Me vs Welcome PPI (struggling to work out PPI & Interest)

[TheAnalyst]

Hi all,

needing some help as this whole PPI/APR thing has me very confused.

 

 

On 07/07/2003 I took out a Welcome loan for £2451.90 (paid off some of an old loan with the new one)

 

Loan: £2451.90

PPI: £780.70 (told my loan would be refused if I never took it)

Total: £3232.60

APR: 45.1%

Period: 36 Months

Repayments: £151.50

 

In total I mate 19 payments of £151.50 then never paid anything after that, they charged me in total £450 for failed DD's, phonecalls and visits to my home. I now STILL owe them £3560

 

 

When I took out the loan I questioned the PPI but was told that if I never took it then I would not be accepted for the loan as my credit history was so bad ... I signed the form as I needed the money and I have a copy of the agreement here which actually states "optional payment protection" and "You understand that payment protection is optional and not a condition of this loan"

 

 

Do I have any grounds to claim or will they laugh at me and say tough you signed the form so you have to pay it? If I do have grounds can someone explain how on earth I go about working out what I can claim back and how the APR works?

 

 

Thanks for any help!

 

 

.

[itsmeandonlyme]

Hello The Analyst,

 

 

Total to claim £1672.97+ £450( it's up to you if you want to add an interest on those charges)...The amount of monthly payments should be reduse to £136.60 after you've cancel you PPI with WF

 

You have grounds to claim if it was mis-sold..i would suggest you to submit complaint to FSA and explain them the way you were mis-sold PPI...copy of mine you can see in my thread...

I also would need to see the copy of the agreement..if you use photobucket you can pm the copy...lets see if its properly executed!!

 

 

kind regards,

 

 

itsme

[TheAnalyst]

Thanks so much for the reply itsme!

 

I'll start from the start, I CCA'd Welcome Finefarce and they defaulted on the request in as much as they did not reply within the allowed timeframes so I wrote to them again explaining this and I got this a reply from Mr. S @ Welcome apologising and including statement of account, signed and executed agreement but also stating that their default is "henceforth discontinued" whatever that means (In my reply informing of breached CCA I stated that I wanted the default removed from my credit file, it has not been yet!!)

 

 

Agreement:

 

 

Statements of account:

 

 

 

 

 

 

You can see from the statements that my payments were regular until Feb 05 when I got into some real financial hard times and then after that only a few payments of £151 and a few of £80 were made but intotal (accounting for the returned DD's) I figure I made 17 payments of £151, one of £80 and one of £54 (sorry for my earlier miscalculation)

 

So its not really clear to me at all how to work any of it out, APR confuses me at the best of times! Also I think I should be able to claim APR back on all the £450 of charges?

 

What do you think?

 

 

[itsmeandonlyme]

Hi again,

 

 

Your agreement is not properly executed, so stop paying them if you still are...

 

Re your charges: send Kieran Scothern this:

 

I am of the opinion the law is clear on liquidated damages and that, irrespective of your belief to the contrary and regardless of any agreement that I may have signed, the payment of excessive damages will be interpreted as a penalty and therefore the charges you imposed will be unenforceable and should I be forced to litigate, judgement granted in my favour.

 

The fact that your fees do not differ significantly from those charged by other companies operating within the Financial Services industry is entirely redundant however I am most interested in your comment regarding my responsibility for those fees. Given your clear and unambiguous statement that these fees represent the costs to your business and that you have incurred them as a result of my breaching our contract I am sure you will be happy to demonstrate this by letting me have a full breakdown of the costs to which you have been put as a result of my breaches in order to reassure me that your penalties really do reflect your costs.

 

Charges are not legally enforceable if they are penalties. Penalty clauses in contracts in English (and Scottish) law for breach of contract are not legal if the penalty exceeds the actual cost of the breach of either party. The law relating to penalties has been established through case law. The cases date back to the nineteenth century and the courts have been consistent in the way that they have ruled on penalty clauses

 

I am mildly amused by your penultimate paragraph and your apparent misunderstanding of contract law and seemingly deliberate attempt to complicate what is a straightforward issue.

 

 

 

Your agreement is not properly executed accordinally to Consumer Credit Act 1974 as it doesn't have a total amount to pay. What they put is amount they've given you but not the total amount to pay 36x 151= £5436

 

The first step is to send a complaint to FSA and same time send the letter with part above, advising WF that you made a complaint to FSA, and you are aware, about loads of other complaing to FSA about misleading and misseling..You also aware that you agreement is not properly executed as it doen't have some of the prescribed terms accordinatly to CCA 1974.

You require refund of PPI and added interest and refund of your charges in form of cheque...

 

I would also advise you to read this thread: Consumer Credit Act Agreements, and this CCA Agreements (Mark II) PLUS any other topic , and Consumer Credit Act - Resources Workshop ))

 

 

and update me on your progress!!!!

 

But do submit complaint to FSA!!!

 

Regards,

 

 

itsme

[TheAnalyst]

Thanks again itsme, I'll have a good read through all of that in work tomorrow.

 

One thing that I'll say is that the aggreement does mention that "no account has been taken in any variation of interest" would this not be a good argument for them against me stating "there's no total amount to pay on the agreement therefore its not properly executed" if my interest rate can vary (although I dont see how it possibly can, its not a morgage!!) then they could not really put a total amount on there?

 

Also, do you know of a spreadsheet that I can use to work out exact intrest based on the amounts and dates of my payments, I think I'll need one as my payments at times were not regular, you managed to work out an amount above, any chance you could let me know how you came to that figure so I can work mine out accurately?

 

Exactly what am I complaining to the FSA about? The fact that I was miss sold the PPI way back when they said "you must take the PPI or your loan wont be accepted? Wont the FSA just say well you signed the waiver stating that it was optional so tough cookies?

 

Thanks, you really have been loads of help so far!

 

 

 

I think I'm going to have to SAR them for my old loan that I settled with them before I got this one too as it also had PPI on it and I was paying that every month for 2 years!

[jubaxt]

hi-i'm dealing with the unwelcome lot-just realised my agreement has no amount payable-ie36x 196-they added ppi when i was a casual worker so am also claiming it back-have asked them to take off whats been added for ppi then.take off the payments i have made.i have then added cci to the ppi premiums and charges (done them both seperately)-should reduce my balance from 3300 down to approx 1500-good luck