Welcome Finance - grrrrrr - advice needed :-)

erique7

Hello!

Up until August last year I had a lovely full time job which included a car allowance, so I had got a car stupidly through Welcome Finance as my credit rating wasn't great and I desperately needed a reliable car.

Now I am back to being self employed after being made redundant and am trying to voluntary terminate the car agreement as I can longer realistically afford the payments.

So after much back and forth with the bloomin useless VT department at Welcome I have been given a termination figure - now to the annoying part and my questions!

The figure includes over £900 to pay off in full the shortfall insurance and mechanical breakdown insurance - I have previously cancelled other insurance policies and had to pay a cancellation fee but am shocked that I have to pay the entire insurance amount including the interest! At the time of buying the car I did feel quite pressured into getting these policies and was not told that the cancellation period was only 30 days - I was told that was the cooling off period. So do I have any come back on this?? I know people have been reclaiming there PPI but do I have a chance with the shortfall and mechanical breakdown policies???


Also the amount I need to pay to reach the agreed termination figure is quite alot and obviously I dont have pots of cash sitting about (wish I did!) and I wondered if anyone else had been through a voluntary termination with welcome and if you were able to come to some payment agreement afterwards. As yet I've not put the wheels in motion as I wanted to try and answer these questions first and I know I also have the joy of having the rac having to come out and check over the car.

Thanks for reading this and for any replies!

RAS

Up she goes.

10past6

erique7 wrote: »

do I have a chance with the shortfall and mechanical breakdown policies???

If it was front loaded, I would think you have every right to at least raise a complaint with them.

erique7

Sorry I'm not sure what you mean by 'front loaded' can you explain it for me :-)

Thanks

Thriftysaver

Hi erique7

Front loaded is when they charge you the insurance amount at the beginning of the agreement which then accrues interest over the term ie charge for insurance £1500 ( which would read £25 pm ).Add this to your car price (amount borrowed) which would accrue interest over 60 months accruing interest on the full £1500 from the outset. Hope this makes sense
Thrifty

erique7

:-)

bump