Welcome threatening court action in 14 days!

[markyboy1968]

Can anyone help? Welcome are taking me to court in 14 days if I don't pay the sum of £25,000.51 before that time! I handed my property back to the first lender in January and it was sold last month with a mortgage shortfall, I have told Welcome the loan is now unsecure and I am asking for it to be included into my existing IVA, they say they won't accept this and want payment in full.

 

I told the guy on the phone that if they don't agree to inclusion in my IVA and take me to court I'm sure the judge will frown upon their actions when its quite clear I'm willing to work with them and pay what I can!

 

I also told him that if they do insist on taking court action and win judgement I might as well declare myself bankrupt!

 

He said that they will give me additional time for Payplan to come up with an acceptable repayment agreement but I wondered if I have a case for PPI mis-sold and if the agreement is acceptable? I enclose copies of both the original agreement and the letter they sent last week.

Court Action.pdf

Agreement.pdf

Edited June 14, 2010 by markyboy1968

[bifferbanks]

Can anyone help? Welcome are taking me to court in 14 days if I don't pay the sum of £25,000.51 before that time! I handed my property back to the first lender in January and it was sold last month with a mortgage shortfall, I have told Welcome the loan is now unsecure and I am asking for it to be included into my existing IVA, they say they won't accept this and want payment in full.

 

I told the guy on the phone that if they don't agree to inclusion in my IVA and take me to court I'm sure the judge will frown upon their actions when its quite clear I'm willing to work with them and pay what I can!

 

I also told him that if they do insist on taking court action and win judgement I might as well declare myself bankrupt!

 

He said that they will give me additional time for Payplan to come up with an acceptable repayment agreement but I wondered if I have a case for PPI mis-sold and if the agreement is acceptable? I enclose copies of both the original agreement and the letter they sent last week.

You'll be probably chased for the shortfall, and welcome on top. Why are you afraid of going bankrupt?.

[markyboy1968]

I am indeed being chased for the shortfall, however the collection agency have been very understanding and have said they will work with Payplan directly to bring the matter to a swift conclusion, welcome on the other hand just won't budge and want the money! I am not afraid of going bankrupt if thats my only option but raising the £600 costs would be a struggle considering all my disposable income is paid into my IVA.

[wannabedebtfreesoon]

Hello and welcome

I'm sorry to hear about your struggles

 

I know it seems difficult but you do still have options available to you.

Firstly I'd just like to point out that your Court Action letter from Welcome is just a default notice. It has been sent to infrom you that you are in arrears and that if you do not rectify the breach in 14 days they MAY take some kind of further action towards you.

 

Secondly never listen to what they have to say on the phone, in fact don't speak to them on the phone at all!!! they are a bunch of bullies and liars and will say all manner of things to scare you into paying and reach their "targets".

If you look in the CAG library you will find the "Harrassment by Telephone" letter which you can send to them to request they contact you in writing only.

 

As for the mortgage shortfall thing there are still options with that too. I found a brilliant website that has loads of useful information and template letters you can send to the mortgage company. It's little known but apparently a lot of mortgage lenders will write off outstanding shortfalls if they believe there is little or no chance of ever getting their money back. It all depends on your circumstances though and I don't want to pry.

 

Have a read through and see how you feel.

 

Debt Factsheets - Mortgage Shortfalls

 

whatever happens you'll get plenty of support here on CAG

[Sand-Dancer0191]

Couple of things I've noticed....

1st This is a dodgy DN..it is asking for payment within 14 days and it dosn't specify a date .

2nd this looks like an agreement done over the phone/internet and I would say that it is unenforcable.It is a multiple agreement with ppi but it dosn't state the repayment figure or interest for the ppi.

They must be listed seperately.

You may well have a valid ppi claim....read other threads for more info and letters etc. AND please take the advice in wannabe's post about the phone,only by post and create a paper trail as your proof (if req'd)

 

Can't see mort indemnity fee on agreement!! Y/N

[markyboy1968]

Couple of things I've noticed....

1st This is a dodgy DN..it is asking for payment within 14 days and it dosn't specify a date .

2nd this looks like an agreement done over the phone/internet and I would say that it is unenforcable.It is a multiple agreement with ppi but it dosn't state the repayment figure or interest for the ppi.

They must be listed seperately.

You may well have a valid ppi claim....read other threads for more info and letters etc. AND please take the advice in wannabe's post about the phone,only by post and create a paper trail as your proof (if req'd)

 

Can't see mort indemnity fee on agreement!! Y/N

 

I don't have morgage indemnity I don't think and yes it was done over the phone via a broker.

What do I need to do now to claim for the PPI and how can I get the agreement proven to be unenforcable? I'm all new to this, thats the procedure I need to follow?

 

I phoned Welcome only once when I first got the letter to let them know about the IVA, they don't have my numbers and I refused to give them one.

 

Can anyone help on what to do next?

 

Wannabe, thanx for the advice, I am going to look at the info you recommended, I ahve to say that the company dealing with the shortfall have been really sympathetic and helpful (maybe they realise that if I haven't got it they can't have it!!) my IVA officer thinks the shortfall can be included into the existing IVA without increasing my payments or payment period. If only I could get welcome off my back I would be able to put my mind at rest

[Sand-Dancer0191]

FSA Factsheet:

 

What we would expect a compliant demands and needs statement for an advised sale to cover (with relevant FSA rule references)

* The customer’s demands and needs (ICOB 4.41®(a)6). For example this should include the advisors assessment of whether the customer has other insurance in place that affects their needs, including employer benefits; the need for the future flexibility if relevant; and so on

 

* Reasons for recommending a particular PPI contract (ICOB 4.41R(1)(c )). This should set out why the recommendation contract suits based on that particular customers needs. For example, it should explain why the recommendation is suitable considering the costs of the contract if relevant (ICOB 4.3.6R(2)7) and the exclusion and limits of the contract (ICOB 4.3.6R(3)).

 

* Demands and needs not met by the recommended contract. The statement of demands and needs is the record that you must keep to show that you have made a suitable recommendation (ICOB 4.4.5G). You should consider recording the demands and needs of the customer the personal recommendation doesn’t meet (ICOB 4.3.1R(3)(b)). For example, if the customer needs future flexibility you may wish to explain the constraints on this ( for example, refunds of premium not being available or not being on pro rata basis.

[Sand-Dancer0191]

Have you been Mis Sold 'PPI misselling'

(Some standard Conditions for PPI)

 

a)Payment Protection Insurance cannot be made a condition of obtaining a loan. (This is the most common reason for mis selling)

b) You are permantley resident within the United Kingdom

c) You are Over 18 and Under 65 at the commencement of your loan, and you will not reach the age of 70 during the insured term.

d) You are in Full time employment – Some policies define Full time employment as being working Over 16 Hours per week and that you have been in full time employment for at least 6 Months prior to the start date of the policy.

e) Pre Excisting Medical Conditions may also Invalidate your Policy

f) Some policies may cover if you are self employed.. Check your T & C first though.

 

** Latest Additions to be added to above **

 

1 You were not in work or self employed at the time of sale

 

2 You were told that you had to take the PPI out at the same time as the loan or not at all

 

3 You were not asked whether you had any other insurance which would cover the loan

 

4 You were not told you could buy PPI elsewhere to cover the loan

 

5 You were sold a policy which had age restrictions which you fell outside of

 

6 You were led to believe that Payment Protection Insurance was compulsory

 

7 You were told that you would stand more chance of getting the loan if you took the Payment Protection Insurance

 

8 It was not explained to you that there were certain exclusions within the policy that could affect you

 

9 You were pressured into buying the PPI

 

10 You paid upfront for the PPI but it was not explained that there were some PPI policies where you could pay monthly

 

11 Your PPI was an upfront premium and you repaid the loan early and received no refund

 

12 You increased your loan and the PPI was increased automatically

 

13 The Terms & Conditions of the small print were not fully explained to you

 

 

You should in the first instance read through the full terms and conditions of your Payment Protection Insurance Policy. If you do not have these I would personally advise you to contact the Insurer and request these. If you do have to contact the Insurer for a copy of the terms and conditions you will need to know the date that you signed up for the policy, Request a copy of the terms and conditions relating to the policy that they had in place on that date.

[theapple]

I am indeed being chased for the shortfall, however the collection agency have been very understanding and have said they will work with Payplan directly to bring the matter to a swift conclusion, welcome on the other hand just won't budge and want the money! I am not afraid of going bankrupt if thats my only option but raising the £600 costs would be a struggle considering all my disposable income is paid into my IVA.

 

stop paying your iva and put it towards bankruptcy??

[markyboy1968]

Can anyone help me determine if the agreement is unenforceable?

 

Thanks

[TheCherry0121]

They only want 2,500 not 25,000 not that that is any help but it sounds a little less

[postggj]

how can you have ppi on a mortage, well second charge in your case.

 

15 year loan,

 

welcomes ppi is as a rule 3 to 5 years so def missold

 

was the loan done direct through welcome or a third patry (broker)

 

as stated, this is a multiple agreement

 

the ppi (insurance) needs its own perscribed terms

 

claim back the ppi and the debt is then history

 

who is the dca

 

lewis or cl finance or the new kidd on the block MKRR

[Major Player]

Post spot on, ppi missold, take em to the cleaners.

 

Also if secured loan and property sold, loan is unsecured and should be part of the IVA, as you have said to them, they accept this and get whatever pence in the £ back that Payplan offer or you go bankrupt and they get nothing.

 

They normally try to instigate legal action before an IVA is in place, if yours is already then they can't go through with this, their only recourse would be to attempt to get an attachment of earnings (Or Arrestment if you are in Scotland) but I know that their solicitors will not touch this ase ifyou have already got your IVA in place so the person that you spoke with either knows nothing or is trying to blag a payment from you, either way they are acting against their own policy. You should tell Payplan they have contacted you directly.

 

Choice is yours to go bankrupt or IVA but if you miss a few months IVA payments then payplan may take you doen this route as both aspects end in them being paid first for being administrators or trustees. I know they are marketed as free service but if you check how much of your payment is actually going toward creditors and how much is going to them for administering the IVA you may be surprised, CCCS are a charitable organisation that I know are much more cost effective you may want to look at them. That said Payplan are one of the better ones

[Sand-Dancer0191]

Spot on Major

[markyboy1968]

Just received a letter from Experto Credite saying they have been instructed by Welcome to revover the balance of £26,914.81 and if payment is not made within seven days they will pass the account to their solicitors who will consider court action. Can anyone please advise on what action I can take with regards to the invalid DN and the agreement looking like its enforcable? Any help would be gratefully appreciated as I am now getting worried. Payplan have advised that they cannot deal with the matters above, they can only ask for a creditors meeting to to see if agreement can be reached to include the above sum in my exisitng IVA.

 

Thanks

[markyboy1968]

how can you have ppi on a mortage, well second charge in your case.

 

15 year loan,

 

welcomes ppi is as a rule 3 to 5 years so def missold

 

was the loan done direct through welcome or a third patry (broker)

 

as stated, this is a multiple agreement

 

the ppi (insurance) needs its own perscribed terms

 

claim back the ppi and the debt is then history

 

who is the dca

 

lewis or cl finance or the new kidd on the block MKRR

 

Experto Credite are the DCA in question, How do I go about claiming back the PPI and how do you mean the debt is then history?

 

Thanks

[beyondhope]

Ive not heard of that DCA before is this them? HERE

 

Also the PPi board is HERE

[markyboy1968]

Ive not heard of that DCA before is this them? HERE

 

Also the PPi board is HERE

 

Yes thats them, thank you for the link to the PPi board, I really need to know if the agreement is unenforceable before I start to reply to the DCA. Can you advise?

 

Thanks