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Me & Welcome Finance (long!)


Dizzle
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26 April 2010. PLEASE NOTE: This thread is 4 threads over 2 years all merged together. Posts 1-17 are now background information and you can find my current query from post 18. Thanks.

 

*******************************************************

 

Hello!

 

I have an unsecured loan with Welcome Finance for £2500 that I took out in May this year, payable over 36 months with installments of £190 inc PPI.

I wrote to them at the beginning of June requesting that the PPI be cancelled, as was my right within the first 28 days, by recorded delivery. They didn't cancel it, and I decided to let it ride. I cannot find the reciept for the signed delivery, though I did check at the time and they did receive it.

 

I left my job at the end of August (voluntarily, with a view to taking a new job that fell through) and my next payment is due this Monday coming. Since I am now running out of money fast, I have just cancelled the Direct Debit as it is a choice of paying the rent this month or paying them (not a difficult choice).

 

I cannot make a claim on the PPI not least because the loan has not been running for 6 months.

 

Now, I need advice on the best way to move forward. I cannot make any promises to pay any amount until I've found a new job.

 

Questions I have...

 

The interest rate charged on this loan is around 69% APR- is this classed by the OFT/FSA as extortionate? If so, is there anything I should be doing about it?

 

Also, when I applied for the loan I was earning £962 before tax with a rent of £325. The loan payments are £190. Have they sold me a loan with sufficient information to cause concern that I may not be able to afford the repayments?

 

I am NOT trying to get out of the debt. I just need to know the best way to proceed without things getting out of hand. Obviously the first thing to do I phone them and explain the situation, which I will do on Monday (I'm not in a position to do so today), I just need to be armed with all the advice and information possible.

 

Thanks in advance.

Edited by Dizzle
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Also, would someone be able to clarify what would happen if the account entered default? By which I mean would they want an amount equal to what I would have paid if I met all 36 monthly payments ( ie 36 x £190 = £6480)?

 

If for example, I paid no more to them from this day forward would they seek the interest that would have been applied over the next 32 months. Or do they calculate it as what I have borrowed, minus what I have already paid plus interest at the given rate from the start of the loan through to today?

 

Are Welcome Finance going to come after me for £6500 or something more like £3000?

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Guest suziedarkness

Hi Dizzle,

 

Im sorry I cant answer your questions as I am pretty much in the same boat as you. what I can tell you is that WF think they are a law unto themselves. They are unhelpful, uncooperative and they will continue to just pile on the interest.

 

I have a loan with them which was secured but now isnt due to my home repo, and I havent paid them for over a year. When I asked for help in the beginning they didnt want to know, they did not cancel the PPI even though I put the request in by letter as they asked.

 

I have written to them asking for a copy of the CCA, I dont expect to get it but if I do I will then hit them with a SAR request.

 

They do not check to see if people can really afford these loans, they just arrange them at extortionate rates and in my opinion rip off vunerable people. The ppi is suspect anyway and if you look on here you will find hundreds of Welcome threads.

 

What I can advise you is to not deal with them on the phone. They have a nasty habit of harassing people on the phone. All communication with them must be in writing so you have hard evidence of what goes on.

 

There are great people on here with lots of knowledge and help to give and I am sure they can give you more advise.

 

Good luck.

Suzie

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hi dizzie

 

have a look at this thread

ask welcome the same questions towards the end of the thread

 

we are getting near the truth with the dodgy ppi welcome sell

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/147639-welcome-finance-investigation.html?highlight=postggj

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  • 3 weeks later...

Ok, so I have an unsecured loan with Welcome and the monthly repayments are £190 a month. I was unable to make this month's payment and notified them of such. I have arranged to continue payments as per schedule from the end of this month.

 

Last week I got a letter stating charges of £40 (2 x £20) would be applied to the account, which I expected.

 

What I didn't expect was the letter I got from them this morning which goes something like this.

 

"Because of some new inconvenient for us law, we now have to write to you telling you that you are in arrears, rather than let you keep guessing. The amount of arrears is £401"

 

£401????????

 

Where on earth are they getting this figure from? Is this what it is costing me if the payment is tacked onto the end of the loan?

 

What are my chances of me deliberately defaulting on the loan and getting it passed to a DCA so I can stop this getting out of hand and pay a regular amount to them?

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I suggest that you write to them and ask them to provide you with a breakdown of how they arrive at the figure of £401.

 

My guess is that it is a typing error.

 

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This is Welcome so I fear not. I have written to them twice in recent months, by recorded delivery to my local office and have twice been ignored.

 

I have just typed out a letter informing them that I won't be able to make this month's payment either, also requesting (for the 2nd time) that they cancel the PPI at the same time as it is useless to me, and for all future communication to be in writing.

 

I expect a phonecall on the 24th when the payment is due lol.

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Guest suziedarkness

Hi Dizzle,

 

It wont be a typing error!! they are ruthless bunch of sharks.

 

I dont think they will default you because they like to keep on piling on the interest. I had a secured loan with them for £25,000 but it is now unsecured as my house has been repo'd. I wrote to them when I kneew I was in trouble but they dont care, they just keep adding on the interest, adding on the charges. they now say I owe them £40,000 :eek: which I defend completely.

 

My advice would be to send them a SAR (Subject Access Request) letter. It will cost you £10 but they should send to you within 40 days( I think!) all the data they hold on you. This should give you a breakdown of the charges applied and they are supposed to give you details of the PPI which you may well need. They may of course completely ignore this request but if they do not comply you can report them and they are not supposed to process anymore data on you or add anymore activity to the account.

 

There is on this site somewhere a template letter for SAR. They always advise to send a postal order with "for SAR purposes only" written on it for the £10 and not to sign the letter. Always send recorded delivery as a minimum.

 

You may also want to search for other Welcome threads on here, just to show you the type of company they are and pick up tips on how to deal with them.

 

Like you, I am one of the many battling with them. They should be closed down in my opinion.

 

I am sure some more Caggers will be along soon who will have more advice for you.

 

Suzie

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If you were missold the PPi you can claim this back to offset the amount:

 

PPI - Consumer Wiki

 

 

Ida x

Please contact a member of the site team if you are offered help off the forum for a a paid or no win no fee service.

 

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Hi there, you're wasting your time writing to your local branch, they will not answer, none of them ever do.:mad:

 

You need to write to The Compliance Officer at their head office in Nottingham regarding your PPI. Also affix copies of the letters you have sent to the branch asking why you have not had a reply.

 

If you need any help with the letters give me a shout.

 

Ell-enn

Help us to keep on helping

Please consider making a donation, however small, if you have benefited from advice on the forums

 

 

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My advice is based on my opinion and experience only. It is not to be taken as legal advice - if you are unsure you should seek professional help.

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  • 1 year later...

I've been reading with interest that Welcome are teetering over the edge of the abyss recently.

 

I refinanced a loan with them last summer (yeah, yeah I know) which I have since fallen into arrears with after losing my job in January. I checked my credit reports (EQ & EX) today and noticed that the only entry for Welcome is for the original loan which shows as satisfied at the time of the refinance.

 

There is no mention of the new loan on either report despite being 3 months behind with my payments (they've been getting £2 a week up until recently as they've now started returning my cheques uncashed :confused: ).

 

Have they stopped reporting to CRA's now that they are in trouble? Have I just been overlooked? Are they likely to make an entry once the account (inevitably- unless I find a job pretty quickly) defaults?

 

I have a Vanquis card that I use for building my credit rating and they've not increased my limit in the 11 months I have had the card and thought it must be Welcome that is holding it back, so I'm very surprised Welcome isn't there!

 

Thoughts please?

 

Thanks

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I cant find anything on HP agreement anywhere lol

I am a consumer just like you, please get a second opinion or investigate yourself on anything I advise as I am in no way legally trained. Everything I know has come from the Mighty CAG and fellow CAGGERS. :cool:

 

If I have helped in any way please click my reputation star and make a donation to CAG to enable us all to continue to help each other :cool:

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do you think they have stopped reporting on peoples credit files? i have 2 accounts with them and none has been reported last month!

 

I'd be incredibly grateful to them if they have stopped :D

 

Just while I sort myself out anyway.

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They had stopped reporting mine for about 9 months! They had done nothing at all, just left everything for FOS decision!!!

 

Then a Fortnight ago they Had placed Markers on my Credit File!!! They sent a Statement of Account that was absolutely a mess and had a totally different Interest Rate to the Agreement!!! They also last week sent a Default Notice!!!

 

What they are up to is anybodies guess???

 

And Yesterday received A letter from FOS Upholding our PPI and Other Insurance Complaints!!! LMAO

 

What are They Doing???

 

Cheers, MARK

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Right guys, I need some advice with what to do, and I apologise now that this post might get a little long. :cool:

 

I originally took out a loan with Welcome Finance for £2500 in May 2008. I still have the original credit agreement which mentions the loan was brokered by Central Capital Ltd.

 

On top of the loan there is £250 for the Personal Accident Plan, and £982.20 for PPI, making the total £3657.20.

 

I was told by the original sales person on the phone (I assume Central Capital, I can't remember) that the PPI was a condition on me getting the loan. From reading my old posts, I did make an attempt to cancel the PPI within the first 28 days, in writing, without success. (More on this later.)

 

The term of the loan was 36 months @ £190.61, which I paid for around 9 months, (missing a payment in the middle) before I had to take a job with less pay, so I got into difficulties (for the 2nd time).

 

Stupidly, I know, in June 2009 I agreed to refinance the loan, with one of their guys coming to my house to do the paperwork. There is no PPI on the new loan, but according to the new agreement the amount of credit is £4329.65(!) with an APR of 12.68% over 120 months(!!) @ £63.19 a month.

 

I was in such a mess at the time, I didn't really know what I was agreeing to.

 

At the end of last year I lost my job and have yet to find a new one (health issues I won't go into here), and therefore have been on benefits.

I have also moved address in January, which they have. I had a phone call from (apparantly) HMRC the day before I moved saying they had been trying to contact me as I was owed a NI rebate and had been sending me forms but with no response, so I gave them my new address (I was on the way to a funeral at the time). HMRC now say I am not owed money, and as I got a hand delivered letter from WF a few weeks later with my old address on it, I can only assume it was actually them that phoned. I have not given them my new numbers (first thing I've done right I think.) I have been in contact with them, insisting on written contact only.

 

I wrote a letter in response to their hand delivered letter stating that I was now unemployed and unable to meet my instalments and offered them £2 a week and enclosed a cheque for the £2, which they cashed without response. I continued to send them £2 a week for seven weeks from 25th Jan through to 15th March.

 

At the beginning of March I received a letter from them stating that I am in arrears and would like to offer me a one time deal to settle for the reduced price of £2300ish (I can't find that letter at the moment). I wrote back to them thanking me for the offer but was still unemployed with no savings so I could only continue with £2 a week and enclosed that week's £2 cheque. This cheque was not cashed, nor were the subsequent two.

 

Then I received another letter at the beginning of April stating that they had been trying to telephone me and could I contact them to discuss my arrears. In the envelope was one of the three uncashed cheques, with no explanation.

 

I replied in writing reiterating that I was still currently unemployed and as such could not waver from the £2 a week offer that they were accepting (by way of cashing the cheques) until such time as I found employment, at which point I could re-evaluate my position. If that wasn't acceptable, could they please take the time to write a response rather than send yet another form letter, with their intentions. I enclosed the returned cheque, stating that I would resume sending cheques once this one was cashed.

 

It has not been cashed, so I have not sent any more cheques. I have not yet had a response. As I mentioned in another thread, I checked my credit reports last week and was surprised to see no entry for this refinanced loan at all, only the original loan which was settled last Summer.

 

Right, now back to the PPI. If I were to pursue a claim for a PPI rebate, would Welcome (once forced to relent) want to apply the refund to the current loan to clear the arrears? Are they entitled to do so?

 

Should I wait for a response to my latest letter before starting my claim as I am happy keeping this matter protracted until I get in a better financial situation?

 

I have not been issued with a Default Notice yet (though I feel it is coming, it's been 5 months since I last made a regular payment.

 

Considering the length of the loan, am I better off defaulting now considering Welcome's bleak future, as the loan is likely to be sold on to God knows Who long before 2019?

 

I want to point out that I am not trying to shirk my responsibilities with regards to owing them money, but after less than 2 years I owe them nearly double the original loan amount depsite nearly £2000 in payments to them in the same period. And at the moment I cannot afford to give them any more than that £2 a week. I now want this albatross off my shoulders and would be very grateful to any help you guys can offer regarding either the PPI, the impending default or both.

 

Finally, I believe my local office is still running AFAIK, which is where I sent the cheques (not that I intend to speak to them).

 

Thank you for your patience, I said it would be a long one lol.

Edited by Dizzle
Updated to reflect posts from 2008
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it would be better if we get you 4 threads on the same loan merged so we know where we stand.

 

however, did you get the sar sent of and have you the statement of a/c.

 

i would also expect a HEAP of letter charges etc etc that you can reclaim too.

 

you will also have been ripped off during the refinance you did.

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Here are the links to the orginal threads back in 2008 (I forgot I posted them lol.

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/165545-welcome-finance-advice-needed.html

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/168595-welcome-finance-wtf.html

 

 

And the one I posted last week querying the credit report.

 

http://www.consumeractiongroup.co.uk/forum/welcome-finance/256874-welcome-cra-reporting.html

 

From the first two, I did find work and got back up to date for a few months at least and then it all fell apart again, leading to the refinance.

 

I do have a statement of account from them for the period 09/09/08 through 10/05/09 which shows £80 in default sums and £7.59 in default sums interest. The period up to 09/09/08 isn't shown, but it was a perfect record up til then.

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Four threads merged please keep to one thread it saves the same advice being given and avoids confusion :)

 

Thank you Saintly. I honestly forgot about the 2 threads from 2008!

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Just found this post in another thread

 

http://www.consumeractiongroup.co.uk/forum/welcome-finance/256984-can-someone-take-look.html#post2897867

 

Can anyone shed a light on whether this is true or not?

 

I had PPI on the original loan, which was settled by way of refinancing. The new loan doesn't contain any extras. I doubt the PPI on the original loan covers the new loan, but I am still paying the full whack for it on this new loan.

 

So are they really now hidden charges? There is no mention of any of the details on the original loan, it's purpose or anything. Just the amount of credit and amount of cash advance £0.00 (just to show it wasn't a new cash loan lol).

 

I have copies of both credit agreements, but no way of scanning them. I could try taking a photo tomorrow though if needed.

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Type the figures up if its easier

 

example:

 

total for credit: XXXX (a)

I am a consumer just like you, please get a second opinion or investigate yourself on anything I advise as I am in no way legally trained. Everything I know has come from the Mighty CAG and fellow CAGGERS. :cool:

 

If I have helped in any way please click my reputation star and make a donation to CAG to enable us all to continue to help each other :cool:

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sorry what do you mean

ofcourse it is hidden

thats the game they play

the also hide their charges that way too.

 

i bet you had several letter fees and more stuff

that gets rolled over into the refinanced loan. int on int!!

 

 

unles you get a FULL Subject access requestlink3.gif you will never know

 

dx

 

hey im in two place

 

urh..we'res the gin bottle......

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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