Welcome Finance - Termination: Your Rights

[gettingthere]

My son in law bought a car which was financed through Welcome Car Finance. It seems he was also 'persuaded' to purchase Mechanical Breakdown Insurance and Shortfall Extra Insurance. The cost of the insurances were added to his loan.

 

Figures shown on credit agreement are as follows:

 

Amount of credit for goods: £8595.00

Amount of credit for insurances £850

Total amount of credit £9445.00

 

Duration of agreement 48 months

 

Total amount payable for goods £12172.40

Total amount payable for insurances £1203.84

Total amount payable £13376.24

 

 

He has now made 22 monthly payments of £278.63 without missing any.

He decided to exercise his right to terminate the agreement . On page 2 of the credit agreement there is a box which has a figure of £6085.70 in it - it states 'if you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more'.

 

He has paid £6129.86 so sent a termination letter. They have replied saying that he still owes the following:

 

Seperate Agreement Labilities £651.96 (Insurance)

£506.55 (Goods)

 

My simple question is can they do this when the figure in the box clearly says that once £6085.70 has been paid the goods can be handed back.

 

In their letter they refer to the agreement as a 'Multiple' Agreement section 18 Consumer Credit Act 1974.

 

I can see where they get their figures from but surely the 50% box should show a correct figure - their figure shows only 50% of the goods and not 50% of the whole agreement?

 

We really need to know where to go from here as I can see Welcome coming back to him after they have collected the car for the whole amount payable under the agreement ie £13376.24.

[gettingthere]

Further to my original post the plot thickens re this agreement.

 

The original paperwork has now been dug out: we have now found the original invoice from welcome car finance. This shows that the purchase price of the vehicle was £7300.00 plus £299.00 for extras (we have no idea what the extras were) less £1.00 part Exchange Allowance giving a total of £7598.00 due from the finance company. Yet the credit agreement says amount of credit for goods £8595.00!

 

Where the hell has this figure come from?

 

In addition to the above they part exchanged a vehicle and were told they were getting £1000.00 for it.

 

I really do not know where we should go next with this a) a solicitor or b) the police as there appears to be some sort of deception here as whatever the scenario they have been sold credit for £997.00 more than the vehicle cost.

 

I really could do with some advice here.

[Mateyy]

Thats something along the lines of my agreement dont understand were they get the £299.00 for extras :S Only thing extra is were gettin ripped off!! Can they even put tht on the agreement for the part exchange £1.00?? I got told as i was giving them my old car i would get the £1000 of my balance but its never came off neither has the £150.00 deposit i paid.

[Dibbothe3rd]

i think the £299 is for guardex paint protection which they probably never did.

 

The £8595 will most likely be made up of the price of the car, the cost of the insurances and the paint protection.

 

They way they worked the part ex was to take it off the value of the car at source and only show £1 for VAT purposes.

 

Also the amount that allows you to Terminate the agreement only relates to half the car value, or it should as this is what it does on my agreement. however in your case it does not seem to add up.

 

I can under stand they asking for £500 for the goods as in theory if the agreement is over 48 months, then you would have to pay 24 months to meet the 50%.

 

best thing to do is use photobucket, scan the agreements and all paperwork (black out the car details and all personal details, but leave figures) and post them into this thread.

 

That way we can have a nosey and make sure it all adds up and someone with more knowledge and give you some better advice.

 

Also, did you get any documents for the insurances? I bet you will find that the shortfall covers the period of the agreement, but the mech breakdown will only cover 24 months!!! this is mis-sold im my opinion as this happened to me so im trying to reclaim them.

 

best of luck!

[just_jue]

Hi, I had extra's of £299 which was Gardx protection.

At the moment I have complained to the FOS about this and other matters as an extra should be optional.

Good luck with your complaint, and don't let them fob you off.

[postggj]

dibboth

 

you are getting rather good at this ref welcome

 

my hat goes off to you

 

so welcome are now playing this game are they,

 

lets sort them out

 

first thing is phone these people

 

Direct Group - Where Insurance and Innovation Combine - Home Page

 

welcomes partner in crime ref the insurance racket

 

ask them to send all details they have on you

 

keep every thing on need to know from now on

 

do you have any policy docs ref these insurance products

 

direct group will send copies if not

 

can you post up the agreement as requested minus personal info but leave in the figures

 

that letter from welcome ref the vt

 

can you post that up also

 

you have no wories on this, i can assure you of that

[Dibbothe3rd]

dibboth

 

you are getting rather good at this ref welcome

 

my hat goes off to you

 

 

Only picking up from the experiences of others and from good people like yourself.

 

If I hadnt had found this site I would not even know about the problems with Welcome etc...

 

Certainly opened my eyes a bit!!

[gettingthere]

I have now pasted the agreement and car order form details - as you will see the amount of credit (before insurances) is £997.00 more than price of vehicle! the order form clearly states that amount due from finance company is £7598.00 not £8595.00 as shown on agreement.

 

 

 

IMG]http://i10.photobucket.com/albums/a115/Billyborder/Welcome/CleanOrderForm2.jpg[/img]

 

 

 

[postggj]

How Do You Want To Play This

 

Welcome Have Shafted You Big Time And You Have The Proof To Back Up Your Claim

 

No Doubt Internal Commission Comes Into This#

 

Welcome Elite Brokers

 

Pleas Confirm This Was A Welcome Show Room And Not An Indapendant Garage

[gettingthere]

As far as I am aware this was a Welcome Showroom at Castle Donington as shown on top of the order form.

[gettingthere]

Can anyone suggest what the options are with this?

[postggj]

well you need to demand an explanation as to the difference in the balance for a start

 

compliance in nottingham will need to deal with this

[gettingthere]

Thank you - I will send a letter recorded delivery.

[gettingthere]

Well we had a few letters from Welcome about this and then several fron various DCA's who we told to go away as the agreement was flawed etc etc. Now we have a letter from PRA Group saying they have bought the debt and demanding payment etc etc. Letter sent suggesting that they send it back to Welcome (Cattles) as account is in dispute. They follow up with a letter 'requiring' us to forward the evidence - that's not going to happen as Welcome have had copies of the flawed car invoice etc and we have invited them to take court action which obviously they have not yet done. Letter sent to PRA again stating our position so will keep thread updated as no doubt this will go on for a bit, to be honest it would be nice to go to court to show what has happened. No doubt others will be having their Welcome accounts sold to PRA.

[gettingthere]

PRA have now replied that they have suspended all action on account and that they are contacting Welcome about it!