I am in the process of sending a complaint to the financial ombudsman however have read online that it can take 12-18 months for them to deal with complaints and to be honest this has been going on for years so I just want it sorted......
Basically although I know long winded this is the issue at the moment:
I originally took a loan out with welcome finance on the 22/2/2007 for £2000 the agreed repayment rate was £105.97 a month for 36months. I made the following payments to this account:
£105.97 - 31/03/2007
£105.97 - 01/05/2007
£105.97 - 01/06/2007
£105.97 - 30/06/2007
Total = £423.88
Due to the failure to make payment on the account although it wasunaffordable as I was already behind with payments I agreed for the loan to berefinanced on the 06/08/2007 to £4,102.24. The following payments were subsequently made towards this loan.
£167.87 - 3/09/2007
£167.87 - 3/10/2007
£336.87 - 07/11/2007
Due to continuing financial difficulties I contacted Payplan in lateNovember 2007 requesting assistance to manage my out of control debts. Payplanfirst contacted welcome finance on the 19th November 2007 advising you that Iwas experiencing financial difficulty and they were assisting me with myfinances. Payplan requested confirmation of my then outstanding balance andwelcome finance responded on the 29th November 2007 confirming that thebalance outstanding was £5,579.45.
Payplan sent welcome finance an offer of repayment on 13th December 2007of £31.50 a month and also made the following request:
“In order for our client to best discharge their liability to yourcompany we request that you suspend any further interest charges on thisaccount. We would greatly appreciate, if you could confirm this in writing.
If the debt is passed on to a Debt Collection Agency, please inform us atyour earliest convenience of the name, address and banking
details of the Agency, for us to commence payments immediately. It iscrucial for the smooth running of this agreement that this information ispassed on to us”
On the 20th December 2007 Welcome finance confirmed acceptance of theoffer. However later due to a change with my financial circumstances followingagreement with Welcome finance my payment in April 2008 was reduced to £10.07and however I was able to increase this in May 2008 to £25.89.
My financial situation continued to improve and Payplan went on to makethe following payments to welcome finance.
June 2008 - £63.10
July 2008 - £63.10
August 2008 - £63.10
September 2008 - £63.10
October 2008 - £63.10
November 2008 – £63.10
December 2008 - £63.10
January 2009 - £63.06
February 2009 - £70.56
March 2009 - £70.56
April 2009- Missed payment
May 2009 - £70.56
June 3009 – £70.56
My Husband was then unfortunately made redundant which I explained toPayplan and as a result my monthly income was reduced significantly. They madeall my creditors aware of this and a reduced payment term was agreed, thefollowing payments were then made:
July 2009 - £34.38
August 2009 - £34.48
September 2009 - £34.48
I was struggling to keep to the payment arrangement of £34.48 thereforediscussed the matter with Payplan who once again contacted my creditors andwith agreement the payments were once again reduced however as and when I wasable to pay more I always strived to do so.
October 2009- £4.38
November 2009 - £56.69
December 2009 - £56.74
January 2010 - £56.74
February 2010 - £56.74
March 2010 - £56.74
April 2010 - £56.74
May 2010 – £14.91
June 2010 - £56.75
July 2010 - £56.75
August 2010 - £56.75
September 2010 - £56.75
October 2010 - £76.22
In November 2010 there was once again a significant change in mycircumstance and a previously I contacted Payplan who made an arrangement withmy creditors for me to pay a significantly reduced amount and the followingpayments were then made:
November 2010- £1.00
December 2010- £1.00
January 2011 - £1.00
February 2011 - £1.00
March 2011 - £1.00
April 2011 - £1.00
May 2011 - £1.00
June 2011 - £1.00
July 2011 - £1.00
August 2011 - £1.00
I have always strived to keep Payplan updated on my financial situationand as soon as my surplus income improved my creditors were contacted, as aresult my payments to welcome finance were increased to £5 a month and to dateI have made an additional 26 payments at £5 a month.
To date I have paid Welcome finance a total of £1,985.70 throughPayplan.
In late 2012 I decided to review my credit file with Experian, I was alarmed at finding that welcome finance had recorded that I took a loan out onthe 21/12/2007 for £7,200.61 after them having agreed a paymentplan with paypal and for interest to be stopped on the existing loan on the 20th December 2007!!!.
I contacted Welcome finance in March 2013 by telephone as I had no awareness ofthis loan for just over £7,000, I was advised that the loan had been refinancedto take into account the change in payment. I requested a copy of the creditagreement however I was advised that they do not have one and it was donefollowing payplans offer; at no time had I agreed for the loan to be increasedto £7,200.61 to take into account the change in payment.
Following this on the 26th March 2013 I sent a formalcomplaint to Welcome Finance and received a response in April 2013 advisingthat they were investigating my concerns. However since this date I have madenumerous telephone calls to Welcome finance and they have been unable toprovide any sufficient reason as to why the loan was refinanced as well asincreased without my authorisation. Furthermore despite advising in April theyare yet to respond to my complaint in writing.
The agreement that payplan had with Welcome finance was for the interestto be stopped and that I made the remaining payments of the outstanding balancewhich was with all the interest added £5,579.45 which although agreed theamount was disputed.
I am extremely concerned as to how an original £2000 loan increased to£7,200.61 in a period of 10 months when I was clearly struggling financiallyand affordability was clearly an issue. I am aware that Welcome finance are ahigh interest lender and perhaps through my age and naivety at the time I didnot fully grasp this concept however having liaised with Payplan who in turncontacted Welcome finance I am concerned that a loan was refinanced onceagain in 2007 without my knowledge nor agreement.
To date I have paid Welcome finance a total of £3,082.19 which clearly coversthe original amount borrowed. Welcome finances unfair practises over the yearshave caused a significant amount of stress and distress to myself. Although Iacknowledge that clearly initially I chose to take out the original loan I feelthat their practises since this date have been evidently irresponsible.
Having recently reviewed by credit rating with Experian I have beenalarmed that since April 2013 when I advised them that until the matter wasresolved I would not make any further payments they have proceeded to demolishmy credit record by registering late payments since the date of my complaint.
This is obviously having an impact upon my credit rating and over the years has caused a significant amount of stress, they are not taking me to court but can I take them to court?? after all they refinanced a loan without my permission and as such do not even have a credit agreement?