Welcome finance help needed

[rjex]

Put a post in welcome finance section but only had a couple of replies, they were very helpful. However need more advice as going to court a week on Monday and am Bricking it.

 

Here is the situation.

 

My stepson has had problems with welcome finance he took out a loan in 2005 with them for around £2000 he got into difficulty and they would not accept reduced payments but offered a re-write loan totalling £4500 thus getting into more debt. If he could not pay the first loan he was not going to be able to pay the next one so again he got into difficulty. Although he did pay for over a year. However he fell behind and then got into a position where he could not pay . They threatened court action but he could not offer any money as he had none. They then went to court without notifying him and got a CCJ against him.

 

He came to me about the problem and I said I would help, firstly they cannot provide the credit agreement from 2005 the loan that was re written for the second loan. If they cannot provide this as there is no evidence to suggest how they amalgmated the two loans together no evidence to show how much he paid on the first loan. Also they have not provided even after request statements for this 2005 loan.

 

Does this therefore imply that firstly they are in breach of the CCA 1974 as they have no documentation of this loan.

 

Secondly does this also mean that the second loan is also in breach of aforementioned act because it is based upon a loan that they have no evidence of, as far as statements and CA are concerned.

 

Finally looking at the affordability checker they used for the 2007 loan they calculated his disposable income as being £90 a month. The loan payment was for £85 a month leaving £5 a month spare. If prices fluctuated on the information they required to carry out affordability like food, clothing, rent, tax. This would mean that the tiny amount of £5 a month would be eaten up quickly and therefore would have problems paying almost immediately do you think there is an argument for irresponsible lending.

 

I really need help with this as I am representing him in court in two weeks time and I need as much ammo as I can.

[diamondgirl]

Hi

 

Have you actually CCAd Welcome if not do it as quickly as possible.

I'm actually not well up on Welcomes tactics. If you are struggling to get the advise you want you to ask one of the site team for some help.

I will get back to you later as have to go out shortly.

 

DG:)

[Laurel&Hardy]

At a guess, if they can't prove that there is any loan agreement, then just get your son to state in writing that he does not recognise any debt with them. I suspect that they know that he could get away with it, unless he does nothing in which case...

 

I'm no expert, but that is what I would do.

[rjex]

I've asked welcome for the credit agreement but all they produced is the 2007 agreement. The 2005 loan was re written into the 2007 agreement, however they have not provided me with any evidence as to how much was paid on the first loan, what interest was being paid whether the agreement was signed.

 

The only information I have that the 2005 loan existed is a default notice which states that the amount payable under the agreement is £6230. But the agreement they have given me for the 2007 loan is £4135 so it is obvious there is a discrepency as the amount payable is higher than stated on the 2007 agreement.

 

Does this mean therefore that they must produce the 2005 agreement so that they can enforce the later agreement. As a judge will clearly see the discrepency in the two figures. Is this a breach of the CCA 1974 ?