Welcome Finance PPI claims to go through FSCS

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Re: Welcome Finance PPI claims to go through FSCS

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Re: Welcome Finance PPI claims to go through FSCS









sorry but only way i could work out how to display them..

[skv123]

Re: Welcome Finance PPI claims to go through FSCS

Going to print them and take a look now. Thanks for posting that up for everyone mosten.

[lem01uk]

Re: Welcome Finance PPI claims to go through FSCS

Could anyone clarify question C8 - when I get my form do I put yes as I am currently paying a loan and PPI or no because I have no arrears?

Thanks for everyone's help!:tinysmile_grin_t:

[mosten]

Re: Welcome Finance PPI claims to go through FSCS

Any thoughts on the forms they are using then... Trying to works out the legal meaning of some parts...

Still cant see how they can set off against loans and restructure however they want..

Seems like they are ignoring everything under the CCA

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

Could anyone clarify question C8 - when I get my form do I put yes as I am currently paying a loan and PPI or no because I have no arrears?

Thanks for everyone's help!:tinysmile_grin_t:

I think the answer to question C8 is yes and include additional information re the outstanding amount on the loan.
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Any thoughts on the forms they are using then... Trying to works out the legal meaning of some parts...

Still cant see how they can set off against loans and restructure however they want..

Seems like they are ignoring everything under the CCA

I can't see any restructuring of the loan whatsoever on the form, in fact, it seems more confusing ie that you are given the money by the FSCS then need to send it back and they will make a lump sum reduction of the loan.

I'll explain it, any loan you have will be one where you can make additional payments to it. It does not reduce the term of the loan, as such, or the amount of the payments you need to pay but by definition you'll reduce the total amount of interest you pay back in the end.

[di30]

Re: Welcome Finance PPI claims to go through FSCS

Sorry if this have already been posted.


http://www.fsa.gov.uk/pubs/other/financial_services.pdf

MIS SOLD WELCOME COVERED BY COMPENSATION SCHEME.

18.02.2011
Welcome Financial Services Limited (FRN 305742)
Requirements included in the firm’s permission at the request of the firm

Under section 44 of the Financial Services and Markets Act 2000.

Background

1 The

firm has informed the FSA that:

��

it is insolvent and has proposed a scheme of arrangement to certain of its creditors as part of a restructuring proposal; and

��

it is facing substantial potential liabilities arising out of alleged mis-selling of PPI policies to its loan customers and it is unable or is likely to be unable to satisfy those liabilities.
2 In connection with the proposed scheme of arrangement, the firm has entered into arrangements with the FSCS, under which, if the FSCS declares the firm in default, certain payments will be made by the firm to the FSCS to fund the payment of compensation by the FSCS to protected claimants who have valid protected claims against the firm.
3 The firm has agreed to establish a trust fund of £20 million for the payment of redress (including any case fees of the ombudsman service) in relation to complaints from pre-regulation PPI claimants. The firm may make a further payment of up to £2.5 million into the trust fund with the consent of the scheme supervisors or with the consent of the creditors' committee if the scheme supervisors refuse consent. Further payments into the fund may be made with the consent of the creditors’ committee. On a scheme reversion, the trust fund remains in place for the benefit of pre-regulation PPI claimants.
4 The firm has applied to vary its permission to include these requirements and the FSA has granted the application.

5 The firm acknowledges that this is a unique solution to this particular case. Nothing in this document shall be registered as establishing a precedent for the FSA’s approach in the event of similar matters or issues.


You will find more information on the link as posted above.

[EXC]

Re: Welcome Finance PPI claims to go through FSCS

''Welcome customers seeking refunds of mis-sold PPI premiums now face a new hurdle. Under the terms of Cattles’ restructuring, completed a month ago, a sum was paid out of the remains of Cattle to the Financial Services Compensation Scheme for the purpose of meeting PPI claims.

The FSCS then took charge of all claims relating to PPI on policies sold after January 2005. In effect, the FSCS is Cattles as far as these claims are concerned. But the basis on which the FSCS will award compensation is less generous than that applied to other PPI complainants. The key difference is that the FSCS insists compensation must go to cut borrowers’ outstanding loans, so many who have been counting on cash refunds will miss out.................''

PPI mis-selling deal means less compensation as ¿lifeboat¿ leaves victims stranded | Mail Online

[ncf355]

Re: Welcome Finance PPI claims to go through FSCS

Can you still sue Welcome themselves?

[leclerc]

Re: Welcome Finance PPI claims to go through FSCS

''Welcome customers seeking refunds of mis-sold PPI premiums now face a new hurdle. Under the terms of Cattles’ restructuring, completed a month ago, a sum was paid out of the remains of Cattle to the Financial Services Compensation Scheme for the purpose of meeting PPI claims.

The FSCS then took charge of all claims relating to PPI on policies sold after January 2005. In effect, the FSCS is Cattles as far as these claims are concerned. But the basis on which the FSCS will award compensation is less generous than that applied to other PPI complainants. The key difference is that the FSCS insists compensation must go to cut borrowers’ outstanding loans, so many who have been counting on cash refunds will miss out.................''

PPI mis-selling deal means less compensation as ¿lifeboat¿ leaves victims stranded | Mail Online

Negar Yazdani, partner at BlackLion Law in London’s West End, which acts for hundreds of Welcome borrowers, says: ‘A consequence of the FSCS deal is that policyholders will receive less than their due refunds. We hope the FSCS will change its stance and make refunds in cash and not adopt the practice of applying compensation to reduce the loan.’

Read more: PPI mis-selling deal means less compensation as ¿lifeboat¿ leaves victims stranded | Mail Online

Negar Yazdani WOULD say that because the compensation will NOT take into account any fees that the CMC's will have to get for the claims. That means that whilst they can claim to help Welcome claimants initially, they will then turn round and hit them with claims for their fees, potentially vulnerable people being harrassed by people who are supposed to alleviate their obvious hardship.

[pompeyfaith]

Re: Welcome Finance PPI claims to go through FSCS

''Welcome customers seeking refunds of mis-sold PPI premiums now face a new hurdle. Under the terms of Cattles’ restructuring, completed a month ago, a sum was paid out of the remains of Cattle to the Financial Services Compensation Scheme for the purpose of meeting PPI claims.

Should welcome customers have been informed of this? if it affects them surely they should have been informed before it happened.

[righty]

Re: Welcome Finance PPI claims to go through FSCS

Should welcome customers have been informed of this? if it affects them surely they should have been informed before it happened.


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Yes they should & this is being taken up with the powers that be. Also my advice is issue proceedngs now
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http://iva60.co.uk/2011/03/26/

''Should they find in favour of the client, the FSCS can pay up to 90% of the compensation the client may have received should they have been able to direct their ppi claims to the bank.This situation is not unusual and is used more and more by consumers as an increasing number of banks go into liquidation. Some major high street names include Yes Loans and Picture Loans.''


An increasing number of banks going into liquidation?

If Claimline Legal are incapable of being able to distinguish between a bank and a loan company, one can only pity their clients.

Yes but WFC is not in liquidation its still trading insofar as its still taking payments AND has not notified Companies House of any imminent financial demise

[pompeyfaith]

Re: Welcome Finance PPI claims to go through FSCS

NFC,

Yes you can sue welcome no one can take that right from you, but the question is what would you gain from it?

If they paid the last of the money they had to the FSCS I guess you would have a job on your hands getting any award out of them.

What is righty's view on this?

[righty]

Re: Welcome Finance PPI claims to go through FSCS

Just tried reading the terms and conditions in these forms...

Could do with some legal experts to cast an eye over them, since there seem to be a few hidden reasons behind some of them and some points of law that need clarifying.. ..

When I spoke to them a few weeks back they said that they are still off-setting against the loan but the payments will stay the same.... ( so in effect altering the terms of my original contract with them )..

Unfair relationship IMO...

Say for example monthly payments are £70 loan and £30 PPI . If the complaint if upheld its supposed to put me back in the position as if I never had the PPI.

Therefore I should now be paying £70

What law or rules or principles or whatever they call it allows them to do this..?

Your claim needs to argue that the whole of the loan is unenforcable & if you do you can only seek recompense through the courts as the FSCS cannot award compensation which is one of the reasons that they are not a suitable vehicle to settle mis-selling claims

[lem01uk]

Re: Welcome Finance PPI claims to go through FSCS

I am really angry regarding this. Surely if they can just change my loan terms without my consent then the loan documents are worthless. I really feel like cancelling my direct debit and telling them that if they are going to keep all of my compensation I might as well make sure that I have some arrrears (and this ways means I get some cash back from them)!

I do hope that this very unfair decision is overturned, and soon. As usual it is the people who can least afford it that are hit hardest. I am like the lady in the paper today I was told "no insurance, no loan".

Sorry for the moan!