Un-welcome finance and secured loan -help needed.

highjinks_2

Hi everyoneI have a secured debt with Welcome (I know This was from a loan I had previously. Everything had been ok with small loans(unsecured) which I paid back sucessfully. I needed to get a loan and turned to them for obvious reasons at the time. The loan was for 5K and I didnt realise it until later that it was a secured loan. I do have a agreement (thin piece of green paper that you can hardly read and nothing else). The amount now owing is >15K.I havent been paying it as they are 3rd inline and they have just left it/me alone and not bothered me, aprt from ocassionally advising of the amount owing with a statement.My question is that what is the procedure for getting rid of this one? I feel that I was certainly mis-sold this loan. I didnt realise it was a secured loan and also the "cool off period" was non-existent. They have now started contacting me again by phone. Any answers gratefully received.regardsHighjinks

Butlers1982

That sort of loan is regulated by the FSA. Therefore when you were sent the details, you had 2 lots of 8 days cooling off period.

You cannot say you were missold the loan as you have had plenty of time to consider their offer.

thin piece of green paper that you can hardly read and nothing else

Why on earth did you sign an agreement that you could hardly read? Im amazed that anyone would do that.

If you feel they have missold you, the first thing you need to do is contact Welcome Finance first. But the question is what are you wanting the outcome to be?

highjinks_2

Hi Butlers1982thanks for the harsh words. Firstly I dont think that 2 lots of 8 days is correct and how do you know how long cooling off period I actually had? Another thing is the agreement is a carbon copy which is quite faint. Its not as if I signed something that I could read!!! I still maintain that I did not sign up for a secured loan. I certainly thought this type of forum was going to be helpful, and not criticise my first post!

Butlers1982

Im not criticising you im giving you information.

A secured loan under £25,500 is regulated by the CCA

Therefore, they will send you out the information on the first day including a copy of the credit agreement. You then send in your details, ID, Proof of income etc.
Then on 8 days after that they send out a credit agreement for you to sign and send back. Then 8 days after that they can contact you and the loan application goes through the bank(ie Welcome Finance)


If you feel that you didnt have this then you have a case to complain to them, if they dont resolve it then go to the Financial Ombudsmans Service for them to deal with it for you.
You have to give them atleast 8 weeks to respond to the complaint and if they dont do to your needs then go to the FOS

Another thing is the agreement is a carbon copy which is quite

But the orginal wouldnt have been a carbon copy, the one you signed.

I still maintain that I did not sign up for a secured loan.

If thats the case you need to ring them up and complain that you didnt sign up for that- and they will send you a copy of the credit agreement to show what you signed up for and agreed to.

Welcome Finance are notorious for charged extreamly high APR and having high exit fees. They are a lender of the last resort and the rate they charge reflect this- they deal with client that have very bad credit.

Also if you dont pay a loan thats unsecured then they can apply to have it Secured against the property.

highjinks_2

Thanks for info. The loan was nowhere near that amount and I went to their office filled in a couple of bits of paper, went back a few days later received chq. I will contact and present them with a CCA and a SAR request and get all relevant details then issue a complaint.thanksHJ

Butlers1982

No worries I appologise if you thought i was criticising.

You are right though Welcome Finance are known to me as UNwelcome Finance.

Because they are lenders of the last resort they are quite open about the high rates they charge

petermb_2

lets get the record straight.
if you have a loan for £5000 secured on your property it is a regulated consumer credit agreement. At this point in time these loans are NOT regulated by the FSA.
As it is a regulated agreement (under £25,001) there are a number of rules and regulations the lender has to abide by. There are a host of things the lender can get wrong and oftern do leaving scope for action against them. I have no doubt that your particular loan is no exception, depending on when you took it out. pm so that I can clarify.

regards

Peter

kurjam

you had a loan for 5k and paid back 15k what was the interest rate on the loan ??

Butlers1982

Welcome finance rates are very very high and they dont try to hide it, have a look at their website and check typical rates right at the bottom!

kurjam

have they added more interest to the loan for not paying it ??
as if you borrow £5 and then pay back £15k thats a very large apr