Welcome have offered me compensation.

[BIGLOUIS]

I had a personal loan with Welcome which it took out in 2007. It finished 5 months ago - fully paid up. I have been thinking of going the PPI route since then but Welcome forestalled me!

 

About 3 weeks ago theyir complaints dept sent me a letter in which they say they have looked into my case (without my ever asking them to) and that the PPI they sold me was "unsuitable" for me. Because of my age when I took it out (I was over 60) it is probable I could not have made a claim on it even had I needed to.

 

In other words I am in possession of a letter from Welcome in which they admit in black and white that the PPI was mis-sold and unsuitable!

 

I also realise it was mis-sold in other ways because I was made to feel at the time that they would only give me the loan if I took the PPI. Also I was in a job where I was entitled to full sick pay for 6 months and half pay for 3 further months, so its arguable I never needed it.

 

The letter stated they intended to offer me "compensation". Yesterday I recieved an offer of the full amount of PPI I paid, plus the 8% interest and an offer of a further £100 for "inconvenience". A total of some £1516.

 

This offer in effect puts me back to a position where I would have been had I not been mis-sold the PPI.

 

I was surprised to say the least as I have read many of the postings here and noted other members struggles with Welcome to get their PPI refunded.

 

Finance companies do not generally go around offering people compensation in this way unless they have to.

 

My loan with Welcome is fully paid up and I dont owe them anything,

 

This all seems too good to be true and I am left wondering is there something I will have missed out on here by accepting this offer?

 

I havnt signed anything yet.

[Fester Tester]

Excellent. I'd write back thanking them for their kind offer, and asking when you might expect payment.

 

After checking that their figures are correct, of course. It does sound as if they have you mistaken for somebody else who HAS complained. Check also that the account number relates to your account.

[cityredgirl]

BigLouis I live in the manchester area and im awaiting a PPI refund maybe you havebeen sent my settlement I can only hope x

[BIGLOUIS]

Been reading a few threads on this forum and now realise things may not be quite so straightforward as having obtained a "settlement" without asking for it.

 

To begin with this is not the first loan I have had from Welcome.

 

I took out a 1st loan circa 2005 and that also had PPI. I dont have the documents still for this but realise I could obtain them via a subject access request. Ist loan was about 50% paid when they offered me a "top up". This was efected by taking out a second loan (the one they have offered me a settlement for) and then paying off the first loan with that and the remaining funds were mine to spend.

 

This is no doubt a familiar story to those reading it.

 

I have now realised from scanning other threads of members in a similar position that I may have seen seriously scammed by "rolling over" the PPI and ensuing interest from the 1st loan into the second.

 

The offer I have on the table from Welcome makes no mention of this first loan or the PPI I paid and I am now wondering if they have made me this "offer" because I am, in fact, entitled to a great deal wore than just £1500 PPI from loan number 2. Obviously if I settle for what they have offered me now I cant then go back and "investigate" what they might owe me for the first loan. Can I??

 

I guess I have to balance out these 2 arguments;

 

Is it best to look further into what I might be owed and then the possibility of a long drawn out case that goes on months or years and lots of effort and correspondance. Or shall I settle for the £1500 I never expected

which can be in my bank account within a couple of weeks.

 

I am a pensioner so a £1500 windfall would come in very handy for me.

[BIGLOUIS]

Fester - I have checked the account number and its correct.

 

The initial letter I got from them was from their "complaints" dept and was worded in this way (I paraphrase)

 

"I have been looking into the account details of past customers who may not have been treated fairly. Because of your age at the time you took out the loan you may not have been able to make a claim on the policy. I am therefore concerned that the PPI which was sold to you with this loan may have been unsuitable for your needs. I would like to offer you compensation ... Please confirm your address details and I will get back to you."

[pompeyfaith]

STOP you have hit the nail on the head the reason they have made this offer to you is for one reason only DAMAGE LIMITATION Welcome are in a lot of trouble at the moment and are short of cash i can bet that you have paid a lot of contractual interest on there policies and that is due back to you to as well as the ppi and all interest paid on the first loan

[BIGLOUIS]

So would I be correct in assuming my next step should be a subject access request to get all the documents relating to loan no 1?

[pompeyfaith]

Correct sar them for everything they hold about you agreements, policy documents, comms logs etc the lot

 

You are in a good situation in that they have admitted the financial wrong in black and white so if they do not play ball fairly forget the fos as that will take 12 mths plus just go straight to court as that will give you a fairer outcome

[Fester Tester]

Personally, I'd get that £1500 banked. And THEN I would chase them for the rest. Simply due to the fact that they have admitted without coercion that they mis-sold you PPI, you will be onto a winner with the other account.

 

I've been chasing them for nearly 2 years now as I am after contractual interest. So do be warned that it is a long, hard struggle if this is what you would be wanting to do.

 

I can't afford to risk taking them to court however. As at the moment, they owe me somewhere between £50-60K. And that is ramping up at a scary rate. So I need to wait for them to try to grasp the initiative. I suspect they'll be ice-skating in Hades before that happens.

[BIGLOUIS]

Fester - thanks for your advice, thats what I was going to do.

 

I will get the £1500 banked and then hit them with the subject access request by the way I have "only just recalled" that I had a previous loan from them. I know it will be a long road ao I may as well get something on account.

 

Better in my coffers than theirs!

[pompeyfaith]

I will get the £1500 banked and then hit them with the Subject access request by the way I have "only just recalled" that I had a previous loan from them. I know it will be a long road ao I may as well get something on account.

 

 

One problem with that is they will most certainly make you sign a full and final and this will exclude you from making a further claim

 

Been there seen it happen, you need to tread very carefully with this and always seek guidance before you do anything even if you choose not to take that guidance.

 

As I have said the FOS is the wrong path for you as they will not entertain the contractual interest you have paid they will also expect you to sign an acceptance form without you knowing what welcomes offer is.

 

You need to get all info relating to all the accounts you have had with welcome via an S.A.R once you have this infomation it will then put you in a better position to act.

 

I really do think the courts is you best option given that welcome have admitted the financial wrong that is a fantastic letter so back it up.

 

With the court route it is quicker will take no more than 9 mths the FOS will take anything from 9 mths to 2 yrs

 

The courts will also entertain the contractual interest aswell as 8% statutory interest.

 

So for now in short get that S.A.R sent off recorded delivery and have a good read of the PPI threads while you are waiting.

 

PF

[pompeyfaith]

Once you have the S.A.R info I can then help you work out what you are owed.

 

If it comes to under £5000 that's great as you can use the small claims route if it is over £5000 then it will be fast track or multi track.

 

But remember you have to thing the bigger picture in that £1500 may seem a lot of money to many but it is very likely you claim would be doble that if not more.

 

This is because contractual interest does indeed mount up very quickly.

 

PF

[Fester Tester]

Aye, ensure that any full and final relates simply to that one account.

 

The danger with dragging this out too long is the fact that it's pretty inevitable Welcome will fold completely in the not too distant future. So whoever takes on their books will possibly become a new dragon to fight. And I would imagine PPI claimants will be right at the bottom of any list of Welcome's creditors.

 

It's a gamble whichever way you go. But I think P is right to mention the contractual interest angle. Just remember it's in restitution and not compensation.

[pompeyfaith]

Aye, ensure that any full and final relates simply to that one account.

 

ay you what never as welcome was offering only the 8% stat interest and you can safely bet that his interest rate was a lot higher than that.

 

This as I have said is a damage limitation exercise they know that the claim is worth a lot more, but they are relying on a consumers lack of knowledge.

 

Welcome will shortly be going down the pan with cattles and do not have much money certainly not enough to fairly redress every person they have fleeced.