Offering Short Settlments

[Major Player]

Hi All, I have seen a number if posts that are considering offering short settlements to Welcome so thought I would start a thread to let you know what they will look at when seeing if they will accept an offer.

 

First of all, offers need to have some "Science" behind them, the way they look at offers in general is that they look at how much cash you have borrowed, what you r balance is, how many charges have been applied and then deduct off the payments you have made;

 

Worked simplisitic example is if you borrowed £12k over 5 years, your balance is £15k, you are 2 years in and have paid back £6k worth of payments and have been charged £1k then an offer of £10k would probably be accepted.

 

Therefore when offering a short settlement, make sure that you let them know how much you have already paid back when making the offer.

 

If its a secured loan - specify that you want the debt settled and the charge removed (I always find that if you say that the first mortgage company is going to repossess they look at offers more favourabley). They add a bit more analysis by seeing how much your house is worth, how much you owe the first mortgage company and if there is enough equity left in the property to settle off Welcome in full they would be UNLIKELY to accept the short settlement - Their little minds think that they will be settled in full if you sell the house or get repossessed (Nice ey!)

 

If its unsecured then basically do as has been recommended and say that payments are unaffordable (Don't give them info on this or agree to reduce payments but DO make sure that the loan is shown as settled off on your credit file).

 

Hp short settlements are trickier, I would treat them as unsecured but say the car is now worthless - It costs Welcome about £300 to collect a car so offer to drop it off to the local branch to get this reduction too..

 

Finally depending where your agreement is in the Welcome network. their may be advantages to take of their desperation of accepting the offer.

 

If you are in no arrears or very few, offer 50% or less of the calculated figure. (Operational branches, LMBs)

 

If you are in a high level of arrears, offer 25% of the calculated figure(Local colections unit, special collections units).

 

Hope this helps, any questions feel free to ask!

[ozzywizard]

Exelent and usefull post Major and thanks.

[beyondhope]

Thanks for that

[tedmaul72]

I can't get Welcome to move from 35% off and that's despite them having no agreement and admitting they have no agreement.

 

Borrowed £2,000 - repaid £3,900. Welcome still insist I owe an additional £1,100. They will take 35% off as a 'short settlement' but that's it.

 

Any advice?

[ozzywizard]

Yes, the account is in dispute right ? and you have sent the dispute letter ? . so now sit back and dont pay anything. everytime they write to you either ignore or reply with your proposed offer starting "As this account is in official dispute and has been since xxxxxx I offer you a full and final offer of xxxx"

[tedmaul72]

Haven't placed the account officially in dispute. I just tell the guy that phones every month that I'm still waiting on Compliance sorting out the agreement. I did make an offer in writing 3 or 4 months ago of around 30% of the alleged balance. They didn't respond in writing but the guy on the phone said they would be looking for 65/75%. So that's kind of where we are at present.

 

I need to start playing hardball.

[ozzywizard]

Yes you do Ted, no more phone conversations is a good start. do everything in writing. make your offer in writing and also send this letter.

 

Welcome financial services

Compliance Department

Ruddington fields business park

Ruddington

Nottingham

NG11 6NZ

 

Account In Dispute

 

Ref:

 

Dear Sir/Madam

 

DO NOT IGNORE THIS LETTER - LITIGATION ADVICE

 

Thank you for your letter of xx/xx/xx , the contents of which have been noted.

 

You have failed to respond to my legal request to supply me a true copy of the original Consumer Credit Agreement for the above account.

 

On the **DATE** I wrote to you requesting a copy of the credit agreement and other information under the Consumer Credit Act 1974 (Sections 77-79).

 

On **DATE** a member of your staff signed for delivery of my written request and I have an electronic proof of delivery showing their signature and the date.

 

To date you have failed to comply with these requests in any way, whether by confirmation of receipt of the request or by supplying the requested documents.

 

These documents I requested should be readily available as proof of your legal right to collect this account under the Consumer Credit Act 1974.

 

In my letter of the **DATE** I made a formal request for a copy of the signed, executed credit agreement for the above account under section 77(1) of the Consumer Credit Act 1974. In addition a full statement of this account should have been sent to me detailing all debits and credits to the account.

 

Furthermore, you are aware that the Consumer Credit Act allows 12 working days for a request for a true copy of a credit agreement to be carried out before your client enters into a default situation.

 

This period has expired.

 

As you are no doubt aware section 77(6) states:

 

If the creditor fails to comply with Subsection (1)

 

(a) He is not entitled , while the default continues, to enforce the agreement.

 

 

Therefore this account has become unenforceable at law.

 

You have failed to comply with a lawful request for a true, signed copy of the said agreement and other relevant documents mentioned in it, failed to send a full statement of the account and failed to provide any of the documentation requested.

 

Consequentially any legal action you pursue will be averred as both UNLAWFUL and VEXATIOUS.

 

Furthermore I shall counterclaim that any such action constitutes unlawful harassment.

 

Please note you may also consider this letter as a statutory notice under section 10 of the Data Protection Act to cease processing any data in relation to this account with immediate effect.

 

This means you must remove all information regarding this account from your own internal records and from my records with any credit reference agencies.

 

Should you refuse to comply, you must within 21 days provide me with a detailed breakdown of your reasoning behind continuing to process my data.

 

It is not sufficient to simply state that you have a ‘legal right’; You must outline your reasoning in this matter and state upon which legislation this reasoning depends.

 

Should you not respond within 14 days I expect that this means you agree to remove all such data.

 

Furthermore you should be aware that a creditor is not permitted to take ANY Action against an account whilst it remains in dispute.

 

The lack of a credit agreement is a very clear dispute and as such the following applies.

You may not demand any payment on the account, nor am I obliged to offer any payment to you.

You may not add further interest or any charges to the account.

You may not pass the account to a third party.

You may not register any information in respect of the account with any credit reference agency.

You may not issue a default notice related to the account.

 

 

I reserve the right to report your actions to any such regulatory authorities as I see fit. You have 14 days from receiving this letter to contact me with your intentions to resolve this matter which is now a formal complaint.

 

Despite my letter regarding ANY communication from your company, which stated that I require ALL communications in writing, your telephone calls continue.

 

This behaviour constitutes harassment; the letters stated quite clearly to you that I require ALL communications in writing for future use. Do not telephone me again - remove any telephone numbers you hold for me from your systems.

 

Your telephone calls are in breach of the Office of Fair Trading guidelines. If you continue with them after the receipt of this letter an official complaint, together with a log recording the times and frequency of the calls will be passed both to that office and to the Trading Standards office. For your information note that ALL telephone calls are taped.

 

This type of debt collection method is contrary to the ‘Administration of Justice Act 1970’ in that it is intended to cause alarm and distress to the recipient. Your methods will not be tolerated. A formal complaint, containing copies of all correspondence including yours, has now been submitted to the relevant authorities. This will be relevant to questions of your fitness to hold a licence under the Consumer Credit Act, whether or not it results in a prosecution.

 

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

 

Communicate in writing and ONLY in writing, your telephone calls will NOT be answered.

 

HOWEVER, CALLS WILL TRIGGER COMPLAINTS TO THE REGULATORY BODIES.

 

I would appreciate your due diligence in this matter.

 

I look forward to hearing from you in writing.

 

Yours faithfully

Print name do not sign & Edit to suit.

[ozzywizard]

FINAL SETTLEMENT OFFER.

 

 

Let it go somthing like this......

 

WELCOME FINANCIAL SERVICE

COMPLIANCE

RUDDINGTON FIELD BUSINESS PARK

RUDDINGTON

NOTTINGHAM

NG11 6NZ

 

Dear Sir/Madam

 

 

FULL AND FINAL SETTLEMENT OFFER

 

Re: 4563210025897412

 

We write with reference to the money which you are claiming on the above account that is now in official dispute.

 

As a gesture of my goodwill I wish to offer xxxxxx as an ex−gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

 

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

 

Payment can be made within 14 days of receiving your written agreement of this offer and method of payment.

 

We look forward to receiving your reply within 14 days of this letter.

 

Yours faithfully

 

 

send recorded delivery.

__________________

[tedmaul72]

Ozzy, thanks very much for this. I'm going to send this today.

 

I wonder if you could advise me on something, though?

 

I currently have a PPI claim with Welcome on this account. They've came to a figure of £XXX but are offering only half of this as a refund claiming a rebate was already applied to the account - although they do not have an agreement to support this.

 

Is it possible for me to simultaneously claim PPI refund and place account in dispute? Or should I abandon the claim and simply dispute the account?

 

I just wonder if I'm leaving myself open with the PPI claim.

[ozzywizard]

Okies Ted this is going a little deep lol, so best to open your own thread so we can follow your progress and not hijack Majors thread. but to answer your question your account being placed in dispute and my letters do NOT affect your PPI claim and you can continue this claim as per norm.

 

As for the rebate being applied to the account, to be honest they probably have on a rewrite so could be true but do not take their word for it. send them a SAR with the fee of 10 pounds (knock the 10 pounds of your settlement figure lol) this gives them 40 days to send all your statements and info etc showing the rebate.

[tedmaul72]

Fair enough, Ozzy. I'd just reply by saying that I've already done the SAR to Welcome. The rewrite balance started at higher than the original loan repayable balance and there is no mention of any PPI rebate. Nor is there is any of the statements. Nor is there any rewrite agreement detailing the precise amount of PPI rebate.

[Major Player]

Ted, just quickly, they will say 65% as they are starting high and will work down, if they say 65% offer 35% then they will probably accept 50%

[tedmaul72]

Ted, just quickly, they will say 65% as they are starting high and will work down, if they say 65% offer 35% then they will probably accept 50%

 

Thanks, Major. I'll give it a try and report back.

[pcoventry]

I can't get Welcome to move from 35% off and that's despite them having no agreement and admitting they have no agreement.

 

Borrowed £2,000 - repaid £3,900. Welcome still insist I owe an additional £1,100. They will take 35% off as a 'short settlement' but that's it.

 

Any advice?

 

Sorry and your compaining because...? I owe welcome £14k and they won't take off a single penny for me. I'd be in heaven if I could get 35% off!

[tedmaul72]

Sorry and your compaining because...? I owe welcome £14k and they won't take off a single penny for me. I'd be in heaven if I could get 35% off!

 

I'm 'complaining' because I've paid nearly double what I borrowed, I dispute the balance, they can't produce an agreement and are being vague as to the PPI amounts. In those circumstances, they do not appear to have much leverage but are acting as though they do.

 

I'm sorry for your own situation.

[RALALU]

pcoventry - have you missed any payments on your loan - im assuming not.

 

As soon as you do you would then be eligible for a reduction (obviously i wouldnt reccommend doing this but its just the stupid way welcome work, the more payments you miss the larger the reduction you get.