Welcome Finance - Fees

[streetgang]

Hi all,

 

I am just coming to the end of a 48 month agreement with Welcome Finance, from whom i bought a car in 2003.

During that time I have had financial problems and ended up missing payments a few times and making reduced payments at others.

Anyway, they have calculated around £900 in fees, late payments, phone calls etc. Most of the fees are between £5 and £20 spread over the period of the loan. I recently brought the account up to date, and should be finsished in Nov 2007 but it seems that I will have to keep paying to March 2008.

I see numerous threads from people trying to reclaim these charges, but can anyone tell me if they have been successful. I cant see how it costs £20 to contact someone or write a computer generated letter.

 

Please let me know

thanks

[kennythecelt]

Hi Streetgang

 

Issue a SAR requesting full history from them ie statements and copy of CCA.

Then proceed with an LBA.

 

Keep us posted please on your progress and good luck!!

[streetgang]

Hi Kenny, i already have the full statement history, which is how I know the level of fees. I also have a copy of the CCA agreement.

 

What is an LBA ? a Letter Before Action ?

 

I already successfully claimed £620 back from Lloyds in bank charges so I know that it can be done, and I certainly dont want to give Welcome any more money than i need to.

£900 in charges over 4 yrs is shocking ! Do you know if they generally pay back charges or are they likely to take it to the wire ?

 

Cheers

[streetgang]

Hi, I would like some advice please.

I took out a hire purchase agreement to buy a car. During the period of the loan I missed some repayments and was charged over £500 on an original £5000 loan (not including the 20% interest).

I have written to the company concerned and asked them to explain the penalty charges and if they cant explain that they are actual costs then they should refund them.

Well, I have repayed the original loan and I am continuing to repay the charges.

Can I formally tell them that i am withholding future payments as I feel the account is in dispute? I really dont want to keep paying them as I am sure I will find it difficult to get the money back.

 

Does anyone know of any legal precedents that I can use to withhold the payment and am i on firm ground ?!?

Thanks

[Rtech]

Good morning.I have no experience of this sort of thing,but I hope the foolowing may help:-

Someone also had a problem which they put under Legalities,and it was missed,by the super people who give advice,so suspect putting this on General Debt,may get you advice quicker.

I was involved in something similar to your facts,and advised the creditor that I was didputing the account,and therefore under the OFT's Debt Guidance Directions,they should not pass it on to a DCA etc.they may do this,but at least they would be treading on thin ice.

Maybe a S.A.R (Subject Access Request)for statements etc to prove the 'penalty charges' and to advise of the disputed amount,would be the next step.

Someone no doubt brighter than I will answer you soon.Good luck

[streetgang]

Thanks for the reply and useful advice.

 

Have already received the statements and although they just say "fee" and no other details I have learnt from other posts that they relate to telephone calls and letters (automatically generated and never signed of course!).

So I know what the fees relate to.

Interested to know more about the oft debt guidance guidelines, do you have any more detail?

Thanks again

[streetgang]

Hi, I would like some advice please.

I took out a hire purchase agreement to buy a car. During the period of the loan I missed some repayments and was charged over £500 on an original £5000 loan (not including the 20% interest).

I have written to the company concerned and asked them to explain the penalty charges and if they cant explain that they are actual costs then they should refund them.

Well, I have repayed the original loan and I am continuing to repay the charges.

Can I formally tell them that i am withholding future payments as I feel the account is in dispute? I really dont want to keep paying them as I am sure I will find it difficult to get the money back.

 

Does anyone know of any legal precedents that I can use to withhold the payment and am i on firm ground ?!?

Thanks

[Rtech]

Hi,Pls find Guidelines as requested:-

 

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

[noomill060]

Penalty charges are unlawful and unenforceable. You can claim back what you have paid, plus interest.

 

Stop paying send a 14 day Letter Before Action and then start a small claim to recover what you have paid, in the same way as you would reclaim bank charges.

[noomill060]

They may tell you that consider this "fee" fair and legal, but they cannot attempt to enforce it, or pass it to a debt collector while the amount is in dispute and the subject of your legal action.

[noomill060]

You should calculate the extra interest you have been scammed into paying using this simple gizmo- Compound interest calculator

 

Just enter the date of the "fee" on your statement, 12 month "rest"

and the interest rate you are paying.

 

This (charge+interest) will be be the principal of your claim.

 

This is the amount you will tell them you want back

 

If they dont play ball then- small claim. Add your court fee and calculate a further 8% county court interest and add that to your claim.

[huggles]

a note of caution about not paying - they don't care for the rules and might default your credit file anyway and they're a devil to remove

[noomill060]

They may indeed, but not while the account was in legally in dispute. However if they did, you would make removal of this and damages for it, part of your terms of settlement.

[streetgang]

Thanks everyone for your responses.

 

I have calculated that at the moment I have paid around £100 more than I should have, as the original loan has just stopped.

The penalty charges etc are being added, and that it why I now need to pay up to next March.

I want to make sure that they dont wait until next March by which time I will have paid all the penalty charges and would rather "head them off at the pass".

Will let you know what there response is.

Cheers

[streetgang]

Hi all, sorry to hijack your thread, but i am currently in disagreement with Welcome Finance re charges to my account. They are willing to settle on a reduced level of charges, with around 30% of the original charges removed. They are saying that the majority of the charges are to do with returned direct debit fees (£20 a go) and interest charges (compound interest charges of between £157 for arrears up to a given date, about 18 months ago) and then around £35 up to the point we got the account up to date. They are still adding interest charges on the arrears they say we owe (which is wholey made up of charges themselves).

They also say that the disbursal of fees is an acceptance fee and covers all costs associated with completing the loan with Welcome Finance. Just a point, but does that not mean that this should cover the cost incurred by them to contact me to collect money etc ?

 

My main questions are:

1. Are they correct, that if the disbursal fee relates to the administration of the loan throughout the contract they can add interest to it?

2. They claim that £20 relates to missed payments, and that this is legal.

 

Can anyone give me any advice, as I am thinking I might be better off agreeing to their offer of reduced charges.

 

Does anyone know when the high court is likely to come back on penalty charges?

 

Thanks for your time, happy christmas and blessing for 2008.

[postggj]

hi street gang and welcome, excuse the pun.

pt2537 is correct, starting your own thread as you have now done will give specific advice to your needs.

as you have been reading my thread you will know i am in court in four weeks to decide some of these matters

keep reading peoples threads and replies and you will realise what you are up against.

welcome will ignore you and push all the way trying to put you off your dispute.

i was once in your shoes before i found this forum and it is welcome now on the back foot

all i can say is good luck, and i will be following your thread.

some exelent people will be along shortly to give you help and support, but this will not be easy, and the out come will take time, mine so far six months

[steven4064]

Hi streetgang

 

1. Are they correct, that if the disbursal fee relates to the administration of the loan throughout the contract they can add interest to it?

No, they are not allowed to do this. The case Wilson & Others v Secretary of State for Industry (Appellant) is authority that this is contrary to common law.

2. They claim that £20 relates to missed payments, and that this is legal.

They claim all their charges are legal. Claiming they are legal does not make them so! The £20 fee is not lawful. (subtle difference which I am not sure I completely understand even though I have had it explained to me )

Can anyone give me any advice, as I am thinking I might be better off agreeing to their offer of reduced charges.

My advice (and lots others' on this site) would be to stick with it and get all the charges back

Does anyone know when the high court is likely to come back on penalty charges?

The test case does not apply to loans so, whatever the outcome, the case will have no bearing on your claim.

 

Happy Christmas and All the Best (including beating Welcome) for 2008.

[Guest nez69]

i have just had just short of £1000 in charged returned but i am still in dispute with the whole agreement.

 

so yes, keep on at them!

[steven4064]

What nez said

[streetgang]

Thanks, I am going to draft a letter to Welcome and will let you know what my points will be before I send it off.....all help appreciated from everyone.

As I say, will let you know my arguments before I send off.

and

[streetgang]

Thanks, I am going to draft a letter to Welcome and will let you know what my points will be before I send it off.....all help appreciated from everyone.

As I say, will let you know my arguments before I send off.

and thanks again.

[streetgang]

Hi all, I am a customer of Welcome Finance and I am currently trying to reclaim what I think are unfair charges; £20 here and there for quick telephone calls during the day (they know my wife and I both work) or mass produced letters (unsigned and very easy to produce at low cost).

 

I must admit, i was most impressed by the comment from markas1. As he really says, times are tough for everyone, and those who took easy credit are now finding it very tough - i should now, i am one.

That said, you learn from your mistakes and I am trying desperately to survive and to pay the bills to my creditors while keeping a roof over our heads.

Yes, we signed the agreements and took the loan that enabled us to buy a car, and yes we need to pay the repayments or the car shouldnt belong to us. That said, an apr of +30% gives Welcome a good enough return on their initial outlay without adding punitive charges left right and centre.

Hope all works out well for everyone here, and i shall let you know how my case goes.

best wishes

Scott