Unwelcome Finance - Vt

Rik_Harris

Please PLEASE someone help.. im going out of my mind.

5 years ago I brought a car on finance from welcome (dumb, I know)

8 months ago as i had paid over 50% of the loan I requested a VT from welcome, I have been repeatedly fobbed off, given the round around, lied to and hung up on.

I then escalated it to threatening a FSO complaint and welcome have finally come back and said that I cant have a VT because I defaulted in 2005 (ive requested proof of this, awaiting in the post)

what I want to ask - is that fair? they claim the default was satisfied (proof being that I had the car for a further 3 years!) but this stays on the account and stops my right to have a VT

is this legal? - what can I do? do I have a case?

many thanks to anyone that responds. I am at my wits end

Rik

~Brock~

What do you mean by 'defaulted in 2005'? Does this mean that you were not paying / in arrears at the time?

If they served you with a default notice at the time and then terminated the agreement then your right to VT disappears, because the agreement has ended. The monies you owe become due immediately.

Even if this is not the case, how much of your current balance is arrears? The reason I ask this is because you say that you took the finance out 5 years ago. If you had been up to date then there wouldn't actually be a balance left outstanding. You need to be aware that the amount payable to VT is half of the total amount payable PLUS any overdue instalments. In your case I suspect that the whole balance may be overdue, but please correct me if this is not correct.

Rik_Harris

~Brock~ wrote: »

What do you mean by 'defaulted in 2005'? Does this mean that you were not paying / in arrears at the time?

If they served you with a default notice at the time and then terminated the agreement then your right to VT disappears, because the agreement has ended. The monies you owe become due immediately.

Even if this is not the case, how much of your current balance is arrears? The reason I ask this is because you say that you took the finance out 5 years ago. If you had been up to date then there wouldn't actually be a balance left outstanding. You need to be aware that the amount payable to VT is half of the total amount payable PLUS any overdue instalments. In your case I suspect that the whole balance may be overdue, but please correct me if this is not correct.

First off, thank you for taking the time to come back to me.

I have at no time been aware of them wanting the full balance immediately - ie i have only ever paid the agreed repayment amount, to which they have never sent any letters demanding payment in full.

I have no idea why i still owe so much money to them - here is a breakdown

car cost £10,500
Date bought 2003
loan amount £18,989.28 (some crazy interest rate eh)
payments £395.21 @ month

Current amount outstanding £6986.24 (but i havent paid them anything since april of this year as that was when i requested the VT)

LilacPixie

how many payments have you paid and how many have still to go???

By my rough calculations 395* 48 payments equals around 19k so i am puzzled why, if you made each payment on time without fail that 5 years on you still have 6k to go if you have not missed any payments.

iolanthe07

[quote=LilacPixie;16454951]how many payments have you paid and how many have still to go???

By my rough calculations 395* 48 payments equals around 19k so i am puzzled why, if you made each payment on time without fail that 5 years on you still have 6k to go if you have not missed any payments. [/quote]

Because of the usurious interest rate being charged. Payments in the early years go mostly towards interest, not capital. OP, why on earth did you sign up to a deal like this? It is crazy.

~Brock~

Until the original contractual term and make up of the loan is made it would be difficult to advise further, but it does appear that the loan may have been running in arrears for some time, and if this is the case then the arrears must be paid upon termination.

LilacPixie

iolanthe07 wrote: »

[quote=LilacPixie;16454951]how many payments have you paid and how many have still to go???

By my rough calculations 395* 48 payments equals around 19k so i am puzzled why, if you made each payment on time without fail that 5 years on you still have 6k to go if you have not missed any payments.

Because of the usurious interest rate being charged. Payments in the early years go mostly towards interest, not capital. OP, why on earth did you sign up to a deal like this? It is crazy.

Iolanthe07. Iwas under the impression that WFS front loaded the interest hence a loan for £10500 mean he was actually paying back 18,989.28. That was the was i read the OP loan details anyway.

iolanthe07

OK. Still must be usurious interest rate though.

Rik_Harris

having a quick look through the account statement it looks like they have 'fined' me quite a bit for late payments and bounced direct debits.

Yes the course of this loan hasnt been the smoothest ever, but my question is (regardless of any outstanding monies)

can i still do a VT (paying the arrears of what was missed etc) if i have a satisfied default notice 3 years ago? - they hadnt started a new agreement, we were still running on the first one.

thanks for everyone helping and sorry i am a nightmare.

LilacPixie

From my understanding you cannot do a VT if you have previously defaulted on the original terms of your agreement. Sorry.

Could you look at claiming back some/all of the penalty charges??

petermb_2

Rik_Harris wrote: »

Please PLEASE someone help.. im going out of my mind.

5 years ago I brought a car on finance from welcome (dumb, I know)

8 months ago as i had paid over 50% of the loan I requested a VT from welcome, I have been repeatedly fobbed off, given the round around, lied to and hung up on.

I then escalated it to threatening a FSO complaint and welcome have finally come back and said that I cant have a VT because I defaulted in 2005 (ive requested proof of this, awaiting in the post)

So back to usual questions
How did you get the loan?
Was there an indendent forecourt involved or did you buy the car directly from Welcome?
Did you include PPI and usual Insurance products?