Welcome Finance PPI Reclaim Success? I Think Not!

K1RST1E_2

Evening All,

I have been posting my 'grievances' on different threads but don't want to hijack one with my long-winded explanation!

Basically, in March 2008 I cancelled the PPI on my loan. This totalled to £978.63. I was told by the Customer Representative that the full amount had been refunded, my monthly payments would drop to £105.97 and a new credit agreement would be sent out in the post to me. I recieved the new credit agreement and carried on paying £155.95 a month to clear the balance quicker.

The Original Agreement - Total Amount Repayable £5614.20

£2978.63 for Total Amount of Credit (£978.63 for Insurances and £2000.00 Cash Advance)

£2635.57 for Total Charge of Credit (£75.00 Acceptance Fee and £2560.57 for Interest)

The New Agreement - Total Amount Repayable £3814.97

£2000.00 for Total Amount of Credit (£2000.00 Cash Advance)

£1814.97 for Total Charge of Credit (£75.00 Acceptance Fee and £1739.97 for Interest)

In September 2008, I requested a settlement figure from Welcome Finance expecting it to be less than £1000.00 but was mortified when it was still over £2000.00. I queried this as the loan hadn't changed despite the PPI being removed months prior to this. I got a final response letter and was referred to the FOS. I submitted my case in October 2008 querying why the PPI had never been removed and why I still owe more than I should do at that point in the loan.

After being passed around various departments within the FOS, my claim was progressed through the 'mis-sold PPI' route and Welcome Finance agreed to recalculate the loan as if the PPI had never been applied. I thought this was a great victory until this week, when I found out what I was being refunded!

To date, up until I stopped payments in September 2009 as that is when the agreement ran to, I paid a total of £5020.40 which leaves a shortfall of £593.80 owing to Welcome Finance assuming the PPI remains. There is a difference of £1799.23 between the two agreements. If I deduct what I owe to Welcome Finance, that leaves a refund of £1205.43 excluding the 8% interest and £200 compensation.

However, a letter and a cheque from Welcome Finance arrived today for £248.49. The breakdown is as follows:

PPI Refund (premium + interest - rebate) £1296.44
8% Interest £198.95
Total £1495.39

Less Amount Used to Clear Arrears of £1446.90 = £48.49
Compensation for Distress and Inconvenience = £200.00

How do they come to the conclusion that I have arrears of £1495.39? I have calculated all of the 'capitalisation' charges for the 36 monthly loan term and they equate to £3360.78 yet the interest was calculated at the start of the loan as being £2560.57.

This explains £800.21 of the arrears which I can only assume that the remaining £695.18 is in fees such as letters, telephone calls etc. I have spoken to the adjudicator at the FOS about this and my dissatisfaction with the offer but he doesn't seem to want to help.

I have never had a loan before so is it common for a company to calculate the interest at the start of the loan but charge you monthly anyway resulting in a bigger amount to pay off then you initially agreed to?

I'm slowly losing the will to live with this one! :mad:

tanim

ok hope i can help im working for a claims company its portal claims check them out read reviews there really good in claming back ppi and they wont charge you any up front fees my names tanim so get in touch.

marshallka

tanim wrote: »

ok hope i can help im working for a claims company its portal claims check them out read reviews there really good in claming back ppi and they wont charge you any up front fees my names tanim so get in touch.

Why can't you help here, on site??

maxdp

tanim wrote: »

ok hope i can help im working for a claims company its portal claims check them out read reviews there really good in claming back ppi and they wont charge you any up front fees my names tanim so get in touch.

So why should people go with you if they can claim back in exactly the same way as you would and keep all the money with FREE help from this site. Why should they pay you an introducers fee.

Pay to advertise on Google Adwords like other companies do.

amersall

:D go girls ;):cool: maxdp and marshalka:A:A good on ya, my thoughts too :money:

amersall

TO ALL NEWBIES. TAKE A LOOK AT THESE!!!!!!!!!

http://www.bbc.co.uk/wales/x-ray/sites/allarticles/updates/091005_credit_management.shtml

news.bbc.co.uk/1/hi/programmes/moneybox/8538925.stm
these companys really need to be taken to task
i am sick of being called by these companys, they soon hang up when i tell them i did it myself (with help from the people on here) for the price of a couple of stamps. give it a go for your self, you wont regret it

tez_c

I had a similar problem with Freedom Finance and althought they refused to talk to me they were hastily willing to speak to a PPI Claims company though

superwhy

K1RST1E wrote: »

Evening All,

I have been posting my 'grievances' on different threads but don't want to hijack one with my long-winded explanation!

Basically, in March 2008 I cancelled the PPI on my loan. This totalled to £978.63. I was told by the Customer Representative that the full amount had been refunded, my monthly payments would drop to £105.97 and a new credit agreement would be sent out in the post to me. I recieved the new credit agreement and carried on paying £155.95 a month to clear the balance quicker.

The Original Agreement - Total Amount Repayable £5614.20

£2978.63 for Total Amount of Credit (£978.63 for Insurances and £2000.00 Cash Advance)

£2635.57 for Total Charge of Credit (£75.00 Acceptance Fee and £2560.57 for Interest)

The New Agreement - Total Amount Repayable £3814.97

£2000.00 for Total Amount of Credit (£2000.00 Cash Advance)

£1814.97 for Total Charge of Credit (£75.00 Acceptance Fee and £1739.97 for Interest)

In September 2008, I requested a settlement figure from Welcome Finance expecting it to be less than £1000.00 but was mortified when it was still over £2000.00. I queried this as the loan hadn't changed despite the PPI being removed months prior to this. I got a final response letter and was referred to the FOS. I submitted my case in October 2008 querying why the PPI had never been removed and why I still owe more than I should do at that point in the loan.

After being passed around various departments within the FOS, my claim was progressed through the 'mis-sold PPI' route and Welcome Finance agreed to recalculate the loan as if the PPI had never been applied. I thought this was a great victory until this week, when I found out what I was being refunded!

To date, up until I stopped payments in September 2009 as that is when the agreement ran to, I paid a total of £5020.40 which leaves a shortfall of £593.80 owing to Welcome Finance assuming the PPI remains. There is a difference of £1799.23 between the two agreements. If I deduct what I owe to Welcome Finance, that leaves a refund of £1205.43 excluding the 8% interest and £200 compensation.

However, a letter and a cheque from Welcome Finance arrived today for £248.49. The breakdown is as follows:

PPI Refund (premium + interest - rebate) £1296.44
8% Interest £198.95
Total £1495.39

Less Amount Used to Clear Arrears of £1446.90 = £48.49
Compensation for Distress and Inconvenience = £200.00

How do they come to the conclusion that I have arrears of £1495.39? I have calculated all of the 'capitalisation' charges for the 36 monthly loan term and they equate to £3360.78 yet the interest was calculated at the start of the loan as being £2560.57.

This explains £800.21 of the arrears which I can only assume that the remaining £695.18 is in fees such as letters, telephone calls etc. I have spoken to the adjudicator at the FOS about this and my dissatisfaction with the offer but he doesn't seem to want to help.

I have never had a loan before so is it common for a company to calculate the interest at the start of the loan but charge you monthly anyway resulting in a bigger amount to pay off then you initially agreed to?

I'm slowly losing the will to live with this one! :mad:

Kirsty, they shouldn't charge you interest at the start of the loan & then charge monthly interest aswell. When I took my loan out with Welcome they stated an interst amount at the start of the loan & that was all. Have you foned Welcome up and explained to them that they've charged you interest twice? If thats no help perhaps you could ask the FOS for a different adjudicator to handle your case as your current adjudicator is not to your satisfaction.
Hope you get a good outcome soon.x

amersall

tanim wrote: »

ok hope i can help im working for a claims company its portal claims check them out read reviews there really good in claming back ppi and they wont charge you any up front fees my names tanim so get in touch.

give the op a reason why she should use a claims co when she has already done the hard work herself?

amersall

tez_c wrote: »

I had a similar problem with Freedom Finance and althought they refused to talk to me they were hastily willing to speak to a PPI Claims company though

http://www.bbc.co.uk/wales/x-ray/sites/allarticles/updates/091005_credit_management.shtml
news.bbc.co.uk/1/hi/programmes/moneybox/8538925.stm

K1RST1E_2

Thanks guys

I contacted the adjudicator at the FOS and he basically said the same as what you have advised; contact Welcome and speak to them about the double interest charge.

I'm just deciding whether or not to phone or write a letter ... I guess calling would be quicker!

Thanks again all for your help!