ppi offer recevied from Welcome Finance.advice needed.

spursn17

i have recived a letter from Welcome finace in response to sending them my ppi claim. original loan - 1000 over 36 months paying 76.00 a month.taken out in june 08 up to date. think the current balance is like 1100. They have sent a letter saying that they can ''reschedule'' my loan from 76.00 to 59.04 a month. and have sent me a loan agreement for £1000 over 36.00 months plus personal accident cover at 195.00!!! also says at the bottom of '' explantion of compensation Calculator'' total cash to customer - £456.15. If my balance is around 1100 why dont they take the 45.15 off exsisting balance and i will pay the remainder etc. i dont wish to stay with them for another 36 months or take out any new loans etc. want to get out of this asap. Looks like they are just trying to drag this out for as long as possible to get more interest out of me. any advice??

di3004

spursn17 wrote: »

i have recived a letter from Welcome finace in response to sending them my ppi claim. original loan - 1000 over 36 months paying 76.00 a month.taken out in june 08 up to date. think the current balance is like 1100. They have sent a letter saying that they can ''reschedule'' my loan from 76.00 to 59.04 a month. and have sent me a loan agreement for £1000 over 36.00 months plus personal accident cover at 195.00!!! also says at the bottom of '' explantion of compensation Calculator'' total cash to customer - £456.15. If my balance is around 1100 why dont they take the 45.15 off exsisting balance and i will pay the remainder etc. i dont wish to stay with them for another 36 months or take out any new loans etc. want to get out of this asap. Looks like they are just trying to drag this out for as long as possible to get more interest out of me. any advice??

Hi there

I really don't understand why and how they done this really, but maybe you could write to them you don't actually want to take any more credit/loans and if possible take off the amount from the existing balance as you stated, tell them you wish to settle in due course, hopefully sooner rather than later.

Maybe the others on here will have more ideas on this one for you.
Good luck.;)

tufters01

spursn17 wrote: »

i have recived a letter from Welcome finace in response to sending them my ppi claim. original loan - 1000 over 36 months paying 76.00 a month.taken out in june 08 up to date. think the current balance is like 1100. They have sent a letter saying that they can ''reschedule'' my loan from 76.00 to 59.04 a month. and have sent me a loan agreement for £1000 over 36.00 months plus personal accident cover at 195.00!!! also says at the bottom of '' explantion of compensation Calculator'' total cash to customer - £456.15. If my balance is around 1100 why dont they take the 45.15 off exsisting balance and i will pay the remainder etc. i dont wish to stay with them for another 36 months or take out any new loans etc. want to get out of this asap. Looks like they are just trying to drag this out for as long as possible to get more interest out of me. any advice??

Can I ask how long welcome took to process your complaint and come back with a decision, as I am still waiting. Good luck x

spursn17

well a couple of weeks to reply and say they couldnt find me details. then around another couple of weeks to send me this offer in which they have given me 14 days to respond. i have attemped to ring there complaints line several times but i am kept on hold.....sending a them another letter today.

micksea173

I have just had a successful claim off Welcome Finance of just over £800. It took me just over a year and a half. It would have been a year, but they cocked it up by sending the cheques to my old address instead of my new one which they had the address of.

Also a word of warning, I ended up with a debt collector chasing me for the full payment of the loan when they changed over the account number. Luckily I had to fight tooth and nail and even went to court as this debt collector didn't believe me. I also kept my statement that I had received from Welcome which proved that the loan was getting paid and the court even phoned Welcome up to find out what the hell was going on.

The court case lasted 5 minutes and was kicked out of court. The debt collection agency got a right bollocking for wasting court's time and also had to pay court costs and paid me some money for wasting my time as well. They weren't to happy about it, but they didn't believe me.

di3004

micksea173 wrote: »

I have just had a successful claim off Welcome Finance of just over £800. It took me just over a year and a half. It would have been a year, but they cocked it up by sending the cheques to my old address instead of my new one which they had the address of.

Also a word of warning, I ended up with a debt collector chasing me for the full payment of the loan when they changed over the account number. Luckily I had to fight tooth and nail and even went to court as this debt collector didn't believe me. I also kept my statement that I had received from Welcome which proved that the loan was getting paid and the court even phoned Welcome up to find out what the hell was going on.

The court case lasted 5 minutes and was kicked out of court. The debt collection agency got a right bollocking for wasting court's time and also had to pay court costs and paid me some money for wasting my time as well. They weren't to happy about it, but they didn't believe me.

Good for you :T and well done!:beer:

Consumerist

spursn17 wrote: »

. . . think the current balance is like 1100. They have sent a letter saying that they can ''reschedule'' my loan from 76.00 to 59.04 a month. and have sent me a loan agreement for £1000 over 36.00 months plus personal accident cover at 195.00!!! . . .

If your original loan was £1,000 and you have been keeping up your payments then I don't see how your current balance can be more than the £1,000 you borrowed.

What is more likely, from the bank's point of view, is the following :-

Total loan cost = 36 x £76.00 = £2,736
Total repayments to date = 21 x £76.00 = £1,596 (this figure estimated)
Total repayments due = 15 x £76.00 = 1,141

This is an unrealistic view of the situation as far as the FOS would be concerned.

If you know the interest rate on the loan, I will try crunching some numbers for you to get to the real situation.

Edit
If the £59.04 is the monthly payment without PPI then your interest rate looks horrendous ! ! ! Like 76% pa ? ? ?
Have I got your numbers right ?

spursn17

well i have sent back the forms to get my ppi back, apprently can take up to 28 days for them to refund me. also checked my loan rate and its around 45% apr from what i can see.

Consumerist

spursn17 wrote: »

. . . also checked my loan rate and its around 45% apr from what i can see.

I can only repeat that if a £1,000 loan (without any insurance, e.g. PPI) is repayable over 36 months at £59.04 per month then the APR on the loan is about 76% pa. Have you got, or can you get, a copy of the agreement?