MM V's Welcome Finance

[moneymania]

Hi all, some great information and advice on here. May I have a little advice on our issue with Welcome Finance.

We took out a secured loan with welcome in Feb 05. In July 06 our property was repossessed and has now been sold on 06 Jan 07. We are now in council accomodation.
My query is the PPI and the Indemity Insurance that we were adivised to take by welcome to insure we got the loan.
The PPI was added to the ' amount of credit' and we are paying 18%APR (1.2% per month?. what is says on the agreement). We have recieved the Data Protection Act request information and it contains a copy of the original agreement. A few issue on the agreement I'd like advise on also but I would like to deal with PPI first. I thought they were not alowed to add the PPI the 'amount of loan',

Secondly the Indemity insurance. In the T&C's it states that it covers the eventuality that ' if welcome have to enforce the security'. Now forgive me if I'm wrong but for welcome to enforce the security (which reading through many posts on here, they have never done) they would need our 1st mortgagees permission. I doubt very much that they would grant permission for welcome to for security for a £10k secured loan against a mortgage of £135k with approx £25k equity.

Now surely this indemity insurance is a con and a complete waste.
What are the chances of re-claiming the PPI and Indemity insurance?

[rippedoffagain]

Who repossed your property?

[moneymania]

Platform. our main mortgage was with them.
Welcome had the second charge.

[rippedoffagain]

Do you know what the house sold for yet?

Did it cover the mortgage outstanding to Platform or is there a shortfall?

Did it cover the balance outstanding to Welcome or do you still owe them?

[moneymania]

Hi, sorry didn't put all the info in first post, rather a lot of it.
I had to finish work begining of 06 due to personal reasons, but we knew the consiquences, so we put the house on the market for £170k. By july we hadn't sold and platform repossessed after getting court order.
They put on market for £160k and sold this month for £150k .
Once all cost's have been taken out, as far as I'm aware there was enough for the 1st mortgage but non for Welcome. But the way Platform sold and for how little it went for is another issue. Cuz we had ' higher lending charge' with the mortgage, they weren't botherd how much it went for as they were covered for any short fall anyway...more .

So in answer to your Q's
£150k
Covered 1st Mortgage ( just awaiting conformation)
Apparently we still owe Welcome.( although how much, we don't exactly know, as when we have had settlement figure's in the past, the amount just increases ?)

[rippedoffagain]

Sorry to hear of your circumstances!

No doubt when the dust settles Welcome will be trying to recover their money. I think they will try and pressure you into extending loans with them, sort of OK pay us what we want for the rest of your life.

You have not given details of your family circumstances, ie have you children at home?

I think you need to relax untill you know what Welcome have to say.

[moneymania]

I do try to take one at a time until we know the full outcome from platform. Welcome do phone us evry now and then for payment but I do tell them I cannot do anything until we have the final statement from platform.
Also, I'm not sure the agreement follows the guidlines of the CCA 1974 either.
They have added the PPI to anount of loan, there is now ' total amount payable' on the agreement, we had no unexecutable copy of the agreement sent to us prior to signing and the one we signed (on the 31/02/06) was then signed by them on the 7/2/06. I though they had to wait for 7 CLEAR days before they signed. They signed on the 7th day.

[rippedoffagain]

Secondly the Indemity insurance. In the T&C's it states that it covers the eventuality that ' if welcome have to enforce the security'. Now forgive me if I'm wrong but for welcome to enforce the security (which reading through many posts on here, they have never done) they would need our 1st mortgagees permission. I doubt very much that they would grant permission for welcome to for security for a £10k secured loan against a mortgage of £135k with approx £25k equity.

Now surely this indemity insurance is a con and a complete waste.
What are the chances of re-claiming the PPI and Indemity insurance?

Is this insurance meant to indemnify Welcome if you default, and they subsequently enforce the security?

[moneymania]

Yes. It's to cover them for any short fall, but it only covers them if they force the security. As it was platform that repossessed, it does cover them.
Waste of money if you ask me, and we had to pay for it.

[rippedoffagain]

Hi moneymania

I am not realy sure what you are trying to achieve with Welcome, are you trying to reduce whatever outstanding debt they claim? If you borrowed £10,000 from them, I would guess that with all the extras they add on at the outset, they will be claiming significantely more now.

Are you in a position to borrow from another source?

[moneymania]

Originally Posted by rippedoffagain

Hi moneymania

I am not realy sure what you are trying to achieve with Welcome, are you trying to reduce whatever outstanding debt they claim? If you borrowed £10,000 from them, I would guess that with all the extras they add on at the outset, they will be claiming significantely more now.

Are you in a position to borrow from another source?

I want to ensure they are acting within the law. If they are not then i will fight them all the way, to get this reduced or written off.

There are several issue about the agreement that don't concur with the CCA, as listed in previous post. Just wondered where i stood as regards this.
Need help with finances, as this past year has been pure hell.

[rippedoffagain]

Do you have a copy of the agreement, can you list their charges, rates, extras, etc?

I know there has been controversy over PPI, but I have not had an issue with this, and so have not researched it.

[moneymania]

They have sent me a copy of the executed agreement.
Loan details as follows:
(a) Amount of Loan - £10000
(h) Optional PPI - £1620.37
(j) Amount of credit for PPI - £1620.37

(i) Acceptance Fee - £235.00
(m) Mortage Indemnity - £1100.00
(n) Total charges other than interest - £1335.00 (i+m)

Total Amount of credit (a+j) - £11620.37
Total amount of Loan (k+n) - £12955.37

Interest rate - 1.2% per month
APR 18%

Amount of each monthly payment - £176.03
Number of Monthly payments - 180 months.

That's all the figures that are on the agreement. The PPI, I have no details on. Bet it only runs for 5 years. wate of money, never wanted it never gonna use it. Indemnity, waste of money, there's no way on this earth that welcome could force the security on our property, miss-sold.

[rippedoffagain]

The APR looks odd, 1.2% per month sounds great, but usually it is charged on the outstanding balance each month. In this case they are chargeing a flat rate of 14.4% per anum. Normaly an APR is nearly twice the flat rate. I will check for you.

[moneymania]

thank you sooo much

[rippedoffagain]

No sorry the APR looks OK.

[rippedoffagain]

Are your payments up to date?

[moneymania]

They were up till Nov 2006.The sale of our property was due to go through on Dec 6th but fell through. and as we had no property to secure the loan we decided not to pay them until we found out all the financial figures from platform. the house finally went through on 6th Jan but waiting for final statement from platform. Although I have been informed by them over the phone that there is no money left over for the 2nd charge.