Welcome finance secured loan question

[will lliw]

Hi folks,

 

Just a quick question on my secured loan from WF if anybody here can help or has had a similiar situation.

 

I took out this 3K secured loan last year for a period of 3 yrs and got what i think is a decent rate of 16% considering my poor credit. Anyway, due to sickness I have not paid for 5 months and have had no default notice or phone call just a notice of sums in arrears, is this the same as a defualt notice? I did enqiure a few months ago by phoning but cant really remeber the conversation I had. However i recieved a statment in the post a week later.

 

My question is how come WF havent pesterd me since im 5 months in arrears and has anybody had a similiar experiance? Is this how a secure loan usualy works if you fall behind?

[pwg6565]

Very strange for Welcome. I have a secured loan and only one months arrears and they constantly pester me for the arrears. Think they make up the rules as they go along.

[will lliw]

from what i have read on here you prob right, begining to wonder if ive slipt inbetween the cracks or am just simply small fish as the loan is only small compared to most.....

[pwg6565]

We can only guess at that one. Bet the charges are racking up though on your loan. Send a Subject Access Request if you want to find out just what they are up to with your account. Costs £10 and send by recorded delivery.

[Fester Tester]

Sickness? Did they not manage to get you to sign up for PPI then? That's unusual in itself.

[will lliw]

I refused to take the PPI and was advised this was risky what with the lone being secured etc. I stuck to my guns on that one. To be honest I have read around here and the general conscencus is that WF are a bunch of T~*~s but so far they have been alright with me. (steps outside to take some air)

[Fester Tester]

Perhaps your local branch is one that has been closed? Most of the chasing is done at a local level. In which case, the main offices will have their hands full trying to cope with the overspill, I would imagine.

 

What a shame.

[will lliw]

Hi to all the great folks here old and new!!

 

I have a little problem that may well go critical for me V soon and so I am asking if anybody out there could offer some advice please.... I have already read around the welcome posts alot but there are some rather large threads that I am still working through so apologies for my ignorance as I am still doing my homework.

 

About a year ago I took a secured loan with welcome for £3000 and in doing so I broke my own golden fiscal rule of taking on secured debt (thankyou Gordon!). I have not paid any instalments for around 6 mths due to reduced income related to ill health and have now recieved a defualt notice. I did not take the PPI and so find myself in some mess....

 

Below is my default notice anonomised if somebody with experiance could look over and give me there opinion....

 

Thanks

 

W

 

 

PAGE 1

Ref: XXXXXX

Date: 04/12/2009

 

Dear XXXXXXX

 

FAILURE TO READ THIS LETTER MAY RESULT IN LEGAL PROCEEDINGS

 

You are hereby served under Section 87 (1) of the Consumer Credit Act with the attached Default Notice. We intend to exercise our rights to enforce collection unless you clear the arrears within fourteen (14) days or alternatively contact us with your proposals for settlement.

 

Be advised that should you fail to contact us and legal action becomes necessary we may apply through the courts for an Attachment of Earnings Order to be made and deducted via your employers.

 

This notice should include a copy of the current Office of Fair Trading information sheet on default. This contains important information about your rights and where to go for support and advice. If it is not included, you should contact us to get one.

 

You will also be held liable for legal expenses incurred.

 

We strongly urge you to telephone the undersigned immediately with your intentions.

 

 

Yours sincerely.

 

 

Welcome Finance

 

 

PAGE 2

 

 

IMPORTANT - YOU SHOULD READ THIS CAREFULLY

 

DEFAULT NOTICE

 

Served Under Section 87(1) of the Consumer Credit Act 1974

 

Date of Notice: 04/12/2009

 

Agreement Reference: xxxxxxx

 

Between xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

and WELCOME FINANCE of Welcome Financial Services Ltd, Bishops House, Abbeyfields Road, Lenton, Nottingham, NG7 2SZ.

 

We refer to the above Agreement which you have entered into with us. The terms and conditions provide that you must pay each monthly installment in full on its due date. You are in breach because you have failed to pay the contractual installments.

 

To remedy the breach you must pay to us the total arrears of £ xxxx within fourteen (14) days.

 

 

IF THE ACTION REQUIRED BYTHIS NOTICE is TAKEN BEFORE THE DATE SHOWN THEN NO FURTHER ENFORCEMENT ACTION WILL BE TAKEN IN RESPECT OF THE BREACH

 

IF YOU DO NOT TAKE THE ACTION REQUIRED BY THIS NOTICE BEFORE THE DATE SHOWN THEN THE FURTHER ACTION SET OUT BELOW MAY BE TAKEN AGAINST YOU (OR A SURETY).

 

FURTHER ACTION:

 

On or after 14 days from the date of this notice we:

 

- shall require payment of the outstanding balance less rebate allowable and other deductions (if any) as set out below:

- may enforce any security given in connection with this Agreement.

- may apply for an Attachment/Arrestment of Earnings

 

If the arrears have been paid before the date shown above you may ignore this demand.

 

PAYMENTS TO BE MADE:

Total amount outstanding: £xxxxxx

Rebate of Acceptance Fee and credit charges*: (£78.25)

Rebate of insurance *: (£0.00)

Collection Fees £84.29

Default interest £xxxxx

Interest to settlement £xxxxx

Total amount to be Paid: £xxxxxx

*Rebate is calculated on the assumption that payment is made on the date shown and will be revised if payment in full is not made on that date.

 

IF YOU HAVE DIFFICULTY IN PAYING ANY SUM OWING UNDER THE ACCOUNT OR TAKING ANY OTHER ACTION

REQUIRED BY THIS NOTICE YOU CAN APPLY TO THE COURT WHICH MAY MAKE AN ORDER ALLOWING YOU OR ANY

SURETY MORE TIME.

 

IF YOU ARE NOT SURE WHAT TO DO, YOU SHOULD GET HELP AS SOON AS POSSIBLE. FOR EXAMPLE YOU SHOULD CONTACT A SOLICiTOR, YOUR LOCAL TRADING STANDARDS DEPARTMENT OR YOUR NEAREST CITIZENS' ADVICE BUREAU.

 

This notice should include a copy of the current Office of Fair Trading information sheet on default. This contains important information about your rights and where to go for support and advice. If it is not included, you should contact us to get one.

 

[will lliw]

Hi folks, really need some help to tackle this one if anybody has any idea's I would be gratefull.

 

Does anybody know if it will be possible to negotiate a lower settlement on this secured loan of mine as I have just recieved my redundancy pay but have to be carefull how I spend now as no longer earning. I really need to contact them ASAP as my 14 days defualt notice is up so if anybody can help with any advice that would great....

 

Thanks!!

[will lliw]

As I am in Default Does anybody know if it would be to late for me to send CCA and SAR?

[ozzywizard]

Not sure of the implications on the letters, im sure somone else can advise on that but it is never too late to send a CCA or SAR as they are legal obligations..... good luck with it all, might be worth holding off on the CCA and SAR for the adress to be confirmed as they gone bang and Post is confirming the correct addy. last thing you ant is too lose your 10 pound fee . . .

[will lliw]

Not sure of the implications on the letters, im sure somone else can advise on that but it is never too late to send a CCA or SAR as they are legal obligations..... good luck with it all, might be worth holding off on the CCA and SAR for the adress to be confirmed as they gone bang and Post is confirming the correct addy. last thing you ant is too lose your 10 pound fee . . .

 

 

Thanks Ozzy I have SAR and CCA ready to go but didnt realise the address might be changing. I will wait as advised and see what POST digs up. Thanks again...

 

Getting a little jittery though as this loan is secured on my house and my 14 days defualt notice is up. Plus Ive never dealt with secured loans before!!! Never again!

[42man]

Just my take on this but they typed (14 days) as opposed to it being an actual date - have a read of this - http://www.consumeractiongroup.co.uk/forum/show-post/post-2166205.html

 

Especially this bit -

 

SCHEDULE 2

 

FORM OF DEFAULT NOTICE BEFORE A CREDITOR OR OWNER CAN BECOME ENTITLED, BY REASON OF ANY BREACH BY THE DEBTOR OR HIRER OF A REGULATED AGREEEMENT, TO TERMINATE THE AGREEMENT, DEMAND EARLIER PAYMENT OF ANY SUM, RECOVER POSSESSION OF ANY GOODS OR LAND, TREAT ANY RIGHT CONFERRED ON THE DEBTOR OR HIRER BY THE

AGREEMENT AS TERMINATED, RESTRICTED OR DEFERRED OR ENFORCE ANY SECURITY

 

 

Regulation 2(2)

 

 

 

Details of agreement

 

1

 

A description of the agreement sufficient to identify it.

 

 

 

Parties to agreement

 

2

 

(1) The name and a postal address of the creditor or owner.

 

(2) The name and postal address of the debtor or hirer.

 

 

 

Details of breach of agreement and action required to remedy, or pay compensation for, the breach

 

3

 

A specification of:--

 

(a) the provision of the agreement alleged to have been breached; and

 

(b) the nature of the alleged breach of the agreement, specifying clearly the matters complained of; and either

 

© if the breach is capable of remedy, what action is required to remedy it and the date, being a date [not less than fourteen days] after the date of service of the notice, before which that action is to be taken; or

 

(d) if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach and the date, being a date [not less than fourteen days] after the date of service of the notice, before which it is to be paid.

 

 

Action by the creditor or owner to be ineffective if breach remedied or compensation paid

 

4

[will lliw]

Hi fellow caggers new and old.

 

I have a small secured loan with welcome that i took out a couple of years ago, I have not made any repayments since before christmas due to ill health and redundancy and I did not have ppi!

 

My problem is that welcome ( through Salans LLP) are threatening to seek to enforce the charge over my property by way of possesion proceedings, but the loan is only 1% of the current market value of my house!

 

I have never before defaulted on a secured loan and as such could do with some help and advice from my fellow caggers.

 

Can welcome actualy get possesion even though the charge is around 1% of the house value?

What about my mortgage company, wont they be ****ed?

What is the general process creditors take with a defaulted secured loan?

 

Thanks in advance...

 

W

 

 

 

 

Can welcome take possesion

[beyondhope]

Sorry I dont know much about secured loans but my understanding is welcome would be the second charge and therefore would need agreement from your mortgage company before they could take possession. I would imagine it highly unlikely that the mortgage company would be willing if you are up to date with them (no major arrears) especially if their second charge is of such small value. Hope someone with more knowledge will be along soon

[will lliw]

Thanks for posting beyondhope, I think I might just call there bluff and continue to ignore them unless a better plan turns up fast!

[Major Player]

Can you speak to the land registry and get them to tell you what sort of charge it is that they have registered on your property? They may not even be entitled to repossess, also as Beyond says, they will have to ask permission from the main mortgage company who will be paid off first and as Welcome are not flush with cash, may just be trying to call your bluff

[will lliw]

Can you speak to the land registry and get them to tell you what sort of charge it is that they have registered on your property? They may not even be entitled to repossess, also as Beyond says, they will have to ask permission from the main mortgage company who will be paid off first and as Welcome are not flush with cash, may just be trying to call your bluff

 

Good idea Major thanks, have just paid £4 to see the title register and can confirm welcome have a charge registerd

 

I saw a sticky about charges earlier so going off to read that now, see whats what.....

[DT&FE]

Guys

 

We're now in a similar position with Salans getting aggresive on behalf of Welcome. They have demanded an I&E form be completed but as we have learnt from this site that can only be requested/demanded by a court.

 

An interesting fact is that when we took this loan out (in 2008)8) Welcome knew it would put us into negative equity, but they were confident the house prices would continue to rise!!!! Even our mortgage company contacted us to say they would agree to the second charge but we had to be aware that we were getting into negative equity.

 

My understanding, from others, is that SALANs are very very agressive.

Edited September 15, 2010 by DT&FE
spelling

[will lliw]

Guys

 

We're now in a similar position with Salans getting aggresive on behalf of Welcome. They have demanded an I&E form be completed but as we have learnt from this site that can only be requested/demanded by a court.

 

An interesting fact is that when we took this loan out (in 2008)8) Welcome knew it would put us into negative equity, but they were confident the house prices would continue to rise!!!! Even our mortgage company contacted us to say they would agree to the second charge but we had to be aware that we were getting into negative equity.

 

My understanding, from others, is that SALANs are very very agressive.

 

 

Hi DT&FE and thanks for posting in my thread, I wasnt getting much of a responce so happy to see you here! I see you may have dealings with Salans aswell, do you know if they are welcomes in house lot as they are based in newcastle same as welcome I believe?

 

I ignored Salans initial strongly worded letter as I said I would and have recieved a second letter as a result a few days ago. This second letter has a much better tone to it, obviously they start by letting me know how disappointed they are at my failure to respond to them despite several attempts at contact lol.

They then go on to suggest that welcome wish to aviod enforcement proceedings (change of language here from first letter threatening possesion proceedings).

It seems welcome are willing to look at my individual circumstances with a view to a mutualy acceptable outcome.

 

Lucky me lol

 

So thats where im at with this lot and Im not worried in the slightest as I think they are trying it on, becasue as far as possesion goes I dont think they have a chance. This is due to the small amount of debt welcome have secured in relation to the mortgage value and equity remaining. I cant see my mortgage company allowing welcome to take possesion and so I think I might just let the council continue filing Salans letters....