Welcome Finance in the wrong?

Ambidou

Hi, I have a current loan with Welcome Finance and still owe about £5,000. This morning they rang up and asked me if I could take out another loan with a different company to pay them off. Surely this is illegal? If not then its morally wrong. Or maybe they're just going bust, Any ideas on how to handle the situation?

Cheers!

smithers1981

They cannot force you to take out another loan, just ignore/say no.

gettingthere1975

from what i gather they are not selling loans and are trying to get as much money in as they can, your legal agreement is with them, i see it as they are pressuring you to settle to get more money into their ailing company, you dont have to do this, just say no thank you my repayments are quite comfortable, thanks for asking LOL

KingElvis

Tell them to take a hike...chancers.

Apples2

Ambidou wrote: »

This morning they rang up and asked me if I could take out another loan with a different company to pay them off. Surely this is illegal? If not then its morally wrong.

Why would it be illegal or even morally wrong?

Their Interest rates were always shocking so it is entirely feasible someone else is offering a better rate on lending so it could save you a significant amount of money.

The chances of a Welcome Loan customer being accepted for any other loan though, let alone one with a better APR, is another topic but the concept is a good one.

bargainbetty

It is against FSA guidelines and can be considered harassment if a creditor pressurises a debtor into taking on more debt to finance their repayments or settle a debt outright.

Just asking, cheeky but legal. Call them back and say that if they will accept 75% of the outstanding sum in full and final settlement, then you will consider finding a loan elsewhere. Say you're not willing to pay interest twice

If you can find a loan that works out cheaper over your remaining term, is it worth doing to save the money? Got to be worth a punt, surely?

poppasmurf_bewdley

Ambidou wrote: »

Hi, I have a current loan with Welcome Finance and still owe about £5,000. This morning they rang up and asked me if I could take out another loan with a different company to pay them off. Surely this is illegal? If not then its morally wrong. Or maybe they're just going bust, Any ideas on how to handle the situation?

Cheers!

Welcome Finance is insolvent and has been declared in default by the Financial Services Compensation Scheme.

AlexLeigh

If they're offering you a better deal it might be worth looking into it!

Don't pay any up front fees though or pay a higher rate!

pheonixrising21

poppasmurf_bewdley wrote: »

Welcome Finance is insolvent and has been declared in default by the Financial Services Compensation Scheme.

So, out of interest, what happens if a company you have a loan with goes bust? Does the loan get written off/down? Are you forced to repay with immediate effect (i.e. find another loan)? What happens if you can't do that?

poppasmurf_bewdley

pheonixrising21 wrote: »

So, out of interest, what happens if a company you have a loan with goes bust? Does the loan get written off/down? Are you forced to repay with immediate effect (i.e. find another loan)? What happens if you can't do that?

Welcome Finance have stopped giving out loans, and are only trying to get in what money is owed to them, hence why they are trying to persuade the original OP to pay off his loan with a loan from someone else.

Doubtless, any loans not paid back will eventually be sold off to other companies, but anyone not paying them will only trash what is probably already a very poor credit record.