Welcome Finance - Agreement in dispute, now they want me to catch up on payments

[steven4064]

The most usual reason for people being in this position is exactly as RI says - change of circumstances. If the DCA takes you to court, this may actually be the best result because the court will not force you to pay what you cannot afford. You can apply for a time order, backed up by a statement of income and expenditure. There will then be a court order confirming the payments which prevents the DCA coming back for more or hassling you.

 

Using the CCA to buy some time is a valid thing to do and you can also use it to make sure that the DCA does everything by the book. Most of them are very sloppy and,as you say, don't care a jot. What often happens if you use the CCA and insist that they comply fully is that they suddenly realise that they are going to have to work for their money and send the account back to the original creditor. THen it all starts again a couple of weeks later. With some accounts I deal with, I have dealt with 4 or 5 DCAs, one after the other.

[Sixx526]

Hi Steven, I agree, when they have to do some work for their money they become reticent in advancing their demands. How would I calculate the PPI claim from my previous post? Is this still in the works? Thanks, Stuart

[Sixx526]

Hi all, just received a call from Welcome. The lady who called was very polite asking whether I had received their mail. I said I had but that it was incomplete and as such I had posted a letter highlighting which documents are not present. She asked me what they were, which I told her. She said - wait for it - not to send a letter as she could sort this out right now. Of course I said the letter had been sent already. Strangely enough I got a call, yesterday, from Legal Recoveries & Collections. The guy asked for my details to which I told him to write to me. He refused to tell me what account this is about (considering Welcome is the only one I'm having problems with, I can only assume it's been handed over). Thanks to you guys I do feel a little more in control and as if I'm dealing with this froma 'legitimate' position. Can't thank you all enough... Sixx

[BRIGADIER2JCS]

Let us know when LR &C send their 1st bit of Junk mail.

[Sixx526]

Will do brigadier - thanks. Steve, just got home to find the the refinancing took place on 23 July 08, rather than April. Sorry. Sixx

[BRIGADIER2JCS]

NO probs!!!

[Alloyz1]

Hi Royal Irish:

Although the judges are allowing a recon agreement to be accepted, you still only pay what you can afford if you entered into the agreement. If you didn't enter into the agreement, there would be no evidence of use of the money purported to have been borrowed so you would not need to pay. So really you are still protected. DCA still can not do a single thing without a judges say so and they still take into account what is affordable.

 

I guess this route is to ensure it is a can't pay system rather than won't pay system (sorry to quote John Major!!!).

 

CAG is all about protection and not avoidance and it seems the courts are going down a similar route.

[BRIGADIER2JCS]

Of course correct and the better it is for all if this stance by the courts flourishes, it is fair and balanced.

 

Brig.

[steven4064]

Here are the figures calculated using the OFT DualCalc program.

 

1. The first loan was £23774 payable as 120 payments of £425. This gives an APR of 19.3%

 

2. As the PPI was mis-sold, it should not be included, so the first loan should have been £20000 payable as 120 payments of £357.53 (APR of 19.3%)

 

3. You made 12 payments, so, with statutory rebate, the settlement amount for the first loan at the end of 1 year would have been £19486.68

 

4. However, you overpaid because you paid £425 rather than £357.53 each month. Your overpayment was £809.64

 

5. The proper settlement figure is therefore £18677.04 (£19486.68 - £809.64)

 

This is what the second loan amount should have been.

 

You have two choices:

 

EITHER keep the second loan as it is and demand that they repay you the difference between the loan amount and the real settlement figure, that is £3525.96

 

OR demand that they recalculate the second loan for the proper settlement figure of £18677.04

 

This second option should lead to a loan with repayments of £201.04 (with an adjustment for the fact that you have been paying £239 per month for 3 years)

[Sixx526]

Thanks so much Steve. I will follow up with you guys when I get any communication from WF. I may need a little help with the statements...

[Sixx526]

Hi guys, back again. I have received the original and rewritten loan agreements from Welcome, as well as the account statement, though this only relates to the rewritten loan agreement (as such the account will still remain in dispute until they give me a complete statement of account. I am writing to them, also requesting

• · Cash or cheque refund of all “outside call charges”, “letter charges”, “reject cr/dr card payment fees” and “default sum fee interest”, as well as all interest/ capitalisation resulting from the aforementioned as of April 2007, rather than July 2008 when the agreement was rewritten, including the calculations of how you arrived at the figure(s). This primarily because if the loan was for the right amount monthly payments would have been less and so I would not have missed any payments.
  
  

• · Cash or cheque for all overpayments (with interest) you have received from me as of April 2007, rather than July 2008 when the agreement was rewritten, including the calculations of how you arrived at the figure(s). This due to the higher monthly installments due to the PPI being added to the rewritten agreement when PPI was declined at the rewrite.
  
  

• · Cash or cheque for all interest/ capitalisation related to the higher loan amount including the calculations of how you arrived at the figure(s).
  

I have also spoken with the FSCS re: the missold PPI.

 

I have two questions: the first relates to whether the above seems reasonable to request? The second relates to the acceptance fee for the secured loan. Now, I paid an acceptance fee for the original loan. Though I did not receive any additional funds for the rewritten loan, can they charge me for this again?

 

Thanks in advance!