Welcome Finance settlement

liltinks78

Hi all,
Just looking for some advice. I took out a loan in 2007 with Welcome Finance for £750.00 and then a further top up loan of £450.00. ( I was desperate and had exhausted all other forms of lending). I pay £160 a month to them and although I pay monthly religously now, in 2008 I missed a few payments.
I have just been on the phone to them and informed that my debt stands at £3473.83 (yikes - although I knew it was close to this from my credit file). I've done a bit of googling and understand the company is to be wound up in the next few months.
The lady on the phone has proposed I pay a reduced one off settlement figure of £2257.99. Which I am sure you will agree is substanial. If I completely squeezed my belt for the next few weeks, I could probably raise this, although it would mean making slightly smaller payments to my other creditors. I've done a snowball and it came out that after my provident loans I should tackle Welcome, owing to the huge APR.
Do you think it is wise to settle before they close, or just continue my monthly installment and hope that a debt collector purchasing the debt would maybe offer something better? Any advice on this subject would be very welcomed.

Tixy

Hi

There have been various topics on the subject of settling welcome debts, with some people reporting good successes.

Firstly though are you sure the balance is correct? Its a high figure compared to the amount borrowed, although the APR is high this still seems hideous. What charges have been applied to the account? have you looked to see if you could claim any of these back.

If you decide to go for a settlement you can always try negotiating the amount you offer - they have offered you a 65% settlement, no reason you couldn't try offering less (you can always increase the offer if they refues and you choose to do so).

Whatever you do its important to make sure that the payment is a full & final payment and that you have that in writing from them - worth reading this for useful info and a template letter - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

You could also look on the Loans board here on MSE to see what other percentage offers people have had accepted.

Also did you have PPI on the loan? have you looked into whether it may have been missold? if so have you tried making a reclaim?

liltinks78

hello again, I've just been reading on consumer action group that they have been offering 50 % settlements, so am going to try and push my luck I think, as this has been hanging around my neck for so long. I wrote to them about the PPI about a year ago and received a very snotty letter back saying it was sold correctly and that I hadn't a leg to stand on. With regards to the charges and the amount still owing, I must have paid them well over £3000 already, but summer 2008, I missed about 6 payments, they charge for rejected direct debits, every phone call, and sent someone around to my house almost weekly. They also charged me for putting a trace on me despite knowing exactly where I live, and phoned previous employers, my husband and family!
I am thinking of offering 1736 and seeing if they will accept over two months as will be such a relief to be rid of them. I was just going to phone, but will now do as you say and write to ensure they agree to amend my credit record. The bizarre thing is my credit record shows no missed payments. Suppose I should be glad of that at least!
thankyou for your advice, it does mean handing on to the provident for longer than I'd hoped - ebay here we come!

GeorgeUK

Don't forget to make sure you get it in writing that it is a full and final settlement - not a partial or short settlement. The important part is that you have something in writing that says you have no further liability for the debt.

redwood66

Pay it off asap. You will save alot of interest in the long run. Welcome still has at least 2 years and your loan would be paid off anyway and cost you alot of interest on the way. Do the sensible thing. Get rid of your debt.

liltinks78

redwood66 wrote: »

Pay it off asap. You will save alot of interest in the long run. Welcome still has at least 2 years and your loan would be paid off anyway and cost you alot of interest on the way. Do the sensible thing. Get rid of your debt.

Thanks for the advice on this, I phoned them yesterday to test the water with regards to a further reduced settlement and at first was told they would only accept the reduced figure if it was a long standing car or secured loan. Then the operative asked me what I was thinking of offering, she asked her boss and he said no, but she advised me to put it in writing to her and she would pass it to head office. I intend to still make this months payment and pray for the reduced settlement as I only have until march 3rd to make their figure. The annoying thing is I've been offered several reduced full and finals from other companies for other debts, all around the same time - which I will lose out on, but the welcome is the worst debt - so must be first to go. She hinted that they will be passing debts to The Lewis Group, also owned by Cattles.

Hippocampus

I'd hit back for the PPI. Just because you were bullied into taking it along with the loan, then bullied into accepting their pathetic lies in reply to your complaint, doesn't mean they won't cave in when you go back for another pop.

In your favour, the FOS uphold at least 92% of PPI complaints against this shower.