Welcome Finance Secured Loan - charge removed

[GR McD]

About 5 years or so ago, I took out a secured loan from Welcome, can't remember what for now.

 

 

My circumstances deteriorated after I became pregnant and my husband lost his job so hardly any money coming in.

This meant I struggled with my mortgage who refused to help me.

 

 

In the end I faced reposession and as it looked like the Council would try to get out of helping me if made homeless.

 

 

I made the hard decision to sell house to a buy to let company as it was only 1 bedroom house and because we had a child we needed bigger house but wouldn't get a mortgage for it.

If I didn't own a house I hoped I could get social housing, which I did in the end.

 

 

Welcome agreed to remove the charge for half the loan and said the balance would be turned into a personal loan which they never did.

They sent a collector out and said they had paperwork from the solicitor agreeing to this, but I didn't

when asked for them to send it all to me they didn't send anything.

 

 

I moved house and they traced me and sent another chasing letter at least 18 months later, I ignored it and they didn't follow up until recently.

 

My question is

what is their legal standing as no new loan agreement was made, and original agreement was secured on a property I don't own.

 

 

Can they still take me to court?

 

Thanks

[Lea_HTH]

Yes, they can still take you to court. When the property was sold, any outstanding amount not covered by the sale of the property became an unsecured loan. They don't actually need you to sign any further paperwork to make it unsecured, so not quite sure why they're bothering with that.