Welcome Car Finance

shopaholic2639

Hi, Back in 2007 I took out a loan with Welcome Finance to buy a car, this was for originally £3,500. About a year later my marriage split up and I was left with a mountain of debt. I fell behind with my loan for a while until finally, once I got my head out of the sand, I agreed with them that for 6 months I would pay a small affordable amount a month to them.
Since June of 2010 I have been paying the full original agreement amount again, however, I now still owe over £4,500!!! The car isnt worth the money to be honest, but I have no choice, I need my car to get me to work.
I have just taken a call from my contact at Welcome, he has been pestering me to clear the arrears, but I simply do not have that kind of money & my finances are no different to what they have been.
He then suggested for me to take my car to a garage to trade in, pay Welcome back the money & get a new car on a new HP. I explained..
1. I am on a DMP (which he knew), so I am not allowed to take any further debts out.
2. I wouldnt do this as I could not possibly afford to repay the new loan as it would be twice as much.
I have now agreed for the next 3 months to pay another £10 on top of the original monthly agreement as its all I can afford. He hopes in three months time I will be better off, not sure what he can see in my future!!!
I cant quite believe he suggested that to be honest!! Who cares about anyones life/circumstance in order for them to get their money seems to be their moto!! I know I owe it but I feel anoyed at all the interest & arrears they have added along the way. Seems very steep to me and I have no way out!
I had to write this on here not only to get it off my chest but to see if anyone has any advice? Ive got to expect calls every 3 months aparently from them to chase for more money. Great!!

KingElvis

Good old Welcome, they are desperate to get some of the money back in they lent out I guess.

Rumours were of them closing or being sold to the vultures.

amersall

Hi there, was this not included in your dmp and did you have ppi on this loan?. If this is not included in your dmp then i would suggest that you do an income and expenditure for welcome and offer them what you can realistically afford, hopefully this will help. You are right about them trying to get more money out of you than you can afford, they dont care what you have not got, they want a share of that!!. At least you are paying them something and have not just stopped paying.

shopaholic2639

I cant add it to my DMP unfortunately, as it is aparently HP not a loan, I was not aware of this when I took it out. I basically had seen a car online and the garage I brought it from sorted the finance out through Welcome, I assumed it was a loan not a HP agreement, I thought that was very different indeed. Was actually thinking about asking for my original agreement to be sent to me as I no longer have a copy. I am actually paying them £163 a month which is more than just something, its a big chunk of my wages. I am hoping that in a court of law (if it ever got to that) that as long as I am paying this to them they cant do anything about it. Even if it takes me another 4 years to clear the debt at least im clearing it eventually. Right?

KingElvis

Trouble is, with HP they just come and snatch the thing back, Welcome have form on this board for snatching peoples bangers back, even if they are worthless.

shopaholic2639

Yes they have threatened this, however, I have paid enough towards the car for them to not just be able to take it. I think they would need to get a court order etc & I dont know if I am right in thinking this but I believe the court would see my situation, i.e I need a car or would loose my job, I cant afford to pay arrears in one go but have been paying alot a month to them. Surely they would side with me would they not? Or would they just issue the order without my information? To be honest the car cost me £600 in 2010 for MOT etc so its hardly worth a penny as is. If I had another choice id let them have my car & be the end of it!

amersall

shopaholic2639 wrote: »

I cant add it to my DMP unfortunately, as it is aparently HP not a loan, I was not aware of this when I took it out. I basically had seen a car online and the garage I brought it from sorted the finance out through Welcome, I assumed it was a loan not a HP agreement, I thought that was very different indeed. Was actually thinking about asking for my original agreement to be sent to me as I no longer have a copy. I am actually paying them £163 a month which is more than just something, its a big chunk of my wages. I am hoping that in a court of law (if it ever got to that) that as long as I am paying this to them they cant do anything about it. Even if it takes me another 4 years to clear the debt at least im clearing it eventually. Right?

It would be a good idea to get a copy of your hp agreement to see if ppi has been put on there. As long as you are paying this, it will come to an end and, in the grand scheme of things 4 years is not such a long time is it?. You never know your circumstances may change and then you will be able to get rid of this sooner.

shopaholic2639

Something in me tells me I did take ppi with it, at the time the job I had Id only been in for a few months, so I may have done it for security. Im not holding my hopes up too much though as im sure they wouldnt lie as Welcome tell me I didnt have ppi. I have now written a letter to ask for my agreement to be sent to me. I thought id write as it makes it more official. I agree with the 4 years not such a long time, its just Welcome pushing me. I have told them that if anything happens & I come into money etc they are top of the list.

Apples2

shopaholic2639 wrote: »

. I am actually paying them £163 a month which is more than just something, its a big chunk of my wages.

Even if it takes me another 4 years to clear the debt at least im clearing it eventually. Right?

Not necessarily.

Do you understand exactly what charges are being applied (what interest and capital you are paying each month, what charges for calls and letters are being applied)?

£163 is a decent chunk so I'm sure your debt is decreasing but many find their repayments aren't covering the interest and charges so their debt is going UP each month.

It would be nice to know exactly how fast you are clearing your debt so you can work out the time remaining (4 years could be optimistic).

PNPSUKNET

shopaholic2639 wrote: »

Yes they have threatened this, however, I have paid enough towards the car for them to not just be able to take it. I think they would need to get a court order etc & I dont know if I am right in thinking this but I believe the court would see my situation, i.e I need a car or would loose my job, I cant afford to pay arrears in one go but have been paying alot a month to them. Surely they would side with me would they not? Or would they just issue the order without my information? To be honest the car cost me £600 in 2010 for MOT etc so its hardly worth a penny as is. If I had another choice id let them have my car & be the end of it!

You would think, but the asset is still theirs, if you have arrears they can formaly default you and demand full ball or car back