Welcome Finance - Default Notice - HP Agreement

[DNA]

Hi, I need some advice from someone in the know because I've not got a clue!

I am party to an HP agreement in joint names with Welcome Finance secured on a car we purchased in 2002. We had financial difficulties in the past and Welcome served us with a Default Notice on 5 April 2006 basically saying pay the arrears or come to an arrangement within 10 days or the agreement will be terminated and they would chase us for the full outstanding amount.

I contacted Welcome and agreed a repayment plan at a reduced rate and nothing else was mentioned about the Default Notice.

I now want to voluntarily terminate the agreement to hand the car back to them. Welcome now tell me that because they served a Default Notice:

a) I can no longer voluntarily terminate, I can only voluntarily surrender
b) If I do, they will take the car and sell it at auction
c) The proceeds of sale will be deducted from the outstanding amount
d) I will still have to pay the balance although they would consider a staggered shortening of the outstanding amount (they have already agreed on a loan agreement I have with them to write off the balance if I pay a set sum for a set period of time)

As far as I am aware, I made contact with them and agreed a repayment plan which I am sticking to. Does that mean the Default Notice no longer has any effect and are Welcome playing by the book in saying that I have no entitlement to voluntarily terminate?

The upside to terminating rather than surrendering means that I would pay less to Welcome at the end of the day - is this just a ploy by Welcome to squeeze more money out of me?

Thanks,
Aleks

[sequenci]

If the default notice was remedied and you have kept to the original agreement then you could still VT under s99 of the CCA. If your repayment proposal is for payments which are different to the original payments required it could mean that you have not stuck to the agreement and there has been a lawful default, this would mean that your right under s99 would have been lost. have you checked your credit file?

if you have defaulted and wish to change the amount you pay you could consider applying for a time order.

National Debtline England & Wales | Debt Advice | Factsheet 06 Time Orders

[Gaston Grimsdyke]

You can terminate the agreement at any time, provided they haven't terminated already. The fact you made an arrangement does not invalidate, cancel, or otherwise negate the effect of the Default Notice. However, you have to check the wording of the Notice to see if termination happens automatically when you fail to remedy the default, or whether it requires some other act (like Welcome notifying you in writing of termination). You should also check the termination clause of the terms and conditions of the HP agreement to see whether they have to terminate in writing. If either the Default Notice or general terms and conditions require them to terminate in writing, and they haven't, then you still have the right to VT - Welcome of course do not want you to VT because they will lose money.

[DNA]

I've posted another lengthy message about Welcome in the hope that someone can help - I've asked time and again for the copy of the agreement I signed in 2003 but they've not sent one to me. I also have some doubt as to whether I should be paying for payment protection insurance I took out originally, etc - see my other post.

[StoneLaughter]

If you've defaulted under the original agreement then that agreement is no longer in force. The new agreement, currently in force, is the one in which you agreed to pay the balance under a reduced payment scheme.

[DNA]

The situation is that I signed an agreement in July 2002 which was superceded by the April 2003 agreement. It is the April 2003 agreement that I defaulted on; however, by contacting Welcome and agreeing a reduced payment scheme and continuing to get statements of account and them referring to the agreement, does not that suggest that the agreement is still in force. I have only been told once over the telephone that "the agreement is terminated" and I have never received a copy of the signed April 2003 agreement despite asking several times in writing.

[Gaston Grimsdyke]

Make a request under section 77 of the Consumer Credit Act 1974, and don't forget to pay the statutory fee of £1. They will be obliged to give you a copy of the executed agreement and a statement of payments made. If they do not comply within 12 working days, they will be in breach of the Act and will be unable to enforce the agreement (until they do comply). If after a month they are still in breach, they commit a criminal offence.

[rubber duck]

Originally Posted by DNA

Hi, I need some advice from someone in the know because I've not got a clue!

I am party to an HP agreement in joint names with Welcome Finance secured on a car we purchased in 2002. We had financial difficulties in the past and Welcome served us with a Default Notice on 5 April 2006 basically saying pay the arrears or come to an arrangement within 10 days or the agreement will be terminated and they would chase us for the full outstanding amount.

I contacted Welcome and agreed a repayment plan at a reduced rate and nothing else was mentioned about the Default Notice.

I now want to voluntarily terminate the agreement to hand the car back to them. Welcome now tell me that because they served a Default Notice:

a) I can no longer voluntarily terminate, I can only voluntarily surrender
b) If I do, they will take the car and sell it at auction
c) The proceeds of sale will be deducted from the outstanding amount
d) I will still have to pay the balance although they would consider a staggered shortening of the outstanding amount (they have already agreed on a loan agreement I have with them to write off the balance if I pay a set sum for a set period of time)

As far as I am aware, I made contact with them and agreed a repayment plan which I am sticking to. Does that mean the Default Notice no longer has any effect and are Welcome playing by the book in saying that I have no entitlement to voluntarily terminate?

The upside to terminating rather than surrendering means that I would pay less to Welcome at the end of the day - is this just a ploy by Welcome to squeeze more money out of me?

Thanks,
Aleks

Hi there..
i may be able to help with this.
although you did not say whether more than 1/2 the loan amount was paid or not,but remember if more than half is paid you can give the car back and voluntarily.But they like making a fuss ;so tell them this; "i am voluntarily giving this car back,or stop paying now and i shall see you in court!,unless you allow me to voluntarily terminate .i also want you to clear the default , as i never received the default letter anyway as it should have been sent
registered post,clearly you did not and i never received the notice therefore i was not even aware that you sent me a default note.so it is up to you take it or leave it..
believe me it works!you dictate the terms ,not them .!!
good luck.
r.d

[rubber duck]

Originally Posted by DNA

I've posted another lengthy message about Welcome in the hope that someone can help - I've asked time and again for the copy of the agreement I signed in 2003 but they've not sent one to me. I also have some doubt as to whether I should be paying for payment protection insurance I took out originally, etc - see my other post.

hi there..
you can cancel your PPI immediately..and do it now as it`s absolutely useless anyway .just another way for the WF to rob you blind!

[andy2708]

Hi,
I am in exactly the same boat as yourself. Except that my account was passed over to their Collections Department who agreed a new repayment plan. But, they haven’t drawn up a new contract yet, and this was agreed back in February. Not sure where I stand, I could ask them for a copy of the signed agreement, which they will by law have to supply. But I know that will be impossible because I haven’t signed one. So I should be able to get them on some kind of technicality.

Anyway, back to your question. The default will still stand as you haven’t paid off the balance.To voluntarily terminate you have had to have paid off the amount stated on your contract, under the termination section, have you done so? Your best bet would be to contact Consumer Direct or your local Trading standards office, they will be able to help you out.

[powelll]

Just a quick note relating to Welcome - Many of their agreements have actually been found to be unenforceable due to the way that the charge for credit is stated on the agreement. It all hinges on whether the PPI was optional at point of sale or whether you were told you HAD TO have it & wouldn't get the HP otherwise.

If the PPI shows as optional on the agreement but you were told that it wasn't then the charge for credit will probably be stated incorrectly meaning that the agreement is totally unenforceable.

If this may be the case you really need proper advice via Trading Standards or CAB...