welcome finance help please

mothmanxxx

Hi I am 27 years old and I am looking to secure a mortgage, I got a copy of my credit report recently from experian only to find two big debts outstanding with welcome finance the first one over £3000 and the second one wait for this over £15000!! I have used welcome in the past (young and stupid) and paid these off back in 04 and 05 I then got a car of them the supposed £3000 debt and a loan for £1200 or so I had an accident in the car and wrote it off I contacted welcome who told me i should of had fully comp insurance ( I have recently found out that they should of made sure? anyone help) anyway the car got scraped and I have never heard anything since strange?) I assumed they had sorted it as I had payment protection. the second loan for £1200 also had payment protection insurance I lost my job and called them they told me it would be covered and not to worry I have never heard from them since this was in sept 2006. I am now looking at my report and it says I owe them over £15000 I am scared to contact them in case they make me pay the intrest which is still being added. I spoke to the debt advice line today who told me if they havnt contacted me by sept next year they cant legally enforce the Debt Please help as I dont know what to do.

Thanks

PNPSUKNET

Did you have gap on the car? If not you are liable Im afraid for the shortfall. Who did the insurance company pay out?

Londonboy_3

Did you only have 3rd party insurance on a 15k car?

mothmanxxx

Hi Londonboy, The car was £2300 it was the personnel loan that is now that much having originally been £1200 thats just intrest.

mothmanxxx

Hi PNPSUKNET, Thanks for the reply being young and nieve at the time I am unsure. As for the insurance company welcome told me they were sorting it out with them.

kev.s

Londonboy wrote: »

Did you only have 3rd party insurance on a 15k car?

think it was the interest which took it to 15k not the car purchase price.

not their responsibility for car insurance, it's yours end of. payment protection is for job loss etc.
i can't believe some people are so naive about money! sounds like you are basically hoping no contact is made so you can get off with what you owe. who got the insurance payout? if it was ou then you should have handed it to the finance company, if it was them then have they reduced the balance by that amount? how long have you been avoiding this debt for the interest to get to that degree?

some people must be so grateful that tinned soup comes with cooking instructions!

mothmanxxx

kev.s wrote: »

think it was the interest which took it to 15k not the car purchase price.

not their responsibility for car insurance, it's yours end of. payment protection is for job loss etc.
i can't believe some people are so naive about money! sounds like you are basically hoping no contact is made so you can get off with what you owe. who got the insurance payout? if it was ou then you should have handed it to the finance company, if it was them then have they reduced the balance by that amount? how long have you been avoiding this debt for the interest to get to that degree?

some people must be so grateful that tinned soup comes with cooking instructions!

I assumed everything was taken care of due to me spending and extra fortune for payment protections ect. I HAVE NOT BEEN AVOIDING THIS DEBT AS NO ONE HAS CONTACTED ME I LIVE AT THE SAME ADDRESS AND HAVE USED THIS COMPANY TWICE BEFORE AND PAYED EVERYTHING BACK. It was only recently I obtained a copy of my credit file and realised this was on there!!

Hax

First off, you say you have paid everything back - do you have proof of that? Maybe a letter confirming account closure? Or a letter with a settlement figure? If the answer is no, then you probably haven't paid everything back - hence the entries on your credit record.

Whilst it is true that after six years, the debt becomes statute barred (assuming they haven't managed to get a CCJ against you for the debts) that doesn't stop them from updating your credit record in a negative way. A SB debt doesn't mean that the money is no longer owed.

Are the accounts being reported as being late/in default or satisfactory?

You need to sit down and work out what happened - being "young and stupid" is not an excuse for complete neglect of your finances (and car insurance claim!). As you are about to find out, having an attitude like that can cause you serious problems many years into the future. You may have to wait another seven years (possibly more!) before you can get a mainstream mortgage - depending on how WF decide to report on the accounts.