100 pound a month

due redress/refund of 1k...

loan is now 1400 over 14 mths at still 100 pound per month...

Gonna cause major headaches where clients have signed up with CMC'S since even if they offer monthly payment plan options for the CMC's fee (assuming they still allowed to offset against loans that are up to date) . the client does not have any additional disposable income compared to if they had of reduced the payments of loan or better still given them back the money if they wanted it.

It is going to get really messy once CMC's start legal proceedings against FSCS..

The loan restructure should not really work that way with regards to PPI and loans the term of the loan should not change merely the amount over the term of 24 months. The only way that I currently understand it is that the payment amounts do not change under the terms of the FSCS.

BTW. The CMC's cannot take legal action against the FSCS imho, only against Welcome Finance. I hope someone can correct me if I'm wrong.

[pompeyfaith]

Re: Welcome Finance PPI claims to go through FSCS

IN LAW stops them saying "our way or the highway"?

The terms and conditions of the loan which is a legally binding agreement, as you say will be interesting as the way I see it they just cannot tear it up.

As both parties agreed and signed as such until x date

[ncf355]

Re: Welcome Finance PPI claims to go through FSCS

The terms and conditions of the loan which is a legally binding agreement, as you say will be interesting as the way I see it they just cannot tear it up.

As both parties agreed and signed as such until x date
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I can see that, but surely FSCS arent actually legally obliged to pay back a penny, so they can by that rationale decide where the money goes?

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

The terms and conditions of the loan which is a legally binding agreement, as you say will be interesting as the way I see it they just cannot tear it up.

As both parties agreed and signed as such until x date
[/COLOR][/LEFT]

The agreement can be torn up but both side must agree to the new terms of the loan especially as redress would require a new agreement based on the interest rate at the time the loan was taken out(that may be higher than it is today) and the length of time remaining on the loan, ie if 24 months is left then the new agreement must be for that period of time, etc, etc,
I don't think the FSCS will rework agreements and now only if someone had taken out a 7 year or 10 year loan would that formula be used.

[lem01uk]

Re: Welcome Finance PPI claims to go through FSCS

I really hope that the payments are reduced if I am successful.

I signed up for a 25 year (yes I'm really stupid!!!!!!!!!!!!) secured loan and my payments are £404 a month. I could really do with a reduction in these for a short while to help me out, and then I would be more than willing to pay some extra on top of the reduced payments to pay the loan off a lot quicker than the current 25 years.

If the FSCS don't reduce the payments then I don't feel as if I have been helped out at all.

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

They are planning to reduce term and not payments.. confirmed that with me yest over phone...

They mentioned something yesterday that even thou you will have to pay full payments but over shorter term, even thou the PPI is taken off, you will still be covered by the PPI ??????

Confused the he'll outta me tbh...

[ncf355]

Re: Welcome Finance PPI claims to go through FSCS

So FSCS have now got the power to rip up statute?