Welcome Finance settlement - is this normal?

pureamber234

Hi all

My OH took out a stupid Welcome Finance loan a good few years back and we've been trying to pay it off for ages - actually offered them an early settlement figure ages ago but they refused (at this point it had been sold to their sister company, Lewis Group, who apparently don't take offers). A few weeks ago, out of the blue, Welcome Finance got in touch to say that they had taken the loan back over and asked if we would be willing to offer an early settlement figure. We tried all the negotiating tricks in the book to try to pay as little as possible (over the years, OH has already paid back this loan about 2 or 3 times over) but eventually got them down to 50% of the outstanding amount.

We just got the written confirmation of the offer in the post but the letter is pretty weird. They sent along with it a form, saying that OH signing it is a condition of the offer. It's basically an agreement saying that once the account is settled we won't try to claim anything from Welcome Finance in relation to this account. Now in terms of PPI there wasn't any on the contract so we couldn't claim for it, but there were a multitude of ridiculous charges ("admin" fees etc) so I'm assuming it's probably related to something like that?

Now to be honest for the hassle and uncertainty, I don't know if it's worth trying to take them to court for not a lot, when we can just pay this off and get it out of our lives and move on! But I've never heard of anything like this agreement before. Has anyone had anything similar? Can they really do this? Is it legal?

Any help appreciated....

Tixy

I'd guess it relates to admin fees etc as well as PPI. It could be a standard form they use regardless of whether that particular debtor had PPI.

Its not usual but it wouldn't be illegal. When you make a reduced full & final settlement offer both side can add conditions to the offer/acceptance.
If OH is happy with the settlement figure agreed and has read the form before signing (e.g. making sure it only relates to this 1 account) then I don't think I'd be put off.

Apples2

When you say you have received written confirmation of the offer, does it say "In Full and Final Settlement"?
No other terms will do, does it say those words on the letter?

It isn't uncommon for the letters to say something similar and stating they will not pursue you for any more payments only to find a different company (DRA) will start chasing. It must be full and final or else it will likely be considered a partial payment.

pureamber234

Yes it does, don't worry I checked that! Actually going to ask them to add to the letter an extra sentence stating that they will contact the credit reference agencies to update the account as fully settled.

Just want to make sure before we do it all that signing this sheet isn't a bad idea