Welcome Finance Agreement

[andys123]

HI.

Have recently been looking at my secured loan agreement with Welcome which is nearly two years old.

The loan amount was for £5000 over 48 months and this is on my loan agreement,

and under 'ther financial information' is an acceptance fee of £235

and a broker fee of £250 along with the 'interest charge' of £3098.41.

My query is, and why I would like some assistance,

why have my 'fees' had interest applied to them for the 48 months,

why is the 'total amount of credit' on my agreement different to that of my 'opening statement' which states £5485.

I can see that the fees have been added to the amount of credit but my agreement clearly states £5000.

On my 'statement of price' it also clearly states amount of credit as £5000

but when everything is broken down to arrive at my monthly payment of £178.82

the 'acceptance and broker fee' have an amount allocated to them,

so for instance,

the acceptance fee of £235 is actually costing £367.68 over the 48 months at a monthly payment of £7.66.

Any help/advice would be appreciated.

Thanks

[pickaname]

Andy you are better off using photobucket to put a copy of your agreement up.

 

There are some serious wizards on here when it comes to deciphering a welcome agreement. :grin:

[andys123]

 

THINK I'VE DONE IT PROPERLY.

Edited March 24, 2010 by andys123

[andys123]

Removed

[andys123]

Have re-jigged the phoos of the agreement now.

[emanevs]

thats a quote, not the actual agreement.

 

Have you done a subject access request, and a cca request?

[andys123]

Two of the photos are their 'statement of price' and the other three are photos of the signed agreement.

[emanevs]

no good. you need to upload the ORIGINAL AGREEMENT.

 

If you havent got it, you need to make a CCA request and Subject Access request together with a postal order for a £1 and £10

[andys123]

See attached agreement and statement of price

 

 

 

WELCOME DOCS pictures by a**********69 - Photobucket

Edited March 24, 2010 by andys123

[andys123]

Hi. Could someone have a look at my agreement to see if they can shed any light on the amount of credit versus the agreement/statement as well as the interest on the arrangement fees?

 

Thanks.

[emanevs]

5000 @ 178.82 @ 48 months = 33.9% apr

 

5485 @ 178.82 @ 48 months = 26.8% apr

 

If you can proove that 'total amount of credit' was in fact £5485' then you will have a potential claim for unenforceability due to the total amount of credit is wrong.

[andys123]

My opening balance as the statement shows was £5485, not the £5000 as per the agreement.

[emanevs]

As long as you have official docs to proove that then your agreement is unenforceable.

[andys123]

Yes, will upload a statement later to show that.

 

What are my next steps?

[emanevs]

put the account in dispute

[andys123]

http://i898.photobucket.com/albums/ac183/............./WELCOME%20DOCS/DSC03622.jpg

 

Here is my statement clearly showing that the opening balance was £5485 and not £5000 and with yet another APR. If I'm to put the account into 'dispute', what is the legal basis for this...apart from the obvious?

[andys123]

http://i898.photobucket.com/albums/ac183/andysaunders69/WELCOME%20DOCS/DSC03622.jpg

 

Here is my statement clearly showing that the opening balance was £5485 and not £5000 and with yet another APR. If I'm to put the account into 'dispute', what is the legal basis for this...apart from the obvious?

[andys123]

bump

[emanevs]

Account in Dispute Letters - Consumer Wiki

[andys123]

Thanks for link but don't think the 'charges' template is the right one, do I need one that is disputing the credit agreement is wrong?

[emanevs]

Have a read through this, correct data/enter dates where applicable.

 

Dear Sir/Madam

 

I am writing to you with regard to the above account. I have come across what I believe and can prove to be a breach of the Consumer Credit Act 1974 hence rendering the above account unenforceable.

 

I have discovered from your companies paperwork that whilst my agreement shows an acceptance fee of £235 that is calculated into the overall loan total your company has failed to disclose on this document that the £235 has had an interest rate applied. This contravenes s.61 of the Consumer Credit Act 1974 and has been proved in court through Wilson V First County Trust. In addition, you have clearly stated to me that the “total amount of credit” provided was in fact £5485. I did not sign and Consumer Credit Agreement with a total amount of credit of £5485. I also believe that £5485 @ 178.82 @ 48 months = 26.8% apr, and not 33.9% as per the agreement.

 

I would also say that I feel your company has deliberately mislead their representations as the acceptance fee is clearly shown as a separate figure on the credit agreement I will be referring this matter to the Financial Services Authority as I deem this to be a direct attempt to mislead the customer.

 

Therefore as this account is now unenforceable I will be cancelling my future direct debits to your company with immediate effect and request a refund of all payments made to your company before this date.

 

Furthermore, despite sending you a formal Subject Access Request on the XXXXX, I still have not have received the necessary documents.

 

I would like to remind you that the 40 days for supplying information after our Subject Access Request ends on the XXXXXX.

 

In addition, if you fail to meet your obligation under the act a report will be sent to the information commissioner and you will face investigation.

 

Furthermore, I am sure you are now aware due to the sheer amount of these letters you receive plus the massive media attention, that every time you receive one of these letters it will be followed up by a request for a full refund of any disproportionate penalty charges and associated charges, this will give you 14 days to do so before court action. Please note if I have to take court action to reclaim these charges then I will do so. Therefore, to save yourselves some time and money, if you could just refund all these charges dating back six years immediately you will not incur the court fees or your solicitors fees and the 8% interest I am entitled to claim.

 

As this account is now in dispute you may not demand any payment on the account, nor am I obliged to offer any payment. You may not add further interest or charges to the above account nor are you to pass this account to a third party.

Lastly you may not register any information in respect of this account with a credit reference agency nor are you allowed to issue a default with regards to this account.

 

If my request is not complied with within 14 days I will have no further option to file this matter in the courts.

 

I also draw to your attention the recent Office Of Fair Trading (OFT). “Lenders must not mislead borrowers that their debts are enforceable, when in fact they are not, the Office of Fair Trading (OFT) says.”

 

Yours Faithfully

[andys123]

Thanks emanevs, shall I also include the 'broker fee' of £285 when quoting the figures?

• So to clarify, my signed agreement is for £5000.
  
• My initial statement shows the amount of credit given to be £5485.
  
• The interest applied to the account refers to the £5485.
  
• My 'statement of price' shows a repayment figure which includes the 'broker/acceptance' fees (including interest) but based on a loan of £5000
  

Is their mistake as really as straightforward as that and can I get the money back? There is the other issue of it being a secured loan with a charge on my house, how will this be affected. I have read on other threads that the charge would be removed if the loan is unenforcable, is this correct?

 

Do I send the dispute to the Nottingham H/O?

Do I need to quote anything else?

How are they likely to respond?

 

Thanks for the letter.

[jamesf104]

Hi Andys123, that was me. I have had the charge removed because the agreement was not properly executed. If the agreement is not properly executed then the security instrument is not properly executed either and has to be returned immediately Read sec 105 and 106 which clearly states this. They tried to hold onto the security but my legal argument won the day. It works, but I would only say with regard to ours that WF agreed non execution (after some pressure), you will need to convince them that this is the situation in your case. It obviously is but I guess until they agree you probably will not move forward easily on this point.

[postggj]

can youscan the agreement and upload via photobucket

 

cant see to good

[andys123]

WELCOME DOCS pictures by a*********69 - Photobucket

 

Thanks 'James'. Did you get the agreement to be unenforcable? How long did it take and what was their initial response?

 

'Post' - have uploaded again.

 

Thanks.

Edited March 24, 2010 by andys123