Welcome VT of Hire Purchase - Default??

lleigh

Hi

i took out a Hire Purchase agreement with Welcome last Feb.the payments were far too high so i went for Voluntary Terminiation in november/december. it was agreed and on the 10th december i gave my car back and paid the amount that they quoted. as it was not even a year of having the car i knew that i would have to make a payment of some kind. i received letters confirming the payment had been made that the account was now closed as the agreement was terminated and there was nothing outstanding.

i was advised by my bank to get a recent credit report as they refused me an account upgrade and couldn't understand why. (i hadn't done so previously as i had one last november! and had been really good for the last year) I was shocked to find that against my welcome finance section it stated that i had defaulted on my agreement and owed welcome nearly £4000!!!

i have sent them a copy of my credit file relating to them and a letter explaining what went on in december, i have just had a phone call from a guy who doesn't know what he's talking about so i thought i should get some advice. Welcome are saying that if you VT you are defaulting on the loan, they applied it to my account in january this year nearly a month after i handed the car back!! is this true??

i never received any letters saying i was defaulting on my loan or that by going through the VT procedure it would register a default against my name.

any suggestions on what i should do now?

thanks

standupguy

You are right - you spoke to a guy who did not what he was talking about or just fobbing you off with a load of bull....t

You exercised a clause on the agreement and there should be no detriment to you.

The only thing they could put on your credit file is a "vt" marker on the account to show that you voluntary terminated the agreement.

You need to make a complaint to Welcome to get this information on your credit file lifted.

You can complain direct to the Financial Ombudsman service if they can not or will not resolve this quickly.

CLAPTON

you are entitled to VT a HP agreement if half the money is repaid.

how much was the agreeement for (including interest) and how much did you pay?

tictax

this is standard for it to show as default but it will also state voluntary termination.

You may find that in the future other hp companies are reluctant to give you a hp agreement as you have previously vt'd an agreement. I know you are only exercising your rights under the CCA but this is not uncommon.

speedbird1973

Sorry Tic Tax you're wrong.

A default is put on file if the T&C of an agreement haven't been met. By paying half the value of the whole agreement and giving the car back you're acting within the terms of the contract. A VT will show on your file NOT a default.

It shouldn't impact you getting any credit - other than possibly another HP agreement.

lleigh

Hi

I just want to say thanks to you all for your replies. i got back to welcome who now confirm that it was an error on their part and they have written to experian and equifax to get the default taken off. i'm still not happy as it's caused detriment to my credit rating but what can you do!!

thanks again!:T