Welcome Finance and PPI

tinkebelle

My problem is this.....I bought a car through Welcome Finance in July 2005 and just 1 year later became disabled.Luckily I had also bought the PPI which has made all payments up untill July 2009 which SHOULD of been the last payment date.
BUT.....Welcome Finance didnt take their first payment untill Sept 2005....so I paid for PPI that covered the first 2 months when I didnt need to and now Welcome Finance are sending me letters demanding the £550 outstanding and threatening to take the car back if it is not paid in full.....any help would be appreciated

tinkebelle

Bump


Hello again.......Does anyone have any advice on this for me please

R0bert_Sterling

Why didn't they take the first 2 Months payments?
Did you ring them to ask?

What happened to the money you put aside to make those payments?

This could have gone horribly pear shaped from the start. If the first two payments were not made, you could have found yourself 2 Months in arrears before the first payment was made, the charges would have been astronomical !!

from what you have said, you weren't disabled when the payments were due so you should have been making them "normally" out of your own pocket.


Did the ppi say it covered xx payments (the way loan terms are quoted) or did it stipulate it ended in Sep 09?

Regshoe

Not sure about the situation regarding the PPI duration - I would have thought it would be linked to the loan end date, but not really certain.

Regarding the first payment date I can comment though, Welcome set the first repayment date anywhere up to 45 days from when you receive the loan, so if you took the loan in the latter half of July then I would expect your first payment date to be in September. I believe this also went for HP loans where you don't actually receive any cash. Makes sense for a personal/secured loan, possibly not as much for a HP, but I doubt there is anything to stop them doing this.

I would look into why the PPI wasn't matched to the repayment terms though and carefully check the wording of the PPI agreement.

tinkebelle

Thank you both for your answers.
1) My account has never been in arrears and every payment was made on time so I havent incurred any charges.
2) My argument is this......WHY did the PPI start on 25th July when the first payment wasnt taken untill 28th Sept?.Surely this is wrong?
I would of thought the sensible way to do it would be to start the PPI on the same date as payments started.
The PPI was set for a specific length of time not for the duration of the loan.
I have no argument with the PPI provider.....they have paid for my car after all,but I DO have a problem with Welcome Finance and the way they set this up from day 1.
Does anyone think I have any chance of getting round this with Welcome?
I really cant afford to pay them what they are asking for.I live on Incapacity Benefit and DLA,and I really thought this had been taken care of by the PPI.

CLAPTON

why didn't you need PPI for the first 2 months... if you have become disabled in the first two months presumably you would have expected to be covered.

the fact that you had a payment holiday for the first two months doesn't mean you don't need to pay the PPI insurance just as you were charged interest on the money for that period.

what exactly does your credit agreement say about the number of payments?

Roscoe27

I had a similar experience.
I took out the loan with PPI on 22 dec 2006. Was made redundant oct 30th 2009, PPI paid for the dec 1st payment, but then sent a letter saying the agreement finished on the 21st dec 2009, 3 years after the initial agreement, and so would not pay the final repayment.
I wrote back saying since my first loan repayment wasnt until feb 1st 2007, what was covered in the first 5 weeks? Received a phone call from the insurance company, who agreed to pay the final payment.

A strongly worded letter mentioning the FSA ma be just what you need.

Ross