Welcome finance trouble looming in the future

gaznkaz08

we had a welcome finance loan for 10k in oct 03 as a final try to get ourselves out of trouble, but it didn't work so in apr 04 we decided to sell our house and start a fresh. When we came to sell the solicitor found that the welcome loan was actually secured on the property, not something we realised and the solicitor said they hadn't seen one attached in that way before.

we didn't have enough equity left in the house to clear the loan as they had put all the intrest on to the total making it around the 16k mark

so basically we couldn't get out of the house. After lots of discussions and pleading with them that we'd only borrowed 10k we managed to get them accept 7.5k which was every last penny from the sale to enable us to sell it

we asked them on numerous occasions for proof of this payment and never got it, we have moved a few times since and just left it alone. WE have never heard anything from them infact since apr 04

we did a credit report a few months ago and was shocked to see the welcome loan on there with payments from dec04- aug06 and then a default in jan07 and the default amount of 13k

they've spread the lump some we gave them to release the house making monthly payments on the account,

Are they going to come after this 13k, as far as we knew the 7.5k was an end to the matter

angel_islington

Do you have written confirmation of their agreement to accept the 7.5k?

gaznkaz08

angel_islington wrote: »

Do you have written confirmation of their agreement to accept the 7.5k?

don't know yet , i have just got hold of the solicitor that dealt with it and she is gonna dig out the file to see what we have, it was actually £6942.05 paid to them in july 09 she could see on the screen

angel_islington

gaznkaz08 wrote: »

don't know yet , i have just got hold of the solicitor that dealt with it and she is gonna dig out the file to see what we have, it was actually £6942.05 paid to them in july 09 she could see on the screen

Sorry for the delayed reply. The fact that your solicitor can see that you've paid them just shy of 7k doesn't mean that welcome finance accepted that amount to totally clear the outstanding debt, it just means that you paid that amount at that time. Fingers crossed she can find written acceptance from them that was the case. If you have that then you are sorted and can get your solicitor to send them a letter demanding an explanation of their input on your credit file and a demand to have them remove it.

Actually, just reading your first post again, your credit file shows you made payments to them between December 2004 and August 2006? Seems like Welcome Finance have a few questions to answer.

gaznkaz08

angel_islington wrote: »

Sorry for the delayed reply. The fact that your solicitor can see that you've paid them just shy of 7k doesn't mean that welcome finance accepted that amount to totally clear the outstanding debt, it just means that you paid that amount at that time. Fingers crossed she can find written acceptance from them that was the case. If you have that then you are sorted and can get your solicitor to send them a letter demanding an explanation of their input on your credit file and a demand to have them remove it.

Actually, just reading your first post again, your credit file shows you made payments to them between December 2004 and August 2006? Seems like Welcome Finance have a few questions to answer.

she actually found a letter saying that they would lift the charge against the property but we would still be contractually obliged to keep repaying the debt, so i guess we're screwed.


can they just swap a secured loan to unsecured like that or would there need to be changes made to the cca or even a new one produced??

angel_islington

I'm not an expert but I can't see how they can change the terms of the agreement without cancelling it and making a new one.

jonesMUFCforever

angel_islington wrote: »

I'm not an expert but I can't see how they can change the terms of the agreement without cancelling it and making a new one.

.............But a customer can in order to sell the property the loan is secured on???????????
It's called a variation.

gaznkaz08

angel_islington wrote: »

I'm not an expert but I can't see how they can change the terms of the agreement without cancelling it and making a new one.

jonesMUFCforever wrote: »

.............But a customer can in order to sell the property the loan is secured on???????????
It's called a variation.

i didn't change it though , changing the agreement's not in my power

jonesMUFCforever

But the lender did and it must have been due to you asking or the sale would not have gone through.

gaznkaz08

jonesMUFCforever wrote: »

But the lender did and it must have been due to you asking or the sale would not have gone through.

yes thats correct, but should there have been a proper process eg. new cca or rewritten one?? etc etc

jonesMUFCforever

gaznkaz08 wrote: »

yes thats correct, but should there have been a proper process eg. new cca or rewritten one?? etc etc

You would have had to sign something yes (perhaps through your solicitor) varying the original agreement.
If you are thinking that you can not pay what is outstanding on a technicality I don't think it will work.