hallelujah! Bebo finally gets a straight answer!! - Sorry beyondhope can you explain??

 

Its very easy to think you have cracked how the agreements are calculated and that they are off but as fos also showed me this isnt always the case and a feeling of being lead down the garden path soon kicks in!

 

for arguement for people reading what exactly are the 'prescribed' and 'required' terms for newbies reading?

many thanks!

many thanks!

This post here:

Here is the response that welcome supplied the fos, This explains in black and white what Ive already told you. at the end of the day its down to you which route you take your case. I would however advise you to look at the letter I recieved this is the facts on how welcome work agreements out also make you fully understand what myself and Steven are telling you. I think failing this an Accountant will be able to explain how you agreement is worked out.

I will again say how frustrated I was when I recieved this letter because I honestly believe it isnt clear enough for a lay person to understand and it has took me a while to grasp. I wish you the best of luck with your case.

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CONSUMER CREDIT (AGREEMENTS) REGS 1983:

Schedule 1 is headed “INFORMATION TO BE CONTAINED IN DOCUMENTS EMBODYING REGULATED CONSUMER CREDIT AGREEMENTS OTHER THAN MODIFYING AGREEMENTS”.

(PAGE 35 OF 50) Schedule 6 is headed “PRESCRIBED TERMS FOR THE PURPOSES OF SECTIONS 61(1)(A) AND127(3)OF THE CONSUMER CREDIT ACT 1974”

a court shall not make an enforcement order (i.e. a consumer credit or hire agreement will be automatically unenforceable) where

a prescribed requirements in relation to the execution of regulated agreements

(set out in section 61(1)(a) of the 1974 Act) were not complied with or a

document containing all the prescribed terms of the agreement was not signed by the debtor or hirer;

Schedule 6 that sets out the Prescribed Terms for the purposes of s61(1)(a) – the heading makes this very plain. An omission or misstatement of a Prescribed Term set out in this Schedule 6 will render an agreement automatically unenforceable. This was the position in Wilson where ‘the amount of the credit’ was incorrectly stated.

AMOUNT OF CREDIT

RATE OF INTEREST

How to discharge your obligations:

eg:

NUMBER OF REPAYMENTS

AMOUNT OF REPAYMENTS

FREQUENCY AND TIMING OF PAYMENTS

DATES OF REPAYMENTS

Schedule 1 does NOT set out Prescribed Terms for the purposes of s61(1)(a) and so an omission of any provision in Schedule 1 will NOT render the agreement automatically unenforceable.

This post here:

 

 

Here is the response that welcome supplied the fos, This explains in black and white what Ive already told you. at the end of the day its down to you which route you take your case. I would however advise you to look at the letter I recieved this is the facts on how welcome work agreements out also make you fully understand what myself and Steven are telling you. I think failing this an Accountant will be able to explain how you agreement is worked out.

I will again say how frustrated I was when I recieved this letter because I honestly believe it isnt clear enough for a lay person to understand and it has took me a while to grasp. I wish you the best of luck with your case.

 

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It still does not change the fact that they did not state that interest is charged on the mortgage indemnity fee.

The FOS "APR is a compounded rate that includes the charge for creidt (acceptance fee and MIF) as interest"

NOWHERE ON THE AGREEMENT DOES IT STATE THAT INTEREST IS TO BE CHARGED ON MIF.

A CLEAR MIS STATMENT OF INTEREST.

Unenforceable.....

bumpy bump!!!!

:D

As I understand it there are 2 different distinct types of Fixed Sum Credit and what it appears to me is that welcome have combined what they want from the 2. Type 1 Having given people essentially what are personal loans on the agreements it specifies the amount of repayments and intervals between repayments whch is under paragraph 9(a) of schedule 1 CCAR 1983. This is then qualified in Schedule 6 (prescribed terms) para 5. As I read it having specified the amounts and intervals of the repayments and the charge for credit it is a fixed agreement and should also state the total amount payable as per para 11 of schedule 1.

Type 2 This is under paragraph 10 of schedule 1 CCAR 1983 and qualified under para 4 Schedule 6. Type 2 is more akin to running account credit or a credit card agreement where you are charged a monthly interest rate. As I see it what welcome do is people having a Type 1 agreement have interest applied on a monthly basis as if it were Type 2. I cannot find anywhere any legislation that allows welcome to combine the 2.

The way interest is calculated on a welcome finance loan is very confusing, especially the way it is shown on a statement, interest is charged seperately on the actual loan and on the defualt sums (charges)

Compound Interest - the interest charge on the bulk of the loan

Example

I have a loan of £500, this month my interest is charged at £5 and I do not make a payment then next months interest will be charged on £505. Compound interest allows you to charge interest on interest.

Simple Interest - Charged on the defualt sums

example

I have not made my payments and have charges on my loan of £100. This month the interest is £1 and I do not pay anything off my charges. Next months interest will be charged on £100. Simple interest only charges on the initial amount and does not charge on interest that has been applied.

The interest is applied at the same rate over both the loan & the charges.

When a statement is sent it shows the total balance, the loan and the default sums and does not break this down therefore over complicating matters as it is not clear when simple interest is applied and when compound interest is applied.

If you have any queries over the interest applied the the main part of your loan or the defualt sums or want a breakdown I recommend calling your local office, or Nottingham Central Collections and asking them to explain this to you. As far as I am aware and it was certainly the case back when I did work there that we were unable to produce a statement that was broken down but the information is there for the agent to discuss with you.

just a cleaver way of hiding secret commission.

pers i would advise anyone not to call welcome but to get the info in black and white only

there are 1000's of threads on here detailing successful claims & the way it was done.

why have we never heard this stuff before ...... smokescreen to confuse and further derail members from reclaiming what is justly theirs that welcome have fleeced from them.

dx

My post was to explain how the interest is shown on the statement and how it is calculated I don't doubt you've never heard it before and even if you have you probably didn't listen but take it from someone who knows yeah?

Also I would like to know how applying interest is a way of hiding secrect commission and what evidence you have for this?

just a cleaver way of hiding secret commission.

 

pers i would advise anyone not to call welcome but to get the info in black and white only

 

there are 1000's of threads on here detailing successful claims & the way it was done.

 

why have we never heard this stuff before ...... smokescreen to confuse and further derail members from reclaiming what is justly theirs that welcome have fleeced from them.

 

 

 

dx

I agree with DX to get explanations in writing as too much can be misinterpreted in verbal communication

although i dont know what interest calculations have to do with secret commission which I know exist and there is plenty of evidence with members here

please start you OWN threads

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