Welcome Finance : IMPORTANT - FOR ALL THOSE WITH WELCOME PPI COMPLAINTS

[slgsue]

I have been speaking to the FSCS. The application forms that are being sent out for Welcome Finance customers are different to those sent out for other companies and are written in such a way that it allows any refund to be taken from outstanding balances. I have had 3 loans and my mother 2 so have personal interest in getting my money back, but I have an outstanding loan with NO arrears and have been told that any refund will be applied to this. If you can tell me where it says they cant do this I would be very very happy to hear as I could seriously use that money!

[winston73]

http://fsahandbook.info/FSA/html/handbook/COMP

 

These are the rules the FSCS use that are made by the FSA when dealing with compensation.

 

In the letter recieved for ppi compensation, the FSCS states :

 

" Under the FSCS Rules, amounts of compensation payable will be first set off against any outstanding loan balances you may owe

to WFSL, which could mean that you do not receive any or enough compensation to meet the fees of any representative. "

 

 

I have had a look through the rule book, but i'm not to sure where it mentions that it can do that... I'm wondering if anyone else has looked into this and could point out where it states this...

 

Thanks.

[lem01uk]

I too have a PPI claim against Welscum. I am also hanging fire in returning the FSCS form as I DO NOT agree to my compensation being offset against my current loan. I have never missed a payment, but I am now cancelling my direct debit and sending them a letter stating that if they are going to offset any compensation I might as well have some arrears. This also means that I get some money back from them.

 

I too could seriously do with the compensation as it would pay off other debt that I have at the moment.

 

Will keep looking to see how everyone is getting on.

[sick of welcomw]

I have been speaking to the FSCS. The application forms that are being sent out for Welcome Finance customers are different to those sent out for other companies and are written in such a way that it allows any refund to be taken from outstanding balances. I have had 3 loans and my mother 2 so have personal interest in getting my money back, but I have an outstanding loan with NO arrears and have been told that any refund will be applied to this. If you can tell me where it says they cant do this I would be very very happy to hear as I could seriously use that money!

 

i wondered why when i got my £3500 ppi refund it came off the balance of my hp loan and not into my own bank account even though my arrears where £850 they still took all the refund

[Hacked_Off]

interesting! What does this mean for me? I was at the early stages of a claim with them but never heard back. they did make n offer but i asked for a breakdown of how they got to this figur. Which wa snever replied to. i have not had any contact with them since. I cant remember the last time i made a payment either. So whats left of the balance will be charges etc. Ive not recieved a compo form either. :s

 

i borrowed 1250.00 and the last figur eof what i owe them was 5,000!!!!!!!! AFTER years of payments!

Edited April 24, 2011 by Hacked_Off

[luluspice]

I got my FSCS Decision letter today.

As per discussions the compensation will be set off against arrears ..surprise surprise!!!

I noticed they only took into account PPI that was added to the original agreement, not the Lifecare 24 & homecare 24, which added another £350.00 to loan amount plus interest! so I have emailed and said no way. I also want them to remove Defaults on Credit file as this account was in dispute.

I have no idea where they got the figures as WFS have sent me various restructured agreements over the past 2 years. Each time they have tried to sneak in insurances or juggle the figures in such a way that I would still end up paying what they figured was original amount including PPI!! I have never agreed to any of it.

Now I do not know what about the balance outstanding? The Decision letter advises balance outstanding higher than original loan & does not take off £5000.00 already paid! Are they incapable of being straight?? Smoke & mirrors me thinks!!!

[42man]

You are right to request the 'Lifecare and Homecare' back but they are under no obligation to remove the defaults due to this High Court Case - McGuffick vs RBS - http://www.bailii.org/ew/cases/EWHC/Comm/2009/2386.html

[MrZ]

The question going around in the forum is "Is one obligated to accept the offer and compensation from the FSCS?" This questions is relevant as it seems the FSCS are awarding in many cases the compensation under the condition its applied to the loan, regardless of arrears or no arrears.

 

My opinion is that no, one is not obligatated to accept the offer by the FSCS. The FSCS's primary object is to ensure that monies available for claims are disbursed in such a way to afford everyone with a claim some sort of compensation. In other words to try to get as much bang for the buck(quid). The logic being that if one still owes money on a loan, that by awarding the compensation to offset that debt, that Welcome then have monies left to pay those who no longer have a debt.

 

I understand the logic. However, the FSCS have no enforcement authority. We all know that Welcome are owned by Cattles. Cattles still have money. They have Lewis Group, Cl-Finance, Howard Cohen, et al. Although "Welcome" may not have any money, Cattles do. One could argue that if money is owed, one could pursue Cattles, or that Catlles might have to cough it up.

 

I'm not sure about the legality of pursuing a parent company for judgments against a subsidary, so I invite other opinions onthe matter.

[luluspice]

Thanks 42man, however, my gripe is not to do with unenforcability etc, my gripe is that had WFS honoured the ppi then there would not have been arrears when I tried to claim due to ill health.Only then to find out that I was not covered under the policy - only hubby as he was first named, yet would not quilify as was self employed with pre- existing health conditions! So if no missed payments then no default? Just another chapter in the book of WFS disasters!!

[wannabedebtfreesoon]

http://www.telegraph.co.uk/finance/personalfinance/comment/8502046/PPI-a-rotten-product-that-made-the-banks-billions.html

[hammyhound]

claim for all the insurance crap

 

ppi

gap

breakdown

guardex

nuclear fall out

 

When I enquired with the FSCS about making a claim for our GAP insurance they said this only relates to PPI and nothing else. Does anyone know different. Should I just ask welcome for an application form.

 

HH

[kregrs]

So, if you have outstanding finance with Welcome, and are claiming the PPI back off a previously settled loan, will they apply the refund from the settled account to the outstanding account?