Thread: Have I been missold insurance from welcome?

Good afternoon everyone.

Back in 2006 my husband and I took out a joint loan for £1500.
The focus of the complaint was regarding missold Life care 24and accident plans-the Customer Relations Centre advised that these were part of Payment protection insurance. We sent them this letter:


We were never advised and refer to our original contract that these could be cancelled in the first 30 days of policy. The Insurances sold to us were not defined nor explained and were not "optional" as laid out in the said agreement. We were informed that the Insurance was part and parcel of having a loan. The WF agent misrepresented the fact that the insurances were compulsory. The forms had been pre-ticked, and therefore this product was not optional to us.

Welcome never supplied any documentation regarding the policies or whom it is with. I was also therefore unaware of any cancellation rights I may have had or of the policies suitability. Again on the above-mentioned Statement of Needs sent out on the 17.1.09 it stated that the policy could have been cancelled but without having that form and only our credit agreement how would we have known.

The insurances have been added to only one person on the account. This is a joint account therefore we have not enjoyed the benefits and peace of mind. We were not asked whether we already had any existing insurance or employer benefits that would cover our repayments, which we do have! If this is Joint account why was Mrs x allowed to refuse the insurance and Mr x not! Both names on the account would be liable to pay should anything have happened. Taking into account Mr x background medical history MR x may not have been covered by most of the policies clauses. Again I was not asked if I had any medical conditions!!!


I was given the option to include insurances on my contract when I bought my car. When I stated that I had employer and private insurance that would cover me for all eventualities this expensive insurance was not added. Welcome have added these insurances (£355) and then charged me further interest on the premium on top of the interest for the loan (£297.68) This again was only disclosed on the 17.1.09.Welcome have deceptively charged us £652.88 for the insurances.

Having not been charged the acceptance fee on the car agreement we have been looking into our contract. This is supposed to be for credit counselling which we have not needed. Initially thought we were paying £75 for this, the Breakdown suggests we were actually charged £137.88. Therefore charged further interest on the premiums on top of the interest

We formally asked welcome to cancel our insurances. The final response stated that we have not been missold. Could only cancel within first 30 days and they have enclosed information supporting their position.

This information was not enclosed. We have now had two final responses with them maintaining their position. When I contacted them after the last letter, a different compliance officer said that it was ok for only one person to be covered on a joint loan. Said the insurance was with direct group and if we could prove that we did have existing insurance prior to application ( which we did) then they would have another look. Further information from us has never been requested from us until I rang up following recent letter.

Also, noticed like some other threads that capitalisation/interest is being applied montly even two times in a month!!

Phoned direct group and they informed us that lifecare is over 60 months and accident over 36. Agent thought it was strange that lifecare continued for another 24 months after loan finished.

Just wondering what people think of this and what the next steps maybe?

Thanks in advance?

Thanks for the replies so far! Did send them a follow up letter to first final response indicating action, which is why I got the second final response letter so quickly- still maintaining their position.

What should happen next- fos?

The fos have upheld a few Welcome cases, it's just that there is a massive backlog so it may take some time.