Attempting to settle with Welcome Finance

Phamous

Good afternoon all,

I would really appreciate some help and input on this matter.

(Excuse the long post - I am trying to anticipate any questions you may have...)

I took out a loan with Welcome in 2009 for an 84 month term.

I am now in a position to settle with them. So I called them and asked for a settlement figure but they had just (literally days before) sold the loan on to Aktiv Kapital (the accounting company who can't spell...!)

The amount quoted to settle was around £2700. I have asked for a settlement figure before now and it was much, much lower. I think when you ask to settle a loan with Welcome, they take off the future interest. I think the amount quoted by Aktiv to settle the loan includes all of the future interest.

So, guided by another post on this forum, I asked them (Aktiv) for all of the documentation held by them on this loan, which they have sent.

So firstly - the small print on the loan terms and conditions is literally that... small print! I can just about make out some of it but not all of it as it's the tiniest typeface. So I asked them to send it again and they emailed a PDF saying I could 'zoom in' on it. Well, zooming in doesn't help, it just gives me blurred pixels!

So how can I figure out the terms if I can't read it?

Secondly - in the documentation, there is a statement which says I have the right to cancel the loan agreement under the consumer credit act and if I choose to settle early, I can pay the amount of £1432 if three quarters of the term has elapsed (which it has).

I would be happy to post any documentation which I have as image files.

Any help or advice out there please?

MadProf

From your other post regarding this you defaulted on this loan and it was sold onto the DCA in July - not "literally days before". Care to explain?

1) Do you not have the original loan agreement that was sent to you when you entered into this agreement with WF? That should be legible.

2) By defaulting you are the one who has breached the original agreement and therefor would be hard pressed to ask the lender (or rather, now the DCA) to make good on the settlement terms stipulated in the original loan.

Phamous

I'll explain, certainly.

I went into a DMP and paid back a small sum each month until I was in a position to pay off my debts, which I now am. Technically I suppose this is a default.

It was sold in July and I called them in July. It's taken this long for them to get me the paperwork and for me to post again.

We have moved house and I cannot lay my hands on the original paperwork at the moment.

So I'm stuck with paying off the future interest then? Seems a shame when Welcome themselves have always, in the past, given good setllement terms which Aktiv are not prepared to do.

TBeckett100

If you have been underpaying the loan under a DMP, chances are the interest and fees haven't been covered by your payments. Had you stuck to the original terms it would have and then your settlement figure quoted at outset would have been better

If your credit is shot to bits and you are making reduced payments, it may be worthwhile offering 50% as a settlement figure. They probably bought the debt for much lower

jellie

Phamous wrote: »

Aktiv Kapital (the accounting company who can't spell...!)

I believe they're Scandinavian, which could explain the non-English spelling.

Phamous wrote: »

Secondly - in the documentation, there is a statement which says I have the right to cancel the loan agreement under the consumer credit act and if I choose to settle early, I can pay the amount of £1432 if three quarters of the term has elapsed (which it has).

This figure will only apply if you've made each of your payments in full and on time, which it doesn't sound as though you have. You've nothing to lose by offering them a lump sum to settle.

James_B.

Phamous wrote: »

Technically I suppose this is a default.

Technically, literally, and in reality, yes, it is definitely a default.

From that very moment, you have breached the contract, and that changes how the deal works subsequently. If one party breaches an agreement, it does not free the other party from all responsibility, but it does mean that you can't just insist that they "keep to their side". You lost that right when you went back on your word, even if you feel that it was not your fault.

Phamous

Thanks everyone, much appreciated.

The only reason I'm querying it, is that I asked for a settlement figure from Welcome ages ago, while I was still in default, and it was still much lower.

Aktiv are refusing to negotiate.

James_B.

You can ask, they can say no, and if it's truly a stale-mate, then you are stuck (possibly with rising costs) until a court decides.

They can't force anything without a court agreeing, but it's probably in your best interest to keep trying to sort it out.

Thrugelmir

Phamous wrote: »

Aktiv are refusing to negotiate.

That's their right.

jellie

Did you take out a PPI policy with your loan? A refund of that'll reduce your balance.

Phamous

jellie wrote: »

Did you take out a PPI policy with your loan? A refund of that'll reduce your balance.

No, I didn't...

Never mind, thanks everyone. I was hoping to settle this at a reduced rate as I only have a small amount of cash available and I know from experience that Welcome do knock off the future interest and will settle at a reasonable rate. I feel like I've been paying this loan off for years and barely made a dent in it.

Thanks everyone for your advice.