Welcome Loan *HELP*

ananewman_2

Consumerist wrote: »

If you have already sent a formal complaint letter then you can now refer the matter to the FOS. If you have not yet formally complained (in writing) then do so now including that you dispute the arrears and that you want statements to justify their position..

Welcome are now telling me that they transferred payments from my car loan to my interest free loan without my permission. I have complained to them about this part today but wanted to know if they are allowed to do this?

I did not authorise this or ever give my permission to do this. Yet they state I did, I have every copy of my agreement and letters. I know I would not ever have authorised anything like this.

Apples2

What do you mean Interest Free Loan from Welcome??

Do you mean it is Interest Free because you have had the interest frozen by entering into a DMP?

ananewman_2

Apples2 wrote: »

What do you mean Interest Free Loan from Welcome??

Do you mean it is Interest Free because you have had the interest frozen by entering into a DMP?

No you don't understand, that's what the guy called the loan. The interest is NOT frozen. My question is is it legal for them to transfer money paid SPECIFICALLY for my car loan to my loan which is a entirely SEPARATE agreement WITHOUT my permission? Is this financially legal even though I was NEVER made aware of this and NEVER signed an agreement stating this?

Consumerist

Just for clarification, why did Welcome give you an interest-free loan?

Apples2

Deleted_User wrote: »

No you don't understand, that's what the guy called the loan. The interest is NOT frozen.

So are you paying interest on it or not? I'm simply baffled how anyone has a loan from Welcome but not paying interest.

It is common for banks to offset defaulted loans using money from linked accounts.

ananewman_2

Apples2 wrote: »

So are you paying interest on it or not? I'm simply baffled how anyone has a loan from Welcome but not paying interest.

It is common for banks to offset defaulted loans using money from linked accounts.

Nope still paying interest, as I said thats what the guy called it. So is what I asked legal?

Apples2

Don't know... but banks do it all the time and get away with it.

Consumerist

I must admit I am a little confused.

On the one hand, you say that you have never been in arrears but on the other hand you say you have a DMP.

DMPs are designed to pay your creditors when you have got into financial difficulties and can't meet all your debt commitments.

Could you clarify the situation?

Tubbss

Hi,

Welcome often transferred payments from one account to another belonging to the same customer to prevent the arrears account (in this case the one on the DMP) reaching the stage of arrears where it would be transferred from the branch to a collections department.
Had the loan been sent to collections, then ALL the customers accounts would have been sent to collections. These transferred served 2 purposes - firstly, it allowed both accounts to remain in branch, and secondly the branches were targetted on transfers to collections - the lower the figure, the better for the branch.

With regards to interest free loan.... not a chance...... never ever happened with Welcome. The DMP may have requested that interest be frozen when they took control of the account, but prior to this the interest would have been anything from 2.5% - 5% PER MONTH

ananewman_2

Consumerist wrote: »

I must admit I am a little confused.

On the one hand, you say that you have never been in arrears but on the other hand you say you have a DMP.

DMPs are designed to pay your creditors when you have got into financial difficulties and can't meet all your debt commitments.

Could you clarify the situation?

The DMP is for my loan and some other debts i incurred when I paid for my mothers funeral. This was taken out in 2008.

The payments that Welcome have transferred from my car loan to my loan were made in 2007 when I paid my loan on time. I took out the DMP in August 2008 and the loan whilst i was paying on time was added to this as I started struggling to meet other commitments. I had to care for my elderly father and pay his bills too so this DMP freed the cash so I could help him.

My car loan has NEVER been in arrears at all and has always been paid on time. No arrears whatsoever.

Does that help?

SO is it legal for Welcome to take payments from my car loan to add on to my personal loan in 2007 when I did not authorise it at all?