Welcome Loan *HELP*

ananewman_2

Tubbss wrote: »

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

But at the time they state it happened I did not have a DMP and payments were made on time. Is this legal? I never agreed to it. I never signed a new agreement and no where in my loan or car loan paperwork does it state they can do this in fact it states that if any part of my agreement changes I would have to sign a new one.

Tubbss

The systems that Welcome had would allow any historical payment to be transferred between accounts.
This "off-setting" is done by banks all the time and is perfectly legal. With regards to your Welcome accounts financially, you are no worse off, as you are still in debt to the same amount, except more in debt on one, less in debt on the other.

ananewman_2

Tubbss wrote: »

The systems that Welcome had would allow any historical payment to be transferred between accounts.
This "off-setting" is done by banks all the time and is perfectly legal. With regards to your Welcome accounts financially, you are no worse off, as you are still in debt to the same amount, except more in debt on one, less in debt on the other.

Surely they cannot do this without my permission and I checked my loan statement the £337 does not show anywhere on there and I was not in arrears at the time. Surely they must have my permission before doing this??

antrobus

Tubbss wrote: »

The systems that Welcome had would allow any historical payment to be transferred between accounts.

I imagine that they would. I imagine that their system permits them to do all sort of things to their clients accounts. The question is whether the law permits them to do so.

Tubbss wrote: »

This "off-setting" is done by banks all the time and is perfectly legal. With regards to your Welcome accounts financially, you are no worse off, as you are still in debt to the same amount, except more in debt on one, less in debt on the other.

There is no offsetting involved here, and what banks may or may not do is not relevant, as Welcome Finance is not a bank as far as I'm aware.

Consumerist

antrobus wrote: »

There is no offsetting involved here, and what banks may or may not do is not relevant, as Welcome Finance is not a bank as far as I'm aware.

It seems to me that Welcome may have consolidated the debts the OP has with them into a single debt. This may have been agreed by the debt management company on the OP's behalf when setting up the DMP. Welcome may, for example, have agreed to stop charging interest on one or both of the loans (referred to as "interest free" in conversation) and this may have been only for a period (e.g. subject to periodic review) or indefinitely.

I think the OP should contact the debt management company to establish what exactly has been agreed by the creditors when setting up the DMP.

ananewman_2

Consumerist wrote: »

It seems to me that Welcome may have consolidated the debts the OP has with them into a single debt. This may have been agreed by the debt management company on the OP's behalf when setting up the DMP. Welcome may, for example, have agreed to stop charging interest on one or both of the loans (referred to as "interest free" in conversation) and this may have been only for a period (e.g. subject to periodic review) or indefinitely.

I think the OP should contact the debt management company to establish what exactly has been agreed by the creditors when setting up the DMP.

But I was told that they transferred payments in 2007. I only took out the agreement with CCCS in 2008. I was not in debt at the time so do not understand why this happened. All I want to know, or NEED to know is, as Welcome is NOT a bank is this legal?

ananewman_2

Tubbss wrote: »

The systems that Welcome had would allow any historical payment to be transferred between accounts.
This "off-setting" is done by banks all the time and is perfectly legal. With regards to your Welcome accounts financially, you are no worse off, as you are still in debt to the same amount, except more in debt on one, less in debt on the other.

Welcome is NOT a bank, so is this legal for them to do this? Also both my agreements in 2007 were paid on time, it was only in 2008 when i started a DMP.

ananewman_2

All i want to know is, is it legal for Welcome to transfer payments from my car loan to my personal loan without my permission or authorisation.

My DMP was started in 2008

They transferred the payments in 2007 when both agreements were paid on time monthly.

I have never signed a new agreement to authorise this

None of my paperwork shows these payments being moved. I even have a statement of account which does not show the movement from my car loan at all!!

So can someone tell me is this legal!!

Apples2

Deleted_User wrote: »

I only took out the agreement with CCCS in 2008. I was not in debt at the time so do not understand why this happened.

Do you mean in Arrears instead of in Debt?

Even if you did mean to say Arrears, why did you involve the CCCS in anything unless you were in default and not paying your creditors?

It is clear your question about legality is not going to be answered conclusively, go see a Solicitor or CAB. I feel there is only one answer you are looking for so even if it were answered, that wouldn't be the end of it.

Nobody seems to know if the banks are acting legally when they do it, but they do, often, without recourse.

Consumerist

Deleted_User wrote: »

But I was told that they transferred payments in 2007. I only took out the agreement with CCCS in 2008. I was not in debt at the time so do not understand why this happened.

If payments made on one loan were diverted to pay off another loan without your agreement then you have cause for complaint.

If Welcome does not explain their reason for doing this or if you do not accept their explanation then you should refer the complaint to the FOS, as suggested earlier in the thread. If you have been caused any loss and/or inconvenience (including stress, etc.) as a result, the FOS can award you compensation.