Welcome Finance Help!

Blaz

Back in summer 2004 i took a loan out for £1500 a few months after that i borrowed a further £1000 with my x girlfriend as a joint loan. We split in 2005 an i was devastated to find that with interest i owed them £6,000+ back! Since then although i paid my half of the debt for a couple of yrs she never paid a penny my credit got destroyed and still is. I never spoke or paid a penny to them for a few yrs now (out of protest that they've always harassed me for the debt an never her). So i havent spoken to or dealt with them since 2009 even then that was a debt collector (lewis i think?)

I want this thing gone, its been a ball and chain for too many years and ive realised im just goin to have to bite the bullit and get rid of it somehow.

I think i maybe too late for a PPI claim now although i know for definite i was sold PPI, why didnt you make a claim sooner you ask? Well in May 2005 they amended my loan and told me they knocked money off the the balance (around £6,000) which took the balance to around £4,900. I assumed they knocked the PPI off but now that i look at my credit score im not so sure as it says my default balance is £4,300. Here is my report taken from Experian below:-

Company name: WELCOME FINANCIAL SERVICES LTD Who's this?
Account type: Loan
Started: 31/05/2005
Default Balance: £4,314
Current Balance: £6,393
Repayment Period: Monthly Payment: £74 over 73 months
Defaulted On: 14/04/2007
File Updated for the Period to: 13/02/2011
Status history:
[] brackets indicate most recent months status [ ] What's this?
Note: A defaulted account is removed from your report after six years whether or not you have paid the debt in full. If you have paid some of the debt off, the balance should show how much you still owe.

I want to know -
Whats the best thing for me to do to get rid of this debt? It says it will be removed from report in 6 yrs after it went into default in 2007 (although I had contact with them in 2009) ... Should i wait? Or if i call up and offer them a settlement fee ??

What is a Default balance?!?!

Also this might be important or not ... They said to me if i didnt take the PPI they wouldnt give me the loan, does this void the credit agreement?

Im really at a loss to get rid of this debt please help!

Thx!

Tixy

Whats the best thing for me to do to get rid of this debt? It says it will be removed from report in 6 yrs after it went into default in 2007 (although I had contact with them in 2009) ... Should i wait? Or if i call up and offer them a settlement fee ??

Whilst it would be removed from your credit file in April 2013 that won't get rid of the debt. If you can afford to I would negotiate a settlement with them. Is any debt collector or welcome chasing you at the moment?

What is a Default balance?!?!
Its usually the balance owing at the date of default.

Also this might be important or not ... They said to me if i didnt take the PPI they wouldnt give me the loan, does this void the credit agreement?
No it doesn't void the credit agreement - but it gives you a good case to say that the PPI was missold and you might well be able to reclaim the PPI that you paid (which would hopefully bring down the balance that was owed).

If you are not currently being chased then I would consider looking into a PPI reclaim - Reclaim PPI & Other Insurance,
AFAIK I don't think you are too late for a reclaim - I beleive if the account has been active in the last 6years you might be able to make a claim (but check out more info on the guides and threads on that section of the forum).

Blaz

No im not being chased, or getting threatening letters or calls. But i just want rid of it now, ive had bad credit for too long because of somethin out of my control. I jus spoke to some sort of solicitor who deals with PPI claims an they said that coz the loan was taken out in 2004 its to late to claim PPI, But ive also read here - http://www.moneybright.co.uk/info/ppi-claims/articles/ppi-claims-time-limit that you can claim after 6 years as long as you have the original papers ... and that the 6 yrs only relates to how long they are required to keep the paperwork. Is this true can someone confirm this? But if they throw away the paperwork doesnt that void the credit agreement meaning they are unable to prove the debt??

If i rang Lewis (the debt collector) or Welcome Finance up and they confirmed that the £4k includes PPI would they have to knock it off? Or is that generally what a PPI claim is, getting money knocked off your balance on a debt?

BigCraigJohn

PPI should be refunded as a seperate payment as its something you should never of paid in the first place. You should get everything paid, any interest charged on it + ask for 8% basic interest on top of that.
Also mke sure you get any default charges refunded.
If you are willing to get your hands dirty it may be worth having a look over on CAG forums, there is a Welcome section. Basically there were a lot of underhanded things going on with the way they sold and processed loans, most of there loans are bad.
Not a clue what the solicitor means. Use the guide on here, no extra fees and you get every penny back.

Blaz

Well i jus spoke to some guy over at Financial Services Compensation Scheme who are dealing with PPI claims on behalf of Welcome Finance, he said although he can see that in 2004 the two loans had PPI on them but the amended loan in 2005 does NOT. Therefore because the 2 other loans in 2004 where before Jan 05 he cant help me and that i have to contact Welcome ... what can i say to them ? If i still have proof about the PPI in 2004 can i do anything about it ? Will they be more likely to settle the debt if i threaten them with PPI action ??

Tixy

If you still have the paperwork you may be able to still reclaim, although the chances are reduced - its all covered on the reclaim PPI section of the forum and if you look at the reclaiming guide http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance at step 1 it starts by looking at the age of the debts and talks you through the steps/process.

Blaz

Here is the proof of the original documents i have,

Okay here is my first agreement from July 2004 borrowed £1500



My 2nd agreement from Nov 2004 where we asked to borrow an extra £1000 on top of the £1500



Then almost a year after our first loan they generously knocked off some money and amended the agreement in May 2005 (note the lack of PPI in this one??)



So looking at these the 1st agreement has around £500 PPI, the 2nd agreement has around £900 PPI but the third agreement doesnt have any, did they deduct the £900 PPI ??
Is it worth me ringing welcome finance and talking to them about the PPI but instead of trying to get money out of them jus offer £500 settlement fee (the PPI they owe me is around the £500 to £1400 mark depending on whether or not that £900 was wiped in the 3rd agreement).

Tixy

You really need to ask on the PPI section of the forum that I linked to above. If you post there then the people who know most about PPI reclaims will see and be able to advise.

Blaz

I have done but i got a better response here ...

jellybean39

Blaz wrote: »

Here is the proof of the original documents i have,

Okay here is my first agreement from July 2004 borrowed £1500



My 2nd agreement from Nov 2004 where we asked to borrow an extra £1000 on top of the £1500



Then almost a year after our first loan they generously knocked off some money and amended the agreement in May 2005 (note the lack of PPI in this one??)



So looking at these the 1st agreement has around £500 PPI, the 2nd agreement has around £900 PPI but the third agreement doesnt have any, did they deduct the £900 PPI ??
Is it worth me ringing welcome finance and talking to them about the PPI but instead of trying to get money out of them jus offer £500 settlement fee (the PPI they owe me is around the £500 to £1400 mark depending on whether or not that £900 was wiped in the 3rd agreement).

omg does that say 57% interest? on the loan
:eek:

jellybean39

Blaz wrote: »

Here is the proof of the original documents i have,

Okay here is my first agreement from July 2004 borrowed £1500



My 2nd agreement from Nov 2004 where we asked to borrow an extra £1000 on top of the £1500



Then almost a year after our first loan they generously knocked off some money and amended the agreement in May 2005 (note the lack of PPI in this one??)



So looking at these the 1st agreement has around £500 PPI, the 2nd agreement has around £900 PPI but the third agreement doesnt have any, did they deduct the £900 PPI ??
Is it worth me ringing welcome finance and talking to them about the PPI but instead of trying to get money out of them jus offer £500 settlement fee (the PPI they owe me is around the £500 to £1400 mark depending on whether or not that £900 was wiped in the 3rd agreement).

omg the interest is hurrendous thought i was seeing things 57%:eek: