Welcome Finance have changed the amount borrowed!

Kazipoo

I'm after a bit of advice if possible. In May 2008 the hubby took out an agreement for a car (for me), did all the necessary paperwork, got a really good rate and since have been paying the payments, without fail on a weekly basis. The loan was preloaded and we set up a weekly rather than monthly direct debit, although the first payment was a monthly one, meaning we are paying more than the required payment (the monthly divided by 4), so we are ahead :j

Last year, I had a look at our credit files, and saved all of the information, knowing that the car loan was preloaded, I knew that the amount outstanding would be fairly spot on (give or take a week or two). I have recently received a statement from them and it claims we owe more than I would expect, taking into consideration the amount we had outstanding at this time last year.

When I dug out the original contract, the total amount on there differs to the total amount on the yearly statement by over £200, however, when looking back over the years payments, the amount on the statement for the same date as the credit file check, was different in their favour by about £800!! I have now worked it out recently and involved the FOS because I believe Welcome may be trying to take additional money from us.

According to my figures, we should pay the loan off approximately 5 to 6 months early at the end of October/beginning November 2011, however, according to the current balance I have just been given, that would add a further 6 to 7 weeks onto the agreement, meaning an overpayment of around £500.

So far I have 4 differing figures as to how much the original agreement was. The first being on the original contract, the second being on the yearly statement, which is more, the third being on the hubby's credit file and the fourth....

Last year we considered VTing the car, what with the downturn etc we were finding it difficult. Ultimately, we decided to keep it, because we have taken good care of the car, I love it, and because we were coming to the end of a loan agreement this year, giving us some much needed breathing space. At this point they sent us a termination agreement notice, it stated half the total amount of the agreement plus insurances, this again differs to the original agreement.

I have complained and so far they have rejected the complaint, claiming it is unjustified, however, as the FOS complained on our behalf, not all of the details were handed across. I have now sent them a letter stating all of the differences, but after having spoken to the FOS again yesterday, because they have rejected my complaint, they are not obliged to follow up on the letter, at which point obviously the FOS will take over.

So my rather long winded question is, has anyone ever been in a similar situation or would anyone know of the possible outcomes of our complaint?

Thanks x

ILW

Are you saying that the amount on your agreement is different to the amount you actually received?

Kazipoo

The figures are as follows:

Original signed agreement: total amount of credit (including insurances and interest) £16017.36 payable by 48 x £332.11, deposit of £75 and £1 acceptance fee (as shown on the original signed agreement).

Yearly statement: total amount of credit provided £16240.36 - duration 48 months - payments shown weekly @ £83.03

VT agreement: half total amount of credit provided for goods £7387.58 balance payable for insurances £1237.55 which makes £16012.71

Credit file showed £9225 outstanding in September last year, however their statement shows a balance of £10098.30 at the very same time, making a huge difference in the balance in their favour.

I also noticed on the yearly statement there is four transactions called Principal Credit Adj for differing amounts of £31.20, £195, £100 and £16. Although they are all dated 08 May 2008, they appear at different times throughout the year, I have presumed that these are the initial payments we made before the account went weekly?

As you can see, I am confused about how much we are being asked to pay back, but whatever, it certainly seems to be more than we agreed to pay back.

mrcow

Those "insurances" - is that loan insurance? Did you want it? Or were you forced to take it as a condition of the loan?

Kazipoo

It was gap and mechanical, although I am fairly confident that we didn't agree to the mechanical one, and once I noticed it on the contract, phoned to have it removed immediately, although this was done by phonecall to their showroom, which is no longer there, so there is probably no record of it! The only one we generally do take is gap, for peace of mind more than anything.

Tubbss

the adjustments will have been £195 refund of insurance and refund of interest the insurance accrued from opening the loan to cancellation (post dated to time of agreemnent opening 05/08. The £100 is likely to be the option to purchase fee that they incorrectly added to the agreement and again recredited + interest back dated to 05/08.

Kazipoo

Sorry to be a little blonde, but could you explain this further? The amount for the Mechanical Breakdown Insurance was £650 and they were informed of our cancellation within two weeks of getting the car, is this the insurance you are refering to?

Tubbss

sorry, Welcome incorrectly charged lots of people for a paintwork protection insurance (forget the name of it). This cost £195.00 and when the mistake was identified this amount was credited back to the account along with any interest the warranty amount had incurred.

dave2010

I'm in exactly the same boat, got car in summer 2008, total loan, £14681, pay in month in month out, lots of charges that are difficult to understand! a very bad company and regret resorting to them... but me too loved/love the car and look after it, so in a dilemma.

I'm pretty sure i was mis-sold the mechanical breakdown insurance too which came to £725.00 and gap insurance of £420.00, totalling £1145.00 amount of credit for insurances! would like to know how you get with your investigations.

welcome car finance are hard people to deal with as they no longer operate the car division, and getting information out of them is very hard.

thanks dave

ilovebanksMCMLXXXI

If the payments differ from the agreement and Welcome will not help you, you can carry out a Direct Debit Indemnity with your bank