Welcome Loan *HELP*

LovelyLeeds

Consumerist wrote: »

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.

I think that's the best advice yet. Clearly no one can answer the 'is it legal question', unless they're a qualified specialist lawyer in this field. Read your DMP contract/t&cs - if that doesn't clarify anything - it's a solicitor that will advise the legality.

Consumerist

Apples2 wrote: »

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

Banks' Terms & Conditions include a term which allows them to offset debts against any credit you have in another account with that bank, if you default. Offsetting is, currently, legal.

Diverting payments intended for one account to a different account, however, is another thing. I'm not sure about strict legality but if such a practice caused you any loss then I would say the bank would be open to an action for damages.

Edit
The FOS, however, will save you squillions in legal fees.

ananewman_2

Apples2 wrote: »

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.

I involved the CCCS after my mum died so I could pay for her funeral and help care for my dad. None of my agreements were in arrears I just needed help to gain extra money to help my elderly dad.

ananewman_2

Consumerist wrote: »

Banks' Terms & Conditions include a term which allows them to offset debts against any credit you have in another account with that bank, if you default. Offsetting is, currently, legal.

Diverting payments intended for one account to a different account, however, is another thing. I'm not sure about strict legality but if such a practice caused you any loss then I would say the bank would be open to an action for damages.

Edit
The FOS, however, will save you squillions in legal fees.

Thank you, you have been really helpful and not judging me. I will take up your advice once I hear back from Welcome. This has really upset me and they have not once told me about this until recently. It has been very upsetting.

ananewman_2

LovelyLeeds wrote: »

I think that's the best advice yet. Clearly no one can answer the 'is it legal question', unless they're a qualified specialist lawyer in this field. Read your DMP contract/t&cs - if that doesn't clarify anything - it's a solicitor that will advise the legality.

Thank you for not judging me.

ananewman_2

My complaint to Welcome was upheld, they admitted liability and are going to remove the arrears. They also advised that the loan was finished last month and they owe me money. YAY. Some good news at last :j

Devils-Advocate_3

Deleted_User wrote: »

My complaint to Welcome was upheld, they admitted liability and are going to remove the arrears. They also advised that the loan was finished last month and they owe me money. YAY. Some good news at last :j

Congratulations! I'm really pleased for you x Now move on and enjoy your life!

LovelyLeeds

Deleted_User wrote: »

My complaint to Welcome was upheld, they admitted liability and are going to remove the arrears. They also advised that the loan was finished last month and they owe me money. YAY. Some good news at last :j

Great news, well done on a fantastic result.

Consumerist

Deleted_User wrote: »

My complaint to Welcome was upheld, they admitted liability and are going to remove the arrears. They also advised that the loan was finished last month and they owe me money. YAY. Some good news at last :j

Don't you just love these MSE forums when you're in a bind and don't know where to turn. Best thing since sliced bread, if you ask me. Well done for sticking at it.