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Hi - I have literally just taken a loan out from WF for a car 2 weeks ago. The salesman told me that with PPI, Mechanical Breakdown Insurance & Shortfall Extra Insurance my monthly payments would be £197.28. I said that I did not need PPI or the Shortfall Insurance and he said that I might as well take it as they would just hike the price of the goods (car) and my payments would only go down by approx. £5 pm.
I have 30 days in which to cancel this insurance and am now wondering, if I have a signed agreement with WF stating the price of the goods and the insurances separately - can they rewrite the agreement charging more for the car if I cancel the insurance ? It does state at the bottom of the page 'Each of the policies may be cancelled in the first 30 days with full refund of premium. If this was requested we would need to rewrite your loan agreement to adjust the amount bo...' - I don't know what the end part says because it ran out of page to print on !
My other question is, when I initially was looking to buy a car from them their website states that they give you £1000 px - I received the paperwork and we have the price of the car & extras under 'Total Ordered Vehicle Price' then it states 'Less Part Exchange Allowance 1.00' and they have deducted £1 !! My husband rang up and they gave him such rubbish that he was totally flummoxed as to how to explain it to me. Something is not right about the PX allowance but I don't know how to go about getting something done about it....
Any help would be greatly appreciated - Kind regards, Sharon
Re: Welcome Finance - PPI Agreement - Please Help !
Hi there you managed to get it then, £2754.00 for insurances they know how to make a buck eh.
If you wanted these insurances you could get them yourself at a much cheaper cost, i wouldnt take them.
The p/x at £1.00......you were thinking it should be £1000, if you are unsure of this then ask them again quoting what the Internet says, even get it in writing if it helps.
Re: Welcome Finance - PPI Agreement - Please Help !
Originally Posted by shalzak
Hi - I have literally just taken a loan out from WF for a car 2 weeks ago. The salesman told me that with PPI, Mechanical Breakdown Insurance & Shortfall Extra Insurance my monthly payments would be £197.28. I said that I did not need PPI or the Shortfall Insurance and he said that I might as well take it as they would just hike the price of the goods (car) and my payments would only go down by approx. £5 pm.
I have 30 days in which to cancel this insurance and am now wondering, if I have a signed agreement with WF stating the price of the goods and the insurances separately - can they rewrite the agreement charging more for the car if I cancel the insurance ? It does state at the bottom of the page 'Each of the policies may be cancelled in the first 30 days with full refund of premium. If this was requested we would need to rewrite your loan agreement to adjust the amount bo...' - I don't know what the end part says because it ran out of page to print on !
My other question is, when I initially was looking to buy a car from them their website states that they give you £1000 px - I received the paperwork and we have the price of the car & extras under 'Total Ordered Vehicle Price' then it states 'Less Part Exchange Allowance 1.00' and they have deducted £1 !! My husband rang up and they gave him such rubbish that he was totally flummoxed as to how to explain it to me. Something is not right about the PX allowance but I don't know how to go about getting something done about it....
Any help would be greatly appreciated - Kind regards, Sharon
Hello Sharon,
Just found your thread. I agree with Bigmac I would not want those expensive insurances added to the loan. They are going to cost you £52.38 a month, and as bigmac has stated if you want insurances you can buy them at a fraction of the price elswhere.
You do have cancellation rights, and where are the getting that it would reduce your payment by £5??????
Please read this link from the fsa, and there is a lot more information regarding ppi on this site.
They cannot make you take out another loan or a new agreement at a higher interest rate so do not let them. and if they insist I would be reporting them to the FSA
Do all correspondence by letter, because as you have found they can say anything to you, totally confuse you and make things complicated. They can also deny they have said anything and you will have no proof, unless you record the conversation.
If you feel that there is something wrong with the part-exchange write to them and ask for a breakdown and explanation of this, you will have their letter as evidence if there is a problem.
Good luck and if you need help just ask
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
Re: Welcome Finance - PPI Agreement - Please Help !
Thank you for your advice - I am going to cancel the insurances tomorrow and also ask them to send a letter giving a reason in writing for the px allowance only showing as 1.00. I'll post the outcome (if I get an answer !)
Re: Welcome Finance - PPI Agreement - Please Help !
The £1 deposit is probably them 'writing back' the p/ex value. This is common practice in the motor trade, in order to save on VAT.
Whem minimum part exchange offers are made of (say) £1000, they have simply added that to their asking price in order to guard against having to take in a £50 banger. What they end up doing is then reducing the asking price by £999 and showing £1 for your part exchange. Confusing, but legal, although it would seem it hasn't been explained to you. Did they actually knock any money off the screen price?
Re: Welcome Finance - PPI Agreement - Please Help !
Did they actually knock any money off the screen price?
Thats what it looks like but surely the OP would have seen the Price of the car fall by that amount advertised on the windscreen.
Will know more when OP speaks to salesman.
Re: Welcome Finance - PPI Agreement - Please Help !
Hi again - Just reading through that P/Ex explanation - no wonder other half was confused.
Just to let you know, we were never quoted a price until the agreement was placed in front of us. He asked us how much we could afford each month, what sort of car we were looking for and then disappeared upstairs and came down with a set of keys which he informed us was within our price range (we said that we were looking at around £150-£200 pm) but not once did he ever mention the purchase price...
Don't dress it up... how naive do you think I've been ?!!! Having never gone through this process before, I thought that this was normal... seems not !
Re: Welcome Finance - PPI Agreement - Please Help !
I'll put it another way.....according to your agreement the cash price of the car was £5580. Was there any indication...for example from the screen price of the car....that it was originally priced at around £1000 more than that?
Did either of you actually ask for the £1000 minimum p/ex as advertised?
I really don't know why motor dealers make these things so confusing because I'm convinced they would actually sell more and make more profit if they actually explained everything properly.
Re: Welcome Finance - PPI Agreement - Please Help !
Sorry for late late late reply - I've only just checked back because I've only just had an answer from Welcome regarding the insurances !
They wanted the 1st payment of £197ish on the 24th of this month (which includes the insurances) - we rang and said that we had cancelled and were awaiting the new monthly repayment figure. They replied that we would have to pay the first month with the insurances as they hadn't received the new amount through yet ! We said no, so they advised us to cancel the DD and then it would be set up with the new amount (whatever that may be?).
Today, we received a menacing answerphone message basically saying that we had no right to cancel the DD because we signed to pay that amount on the 15th of last month - she then went on to say that we were committing 'intentional fraud' because we had signed to to say that we could pay that amount and that although the cancellation of the insurances was going through, it takes time. Furthermore, she said she would personally take legal action against us as we had made no payments on the agreement and then reiterated the 'intentional fraud'. Aggressive is an understatement ! She finished off saying that if we didn't phone back immediately we didn't understand the implications of not doing so ?
I would really appreciate your comments on this as, understandably, I am appalled that Welcome can operate in this manner.
(As regards to the p/ex question previous, neither of us questioned the £1000 because as I stated previously, quite naively we didn't actually ask the cost of the car...).
Re: Welcome Finance - PPI Agreement - Please Help !
Sharon first things first dont speak to them on the phone, if they call remind them of this. Keep all communication by post, it is your right to cancel the insurance just as it is to cancel ANY direct debit, they are not the best to deal with to be honest and to say intentional fraud just backs that up, they have to recalculate your payments and are most probably upset as you have cancelled the insurance which is where their commission mostly comes from.
Re: Welcome Finance - PPI Agreement - Please Help !
Hello Sharon,
How do these people sleep at night. I wonder, I have a great belief that what goes around comes around, so maybe have confidence that she will get her come-up-ence at some time in her life.
The sheer devilment in me would make it a mission to get her name and write in a complaint about her rude and agressive manner, not that welcome would take notice, that probably why they gave her the job. They would have to respond though and hopefully if she was to receive any commission, ha ha she won't.
Bigmac is correct in telling you to only communicate with these bullies in writing only, Set out your proposals regarding waiting for the payments to be re-calculated and that you have every intention of paying them. And that you are appauled by their statement of intentional fraud. Is that not what they tried to do to you with the PPI. :o They make me so mad
If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW
Re: Welcome Finance - PPI Agreement - Please Help !
Hi there,
My other half works for a car dealership, not welcome and the book price of the vehicle we would be happy to obtain for you so you know if you could have got a better deal and what you should have paid. If within the 30 days you can still do something. Post back the model of the car and the year and engine size and my partner will reply.
Intentional Fraud??? That would have to be a joke of some sort as you have not intentionally or unintentionally committed any Fraud. You have not made false representation so please ignore the claims made against you.
If, you are cancelling the insurance, then you are as my partner has said under legal obligation to make the first payment of what would be the actual price of the car. So as your agreement states the price is £5,000 or so times it by the monthly interest rate and send that only in.
As the PPI and insurances are seperate to the main loan document and you were within the 30 days for cancellation, the price of the vehicle cannot be changed. They will just calculate what is owed on the price of the vehicle for repayments.
They need a kick for making threats! Just make sure you make the first repayment on time, without the insurance amount added or you will be in default and as my partner said, it can take up to 60 days for the changes.
Re: Welcome Finance - PPI Agreement - Please Help !
Hi, thanks all for your replies - I am really perplexed as to what to do. My gut feeling knows that Welcome are in the wrong but my payment is due on the 24th of this month, so it would've come out of my bank a/c on Monday, and my husband has just said that if we don't pay then there is a default ??
I feel that, logically, if I've cancelled within the 30 day 'cooling off' period then they are legally obliged to re-set the amount that I should be paying, but ONLY on the amount of credit given for the goods (in this case £5,559.00).
They did say in the original conversation with my husband regarding the insurances that we should pay the figure of £197ish and then they would refund it by spreading it over the rest of the payments (i.e. we pay the £57 and they refund it by deducting approx £1.21 each month thereafter, rather than just returning that one month's figure).
I'm really annoyed as I feel out of my depth here, which is really unsettling for me ! I already feel that Welcome have me over a barrel, which is soul-destroying. I would be really, really grateful if anyone could indicate whether I should be making a debit card payment on Monday (the due date) over the phone minus the insurance amount - or whether I should pay the full amount taking into account the tactics of the company. The last thing I want to do is incur charges from the outset !!
Re: Welcome Finance - PPI Agreement - Please Help !
Sharon if you know the amout due without the insurances then pay that only, if you dont know and havent been told as yet then pay the full amount you were due to, I would request the overpaymet to be returned to you by cheque rather than offsettig future payments.
Welcome Finance - PPI Agreement - Please Help !
, Mechanical Breakdown
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Originally Posted by shalzak
and hopefully if she was to receive any commission, ha ha she won't.
They make me so mad
