Welcome Finance PPI claim - WFS going into liquidadtion

[Octian]

Have had two loans with WFS - one pre 2005, one post 2005.

The latter PPI claim was settled as an offset of a claim against me.

I agreed not to make claim against WFS.

The DJ said he couldn't include the pre-2005 PPI but said I needed to make a separate claim.

 

I did so in April,

but received a letter back today saying there is no money left and WFS is going into liquidation soon

and they have been advised not to pay claims.

 

 

I would need to claim against any liquidator when appointed but I am likely to only receive a few pence in the pound.

 

My question is

- would it be advisable to take out a county court claim directly against WFS.

We are talking about £3000.

Are they likely to pay it ?

Also. can a claim be made against the insurance provider rather than WFS ?

 

Thanks.

[dx100uk]

you go after the ins provider .

 

 

dx

[Octian]

Thanks DX. Do you know if anyone has been sucessful in claiming from an insurer ? It was underwritten by Norwich Union, but sold by WFS. NU will probably say they didn't do the mis-selling it was WFS won't they ?

 

Thanks

[dx100uk]

no several wins on welcome loans ins from Norwich Union

use our search cag box of the red toolbar

yu issue might be your date though.

 

 

have you sent welcome an sar yet?

[Octian]

I sent a SAR but they could only send me the agreement.

I raised it with WFS first in 2010 but had a long drawn out court case which I eventually won based on PPI for the later loan.

 

DJ said he couldn't make a judgement on the earlier one and I'd have to raise it with WFS directly.

 

Loan was 2003.

Case was concluded in court on 1st April

I sent a claim to WFS within a few days.

 

Just got reply today so I don't think time will be an issue

- it's not me that has caused the delays.

 

WFS took nearly three years to find enough paperwork from sending the initial claim, to actually going to court, but ignorred previous issues relating to PPI prior to that.

 

I assume the claim to NU will use the same arguement that WFS have already accepted in todays letter

- It said yes we agreed we mis-sold PPI but we've no money to pay compensation.

[dx100uk]

Aviva are NU

 

 

https://cse.google.co.uk/cse?cx=partner-pub-0964707606882478:652l7hswbgv&ie=UTF-8&q=welcome+PPI+Norwich+union&sa=Search+CAG#gsc.tab=0&gsc.q=welcome%20PPI%20Norwich%20union&gsc.page=1

[Octian]

OK - letter received from Aviva today -

 

Having made enquiries with WFS, our policy administrators and carefully considering the information obtained,

I regret to advise that Aviva is not responsible for the sale of your insurance.

 

This is because your policy was sold after WFS became a member of the General Insurance Standards Council (GISC)

This means WFS are responsible for investigating any sales after that date.

To clarify, in the event that you choose to make a complaint to the Ombudsman about Aviva,

we will ask them to dismiss the matter on the basis that we have no responsibility for the sale of this PPI policy.

 

At the same time I sent the letter to Aviva, I also sent a 7 day 'letter before action' to WFS.

 

Reply received yesterday saying they aim to respond within 20 working days.

Spoke to a friend who is a licensed insolvency practitioner.

 

He was astounded that WFS are saying they are not paying out any liabities as they are expecting to enter liquidation in the next twelve months.

 

He says if they are still trading under any circumstances it's illegal and in fact it's a liquidators job to collect outstanding accounts from WFS debtors.

 

He suggested serving a statutory demand and see what they do.

 

Any ideas chaps ?

[Octian]

Any advice ? Seriously thinking about making a county court claim or statutory demand to WFS.

[dx100uk]

bad idea IMHO.

 

 

why not ring the FOS and ask advice?

 

 

dx

[Octian]

Thanks dx100uk,

 

I'll ring the FOS tomorrow

 

the letter from WFS said they had informed the FOS of it's position.

 

Reason I was thinking about a court summons or statutory demand is that WFS seem to pay off court judgements.

 

Demands are cheap to issue but expensive to follow through, court claims are more expensive.

 

If they continue to trade being unable to meet their obligations (IE - insolvent), they are trading illegally.

[sillygirl1]

WFS have NOT continued to trade for some time now - so that is a bit of a red herring. What they and their liquidators are doing is consolidating their books and maximising any cash flow they can get from existing loans.