Welcome contract unenforceable??

[ims]

Hi i am currently having problems with wf and read somewhere that the loan on my car is unenforceable if they charged interest on the exceptance fee or something like that, details of the agreement are as follows:

cash price of goods = 6500.00 (m)

deposit cash = 1000.00 (p)

acceptance fee = 195.00 (s)

finance charges for goods = 2391.68 (t)

option fee = 100.00 (u)

charge for credit for goods = 2686.68 (s+t+u) = (w)

total charge for credit = 2686.68 (x)

 

rate of interest 14%

 

Have they charged me interest on the acceptance fee and option fee as i think and have they made the agreement unenforceable???

please help all help appreciated thanks

 

could someone also help with the letter to send them requesting all monies paid to be refunded

[postggj]

do you have a copy of your agreement

 

can you post it up

 

deleate personal info but leave in the figures

 

google photo bucket

 

if you can cut and paste the image code onto your thread

[ims]

will try do it now, do i have to log into this photo bucket thing?

[postggj]

photo bucket is free

 

just ignore the adverts

[ims]

just uploaded to photobucket, how do i let you see them, cos it hasnt given me a url just my log in thing

[beyondhope]

just uploaded to photobucket, how do i let you see them, cos it hasnt given me a url just my log in thing

 

 

There should be the word share above or below the document you uploaded go there and use the code starting just paste that code into a new message here

[postggj]

there should be a link that says

 

share my album

[ims]

think this is the url

http://s994.photobucket.com/albums/af62/imsbucket/

Edited January 21, 2010 by ims

[postggj]

lets try and decode this welcome piece of crap

 

welcome agreements by design are to confuse

 

amout of credit £5500

interest will be £2649.46 not £2391.68 acording to welcome

the total amount payable will be £8149.46

 

next we need to add on acceptance fee/option fee and interest to give a total of £3239.46 add the amount of credit £5500 gives a grand total of £8739.46

so where does this total amount payable on the agreement of £9186.68 come from

 

well take off a grand for deposit, makes no difference as the total amount payable has been misstated

 

the figures are out by £447.22

 

lets work out the monthly payment

 

£8739.46 by 36 months gives a monthly figure of £242.76 not £224.63

 

 

thats why welcome will allways say your agreement is never finished

 

have you got a document called statement of price

[ims]

thanks mate, no i have posted everything that i was given, unless what is the statement of price?? maybe i have it and its named something else?

[ims]

ps postggj you are a legend lol im guessing it is unenforceable then under misrepresentation and misleading of consumer.

[ims]

postggj need your help i have pm you urgently thanks

[postggj]

hi all

 

carch up later tonight

 

regards

[ims]

Hi just wrote this letter can anyone check it prior to me sending it out?

 

To Whom it May Concern,

I write to inform you that following a visit to the citizens advice, and a legal representative, I have found that your Hire Purchase agreement is in breach of the consumer credit act 1974. due to the following:

Your agreement states:

cash price of goods = 6500.00 (m)

deposit cash = 1000.00 (p)

acceptance fee = 195.00 (s)

finance charges for goods = 2391.68 (t)

option fee = 100.00 (u)

charge for credit for goods = 2686.68 (s+t+u) = (w)

total charge for credit = 2686.68 (x)

total payable = 9186.68 (f)

rate of interest 14%

However the correct figures are as follows:

amount of credit £5500

interest will be £2649.46 not £2391.68 according to welcome

the total amount payable will be £8149.46

 

next we need to add on acceptance fee/option fee and interest to give a total of £3239.46 add the amount of credit £5500 gives a grand total of £8739.46

so where does this total amount payable on the agreement of £9186.68 come from

 

well take off a grand for deposit, makes no difference as the total amount payable has been misstated

 

the figures are out by £447.22

 

lets work out the monthly payment

 

£8739.46 by 36 months gives a monthly figure of £242.76 not £224.63

 

 

Due to the above I now inform you that your Hire purchase contract is unenforceable, also the default notice attached to the above account is therefore illegal, and that both of the above contradicts the consumer credit act. I now without prejudice request that all the monies paid to you on the above account have become due upon to me and must be returned to me in full, I also request the deposit paid in full and the removal of the data added to my credit file. I also need address details as to where the vehicle in question needs to be returned.

I believe I do not need to inform you that should my request not be adhered to I am legally entitled to return of all monies paid on this account plus associated court costs and legal fees along with 8% interest as standard.

I also give you 7 days to rectify the above, failure to do so will incur a £10 a day storage charge on the vehicle, which I will store for the time equal to the amount of the trade value of the car, which is currently £2700.00, at which time I will sell the vehicle to cover costs and will pursue the remaining debt through the courts.

As the account is now in legal dispute I must inform you that no further money will be paid by us,nor can you legally request any, and no further charges can be added to this account. Due to a harassment of phone calls from your company I feel obliged to inform you that all further contact must now be made via letter, the return address is that which you use for normal correspondence and that has never come in question before so I assume that this request will be forthcoming.

 

 

 

Yours Sincerely

[postggj]

i like your thinking on this but i had better do the letter

you will not be able to reclaim payments as the agreement is only unenforceable

 

but you get to keep the car as its classed as a gift

 

never mention a defective default notice

only pull that rabitt out the hat if a court claim has been issued

[ozzywizard]

I wouldnt use the word illegal for the default letter as it has an high implication and could leave you open to prosicution, it is unlawfull and unenforceable and not adhering to guidelines but not illegal.

[ozzywizard]

Sorry Post, we shared the same typetime. lol.

[postggj]

its ok ozzy

 

glad we think on the same lines

[ims]

Hi post, any how here goes, sent a letter before action to welcome finance, and they replied with the following letter:

 

Dear Sirs,

xxxxxxxxxx

 

FINAL RESPONSE

 

The purpose of this letter is to explain the results of my investigation into your complaint. I am pleased to advise that following my investigation i have concluded that the complaint is justified and i therefore upheld the complaint. What follows is my explination of why i have upheld the complaint and what i propose to do about it.

 

I am sorry that you have had to make this complaint. At welcome financial services we take complaints very seriously and will do our best to resolve any problems as quickly as possible.

 

My understanding of the complaint is:

+ you feel that the agreement is incorrect and therfore unenforceable.

 

If i have misunderstood the complaint, or any aspects of it, please contact me using the details in this letter.

 

I have investigated the complaint by:-

+ reviewing your signed agreement relating to this complaint

 

My findings are

+ the agreement is correct and therefore welcome finance does not acknowledge you claim that it is unenforceable. please find a copy of this agreement enclosed.

 

My conclusion is as follows

 

+ the amount of £6500 for the cash price of the goods is correct (car was actually £6495) the amount of credit is £5500 due to the £1000 cash deposit paid.

+the amount of £9186.58 for the total amount payable is correct. the figure includes both the deposit and the £100 option fee, neither of which were included in the loan. take this £1100 from the figure, and you are left with the £8086.68 which was dispursed for the loan.

+the contractual payments of £224.63, multiplied by the 36 month period is equal to the amount £8086.68.

 

Correct me if im wrong Postgg, but didnt he say in his letter i had my claim was justified but then contradicted what he said by backing the company??