Welcome Finance - Misols Insurances

[mark1arby]

WELCOME LOAN 2005 picture by pears23 - Photobucket

Hope This Helps?

 

Cheers, MARK:cool:

[pears23]

Thanks Mark

 

just wondering if anyone can help me with my questions reagrds the MIF in post #25.

 

thanks again

[pears23]

Bump

[pears23]

Hi postgj

 

see you are online, any advice regards MIF???

 

many thanks

pears

[mark1arby]

I have said this on previous threads, but No one seems to Endorse or disagree with it!!!

 

I Rang the Land Registry. Spoke to a Very Nice Lady who said that, even though she was not a Legal Expert, has she Understood it. Charges Secured On Property were Finished when an Agreement Finished.

 

It Did NOT Matter HOW these Agreements were Finished ie: Paid with a NEW LOAN. When THAT LOAN was PAID, Then A NEW CHARGE Had To BE Done AS WELL!!!

 

It May Be Different For RE Written Agreements. I Understand The Date Of The Original Loan Would Still Be Used. Therefore Negating the Need For A New Charge???

 

Post Was Investigating This Further. He Is Busy With Other Things, So Don`t Know If He Has Had Any Kind Of Outcome On This.

 

Would It Be Too Spurious To rely On the Word Of Some One Who Actually Deals With This For The Land Registry. All I Know is This Lady`s Words give Me Comfort On A Cold Winters Night.8)

[pears23]

thanks Mark, that was my understanding. Have checked land registry and original loan with welcome dated 2005 is currently listed.

 

Have a further query regards the mortgage indemnity fee..........

 

My understanding of an MIF, is that it should only be charged on a secured loan of more that £25K.

 

My original loan was only for £15K, however with added on insurances, charges for credit & MIF this brought the total amount of credit up to ~ £17 900. Should I try to reclaim this too?

 

also if this means the orginal loan was unenforceable due to charge for MIF could this negate the new loan?? no extra money was borrowed, just re-write with insurances dropped off. Or is this just wishful thinking??

 

I'd also like to know if I paid interest on this too, not sure by looking at my agreement, would appreciate some advice please...........

 

thanks

[pears23]

hi folks, have drafted the enclosed with help from other posts on this site.

 

would appreciate some input.....

 

Dear blah blah

 

re:

 

I am writing to you in regards to a secured loan with your company. After having an independent audit done on my agreement, it appears a MORTAGE INDEMNITY FEE has been included on the agreement. This is a surprise as by name, it states mortgage. I do not have a mortgage with your company, I have a secured loan. A mortgage is classed as a charge for a loan over twenty five thousand pounds. This original loan was for fifteen thousand pounds. This is below twenty five thousand so is classed as a secured loan. And as such is regulated by the consumer credit act 1974.

 

The mortgage indemnity fee has been charged at one thousand six hundred and fifty (£1650) pounds. I would now like to address the issue of the the mortgage indemnity fee being a charge for credit. As you are aware, any charge for credit has to have no interest charged against it. Interest was paid on this charge for credit.

 

SUMMARY

To resolve my complaint I require a full and final response to my questions giving me the option to either use the financial ombudsman or litigation through the county court. Thus I require

1. an explanation on what legislation you are using to include mortage indemnity fee on a secured loan and not a mortage.

2. An explanation on what legislation you are using as to charging interest on a charge for credit

3. An explanation as to why on my credit file the loan has been classed as a mortage and not a loan

4. It is my contention that the agreement is infect unenforceable thus making my subsequent re-write unenforceable and require an in-depth response to reject my assertion

In your answer to my questions I have included the following from the office of fair trading

]"For the purposes of considering whether a company is fit to hold a consumer credit licence, the OFT can take into account any practices which we consider to be oppressive, misleading or improper, whether they are unlawful or not," an OFT official said.

 

The OFT's draft guidance says: "No communications or requests for payment should in any way threaten court action or other enforcement of the debt where the creditor or owner is aware that it cannot and will not be entitled so to enforce the agreement."

 

"The creditor or owner should make it clear in communications to the debtor that the debt is in fact unenforceable," it adds. The guidance goes on to warn that: "To mislead debtors into making payment may in certain circumstances amount to an unfair commercial practice under the Consumer Protection from Unfair Trading Regulations 2008."

 

yours blah blah.....

 

looking forward to the feedback...........

Edited January 17, 2010 by pears23

[postggj]

no probs on that:D

[pears23]

thanks. a bit of plaigarism going on but all for a good cause in the fight against this bunch!!

[postggj]

thats what those letters are for

use them

it stops the get out clauses by welcome

[pears23]

sent my letters off regarding mis-sold insurances & questioning the MIF. await with bated breath......

[beyondhope]

cant wait to hear what they come up with

[pears23]

me either!!

Prob more BS!!

[pears23]

hi folks just been following other threads about checking figures and wondered if someone could cast an eye over my agreements please

 

http://i96.photobucket.com/albums/l178/pears23/welcome2005part1.jpg

 

figures on the second agreemenT(2008) not clear so will outline below:

 

total amount for credit (B + C) = 19400.53

total amount of credit for cash advance (B) = 19400.53

 

no insurances

 

amount of monthly payments = £206.81

number of monthly payments = 300

APR 12.9%

 

Total charge for credit (M + N + O) = £42541.31

ACCEPTANCE FEE (M) = £235.00

mORTGAGE INDEMNITY FEE (N) = £0

Interest charge (O) = £42406.31

 

however when I check the figures - even just the adding up of M + N + 0 , I get £42776.31. I can't arrive at the monthly amount.

 

using Welcome figures I get (42406.31 + 19400.35)/ 300 = £206.02

 

however I would appreciate a more knowledgeable eye casting a glance please....

Edited January 28, 2010 by pears23
sp

[pears23]

should read 2008

[pears23]

should also say for agreement number 2, when I use the APR Calculator

Loan & APR Calculator

 

I actually get the following figures

 

19400.53 for 300months @ APR 12.9%

 

Number of monthly payments = 300

Monthly payment = £207.13

 

total amount to repay = £62,138.63

total interest charged = £42, 738.10

 

which are completely different to welcome's figures

 

thanks again for your input.............

[ozzywizard]

Can you just clarify on agreement the APR is 17.7% sorry bad eyes lol.

[postggj]

Pears

 

Your Figures Are Bang On

 

BUT REMEMBER TO ADD IN ACCEPTANCE FEE

OPTION FEE

MIF IN THE TOTAL FIGURE

[postggj]

All Yours Ozzy

[pears23]

Can you just clarify on agreement the APR is 17.7% sorry bad eyes lol.

 

yes for the first agreement

[pears23]

Pears

 

Your Figures Are Bang On

 

BUT REMEMBER TO ADD IN ACCEPTANCE FEE

OPTION FEE

MIF IN THE TOTAL FIGURE

 

for second loan, which is a re-write without insurances of orginal loan taken out in 2005 there is only the acceptance fee.

 

what I am not sure about is what to do with this, does this mean I have an unenforceable agreement??

[ozzywizard]

Ok lets see what I get :

 

loan £15000 over 180 months at 17.7 % apr

 

thats a monthly repayment of £224.58

interest £25,425.71

total payable £40,425.71

 

now we add insurance

 

ppi insurance £2810.94 over 180 months at 17.7 % apr

 

interest £4,764.67

monthly payment £42.08

total payable £7,575.61

 

so we add the loan interest and insurance interest to give £30,190.38 then add acceptance fee of £235 plus MIF of 1650 to give a total £32,075.38

so we add

 

£32,075.38

£15000 loan

£2810.94 insurance

 

to give a total amount repayable £49,886.32

 

divide by 180 to give a monthly figure of £277.14

 

Your agreement is incorrect and will leave a shortfall of 1514.92

[pears23]

Thanks Ozzy, that's great. Just wondering where that leaves me as I re-wrote this loan back in 2008. Incidentally just checking my statement and they add insurances & fees in twice...........

 

so does this mean by settlement figure and thus re-write could alos be incorrect???

[ozzywizard]

Your 2nd loan, correct me if the figures I use are not correct as not seen agreement.

 

loan £19,400.53 over 300 months at 12.9 % apr

 

thats a monthly repayment of £207.12

interest £42,738.10 (that is loads of interest)

total payable £62,138.63

 

no insurances.

 

so we add the acceptance fee of £235 to give a total £62,373.63

 

to give a total amount repayable £62,373.63

divide by 300 to give a monthly figure of £207.91

 

Your agreement is incorrect and will leave a shortfall of 330.63

[beyondhope]

Hey Ozzy you are gettin pretty darn good at that!!