Welcome Finance Default

Poppops

I have spent years trying to undo many stupid and desperate decisions in the past and can see light at the end of the tunnel.

Despite having these terrible levels of debt in the past I have always managed to pay minimum payments and gradually increase them so when I checked my credit file I was surprised to see three welcome finance loans, all settled but two of which showed defaults.

I have only had one loan and have paid every single payment on time. Not once has a direct debit been refused.

So I rang them up and they got back to me today. They said that there were three loans because they had converted me loan into a new one twice. Once when I reclaimed PPI and then again when they realised they had made a mistake in the PPI calculation. I can remember them telling me I was getting less than they had originally said.

I asked the guy why I would not have known that I now had a different agreement. He said I would and would get back to me.

So he rings again and says there is an agreement for the new loan but it has an example name and address on instead of mine. He also said that the defaults are down to their system and that when they moved me from one loan to another, to adjust for PPI, it took a while for their system to catch up, so both of these accounts were looking for payments which didn't arrive as they were being paid to the new agreement.

He confirmed that I have never missed a payment and then 'promised' me that it makes no difference whatsoever in having these defaults as they wouldn't affect any credit decision so wouldn't help resolve this.

I obviously now need to write to them. Do I just complain or should I send a SAR. The reason I looked is that I recently asked for a settlement figure and when it came through they had added a few hundred in default interest. When I questioned this at the time, they said every settlement includes this om every company and that it just means interest to settlement date. Is this correct?

Many thanks

Tixy

I would send them a formal complaint rather than a SAR at this stage.

Just stating that Mr x confirmed to you on the phone that there were no missed payments or defaults and that you would like written confirmation that they will remove any negative entries from your credit files with the credit reference agencies.

When you say defaults - do you mean that they have a default date listed, or just that they have showed a missed payment or 2 in the payment history/status codes section.

The reason I looked is that I recently asked for a settlement figure and when it came through they had added a few hundred in default interest. When I questioned this at the time, they said every settlement includes this om every company and that it just means interest to settlement date. Is this correct?

When you ask for a settlement figure on a loan it will usually show the outstanding capital balance and then early repayment interest (usually equivalent to 2months interest). This would not usually be titled as default interest.

Poppops

Thanks very much. I am worried about that term, default interest

The original loan has a default on. One of the two they created has three consecutive red flags for payments more than 2 months late