Loan - welcome finance - need advice / guidance

edited 30 November -1 at 1:00AM in Loans
12 replies 1.4K views
willowthewisperwillowthewisper Forumite
11 Posts
edited 30 November -1 at 1:00AM in Loans
This is a long winded query so please stick with me .. I need some advise
My husband took out a loan with welcome finance in 2001 he then took out a top up loan with the same company on 2003 . So loan a was paid off and the balance remaining 'transferred' to loan b. then in 2004 he got into financial difficulty , he called them and asked if he could make a smaller payment they agreed to a figure he was happy with and he started maying payments. Now here comes the long winded part... Over the last 6 months we have finally been able to actually get statements from them as this organisation is 'operational ' anymore we've struggled to actually speak to someone. Through sending a SARS requested we've been able to get all the information on the one current agreement which is for loan c.. Now alarms bells started rinnging when they couldn't or wouldn't send a copy of the loan agreement that he would have had to sign ... After 6months of them fobbing us and me referring this to the financial ombudsman service they have some back and said 'you never signed an agreement, the account was reworked and this was done in your best interest' they've said that this was done as part of a debt management solition. When the reworked the account they closed down loan b and moved the figure owing to loan c , in doing so my husband got a new account /loan number but was never formally sent anything or asked to sign anything, this account loan c had interested added to it!! It looks like they've just opened Notjer account in his name and apportioned a debt to his name without his authority or agreement to do so. But I have several questions if anyone out there can help i would appreciate it.

- if you re work an account for instance if you contact the lender and for instance say I'm having difficulties can I reduce my payments, then the lender surely has to ensure that all account details remain the same ? As for audit and consistency surely you have to have the same account.

- if this was a debt management solution then they can't add interest can they? Cause the first 3 years looks like that's what they have done each month and then it suddenly stops.

- can they really open an new loan account in his name without him signing a credit agreement , this means he hasn't had a cooling off period or even had an notification that that's what they've done ... They stage that they were acting in his best interests

- if there's no signed loan agreement then my husband can not surely be liable for the debt he's made regular repayments but as they have not told him that this is what they did until now 9 years after it happened if we stop making the token payment then they will try an enforce it.

This case is with the FOS but they aren't being very helpful and welcome are dragging their heels I need some guidance on this particular financial activity is it a legal what they have done and b enforceable .... We're thinking of progressing this though the small claims court to recoup the payments he's made since 2004 on loan c that has no signed credit agreement .. Any advise welcome
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Replies

  • jelliejellie Forumite
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    Can't answer your question, but if your case is with FOS, you'll have to wait for them to carry out their review. How are they being unhelpful?

    If you do decide to go to court before FOS have adjudicated, they will not be able to help you.

    You can go to court after FOS, but not the other way round.
  • We have 3 cases in respect of this particular organisation 2 for ppi and one for the loan agreement mis information the case is being managed by an adjudicator ... Not an ombudsman and so although he has been helpful he hasn't been forceful with the organisation in obtain the correct information. He has been able to actually get a final statement from them. They give him the run around and he hasn't been very thorough when reviewing the information that's come through . For instance we asked for loan statements for all 3 loans they have sent 3 x statements for the last loan... They're shocking and they are also very good at twisting things so the adjudicator has gotten confused . We've agreed with him that they have 24 days to reply to my last letter reference the lack of signed agreement and no iva agreement or notification and then it will be passed to an ombudsman. I've found the FOS helpful in making them actually stand up and take notice but they've not been very good so far in actually getting the information out of them that they need to properly adjudicate the case.
  • Apples2 once you have finished your personal attack and cast aspersions which are wholly unfounded maybe you'd like to just jog on... If you have nothing useful add.
  • bigadajbigadaj Forumite
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    Apples2 once you have finished your personal attack and cast aspersions which are wholly unfounded maybe you'd like to just jog on... If you have nothing useful add.

    Apples comments are possibly harsh but not unfair.

    By all means try going through the small claims court but it sounds as though you are just trying to duck out of the debt on any technicality you can find, this is difficult to fo unless you enter a dmp or go through bankruptcy with the associated long term impacts on your life.
  • dealer_winsdealer_wins
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    All this care about what you agreed to and repayments was so needed in 2001 LOL
  • edited 28 September 2013 at 12:33PM
    DCFC79DCFC79 Forumite
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    edited 28 September 2013 at 12:33PM
    This is a long winded query so please stick with me .. I need some advise
    My husband took out a loan with welcome finance in 2001 he then took out a top up loan with the same company on 2003 . So loan a was paid off and the balance remaining 'transferred' to loan b. then in 2004 he got into financial difficulty , he called them and asked if he could make a smaller payment they agreed to a figure he was happy with and he started maying payments. Now here comes the long winded part... Over the last 6 months we have finally been able to actually get statements from them as this organisation is 'operational ' anymore we've struggled to actually speak to someone. Through sending a SARS requested we've been able to get all the information on the one current agreement which is for loan c.. Now alarms bells started rinnging when they couldn't or wouldn't send a copy of the loan agreement that he would have had to sign ... After 6months of them fobbing us and me referring this to the financial ombudsman service they have some back and said 'you never signed an agreement, the account was reworked and this was done in your best interest' they've said that this was done as part of a debt management solition. When the reworked the account they closed down loan b and moved the figure owing to loan c , in doing so my husband got a new account /loan number but was never formally sent anything or asked to sign anything, this account loan c had interested added to it!! It looks like they've just opened Notjer account in his name and apportioned a debt to his name without his authority or agreement to do so. But I have several questions if anyone out there can help i would appreciate it.

    - if you re work an account for instance if you contact the lender and for instance say I'm having difficulties can I reduce my payments, then the lender surely has to ensure that all account details remain the same ? As for audit and consistency surely you have to have the same account.

    - if this was a debt management solution then they can't add interest can they? Cause the first 3 years looks like that's what they have done each month and then it suddenly stops.

    - can they really open an new loan account in his name without him signing a credit agreement , this means he hasn't had a cooling off period or even had an notification that that's what they've done ... They stage that they were acting in his best interests

    - if there's no signed loan agreement then my husband can not surely be liable for the debt he's made regular repayments but as they have not told him that this is what they did until now 9 years after it happened if we stop making the token payment then they will try an enforce it.

    This case is with the FOS but they aren't being very helpful and welcome are dragging their heels I need some guidance on this particular financial activity is it a legal what they have done and b enforceable .... We're thinking of progressing this though the small claims court to recoup the payments he's made since 2004 on loan c that has no signed credit agreement .. Any advise welcome
    We have 3 cases in respect of this particular organisation 2 for ppi and one for the loan agreement mis information the case is being managed by an adjudicator ... Not an ombudsman and so although he has been helpful he hasn't been forceful with the organisation in obtain the correct information. He has been able to actually get a final statement from them. They give him the run around and he hasn't been very thorough when reviewing the information that's come through . For instance we asked for loan statements for all 3 loans they have sent 3 x statements for the last loan... They're shocking and they are also very good at twisting things so the adjudicator has gotten confused . We've agreed with him that they have 24 days to reply to my last letter reference the lack of signed agreement and no iva agreement or notification and then it will be passed to an ombudsman. I've found the FOS helpful in making them actually stand up and take notice but they've not been very good so far in actually getting the information out of them that they need to properly adjudicate the case.
    Apples2 once you have finished your personal attack and cast aspersions which are wholly unfounded maybe you'd like to just jog on... If you have nothing useful add.

    I wish you luck in your quest
  • I totally understand that if there is a debt to pay then he must pay it and he is more than happy to clear but the crux of the matter is ... I'm not actually 100% sure there is a debt to be paid! All their paper work points to this no statements not credit agreement.. The only reason I posted was to see if someone out there new if you had an iva if they can add insurance ... And if they did add insurance and create this new account with out him signing a new agreement is that legal! This company as so shoddy and I wish he hadn't done this this was way before we met and married!
  • Caz3121Caz3121 Forumite
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    I'm not actually 100% sure there is a debt to be paid!
    Has he paid off the total of the first 2 loans plus the interest in total?
  • jelliejellie Forumite
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    I totally understand that if there is a debt to pay then he must pay it and he is more than happy to clear but the crux of the matter is ... I'm not actually 100% sure there is a debt to be paid! All their paper work points to this no statements not credit agreement.. The only reason I posted was to see if someone out there new if you had an iva if they can add insurance ... And if they did add insurance and create this new account with out him signing a new agreement is that legal! This company as so shoddy and I wish he hadn't done this this was way before we met and married!

    So he was in an actual IVA? You didn't mention that in your OP - if that is the case and he has stuck to the terms of his IVA, the debt would be written off when he had paid back the amount agreed on. As that's not the case, I guess his IVA has failed?

    If he wasn't in an IVA, maybe they rewrote the loan to help him - reducing the payments on a loan would have had an adverse affect on his credit record, whereas having a new loan wouldn't (provided he kept up the payments).

    If this was the case, they might not have had him sign a new loan agreement so they could revert to the previous one if he failed to keep up with the lower payments?

    Without all the relevant information, who knows what happened. You're best letting FOS sort it out as they've got both sides of the story and the paperwork in front of them.
  • Thanks jellie it's all so confusing and they will only provide us with certain informational I guess the FOS is the best place for it. Just want to get to the bottom if it pay it off what's left as we don't even know what's left and get rid
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