Thread: Peter534 V's Welcome Finance

Hi to you all.

With all the success i have had with reclaiming bank charges, i thought i'd see if i could get any PPI back too.

I sent the following letter off to Welcome Finance Last week:

Complaints Department
Welcome Finance
Kingston House
Centre 27 Business Park
Woodhead Road
Birstall
Batley
WF17 9TD

My Ref: Welcome PPI

24th October 2007

Dear Sir or Madam,

Re: Complaint and request for return of Payment Protection Insurance (PPI) premium and Personal Accident Insurance (PAI) plus contractual interest.

Agreement No: XXXXXXX

On the 09th October 2003 I took out an unsecured loan with you company of £1000.
When I took it out, I signed up for Payment Protection Insurance (PPI) along with Personal Accident Insurance (PAI). At the time I was experiencing some short term financial difficulties and I was told that I could not have the loan unless I agreed to take the insurance.

No claim was ever made under these policies.

I now realize following the recent OFT and FSA investigations, that you mis-sold me the insurance policies, which I did not want and did not need. I believe I signed up for the insurance under economic duress and that your actions were unconscionable.

I am writing to ask you to refund the premiums paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity.

Your responsibilities
I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

I am frankly shocked that you have operated my loan account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

No attempt was made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed if I really needed it at all. No inquiry was made as to whether I had pre-existing insurance for accident, illness or unemployment, nor were any rights to cancel these policies explained. I believe you manifestly failed in your fiduciary responsibilities, your duty of care.

Secondly, I understand under the Consumer Credit Acts and following a House of Lords judgment that you are not allowed to make a loan conditional on taking PPI unless you include the costs of PPI as part of the charge for credit and not the credit itself.

You did not do this. You added it to the total for credit and then charged me further interest on the premium on top of the interest for the loan. This is unacceptable

Finally I believe insurance contracts are contracts uberrimae fidei (contracts of the utmost good faith) which imposes on you a “duty of disclosure of all material facts because one party is in a strong position to know the truth.” Inter alia, I believe that you should have disclosed to me that the type of policies you sold me, a single payment premium, did not give a pro-rata refund in event of early settlement. I believe you should have made it clear to me that the policies generated large profits for you. You failed to do this. I believe that you have also therefore failed in your duty of disclosure. Your failure to disclose is misrepresentation at common law.

What I require

Your concealment of the act of mis-selling has prevented me from asserting my right until now. I believe that there are strong grounds for action against you under common law, statute and consumer regulations.

The cost of the original premiums were:

£184.98 (PPI)
£200.00 (PAI) Total: £384.98

This was debited from my account on 09th October 2003.

You refunded me £23.72 on 05th March 2004 following my early settlement of the loan, reflecting actual premium charges of £361.26.

I require the £361.26 premium charges to be refunded with interest from 05th March 2004 to date of £1,023.89, totalling £1,385.15

I also require interest on £384.98 from 09th October 2003 to 05th March 2004 which is £121.60

My total claim therefore, is £1,506.75

I have calculated interest at 77.9% APR, which was your APR at the time I took out the loan, reflecting the principal of mutuality and reciprocity. I am sure you will advise me if the APR at the time was different.

My targets to resolve this matter

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive payment.

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that this time frame is sufficient for a large company such as yours with its dedicated staff and departments. After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.

Yours faithfully

xxxxxxxxxxxx

Could anyone tell me if they know of anyone else who has made a claim and charged the issuing company interest reflecting the principal of mutuality and reciprocity as high as 77.9% APR, which i have asked for, successfully?

Fingers crossed!

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Recieved a response dated 29th October 2007 from:

Rowena Ward (Compliance Services)

She Wrote:

"We are currently conducting an investigation of the points you have raised in your letter and will contact you again with the results."

Will do,

would be nice to get all that interest back at 77.9%.

Hi peter

We are doing the same, our loan was taken out with dial 4 aloan, bought out with welcome finance.
The loan was then passed off to GE Money who have advised that our complaint is with the dial 4 aloan.

So letters gone off, received one from rowena ward and now being handled with ricky essex.
Spoke with him last week as he gave me his mobile number in the letter and hes asked for 7 days to deal with it.
He has until friday and then ill be back on as i feel im being messed about.
Our claim is for 2340.62
Loan was taken out 2003 and repaid in 2005 inc the PPI

Ill let you know what happens next - hopefully good new

I am about to write my letter before action. Does anyone know if im using the correct timescale?

I know that you give the banks 2 weeks, then afurther two weeks with your letter before action when reclaiming bank charges, however, i'm sure i have read somewhere that they have 6 - 8 weeks to investigate PPI.

Can anyone help?

I fully intend to.

I always send my letters by recorded delivery and would never sign a peice of paper produced by Welcome finance again, however, i am still unsure if i am to post my lba today.

I would be quite happy to, and am more than happy to take them to court.

I just dont want to look stupid when someone says that i should have given them 8 weeks to investigate.

total 28 days is the norm

its 40 days if you have asked for an SAR

dont sign personel correspondents

Thank you, will post my lba when i'm done!

personel correspondents?

take it from me, never sign personel correspondents

not that they would do anything illegal with your signature

Do you mean the letters i send to them?

Does anyone know?

I am constructing my letter before action and would like to include the following paragraph, which is used when reclaiming bank charges:

Furthermore, I shall submit a Consumer Credit Act 1974 complaint to the OFT upon the basis that you have failed to comply with the OFT's direction of 5 April 2006 and are therefore not a 'fit and proper person' to hold a consumer credit licence under the 1974 Act. If you do not understand what this means then seek advice from your legal department.

I think it is, but could someone confirm that it is relevent in PPI cases.

many appologies to the forum
as you can see part of my last comment was edited, potentional libellous comment. i have the upmost respect to this forum with my dealings with welcome finance,without this forum i would be at a loss. if companies would only respect the law forums like this would not be needed.
once again many appologies and thank you for your support

yes, i still have the original, but am wondering wether i should have signed my preliminary letter after reading postggi's comment. But then again, they have my signature on the original agreement anyway.