We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Welcome Finance & PPI
fullingdale
Posts: 54 Forumite
We have received a letter for an old debt on a loan from Welcome Finance; the basics of the letter are along the lines of they are offering to reduce the debt from £3000 to £700, on the condition that we waive any claims on PPI against them.
The tone of the letter suggests that they are admitting that they would be a claim for PPI to the tune of £2300, so they're doing us a favour by rolling all this into one.
But, always being suspicious of such things, I am mindful that the PPI could be for more than £2300, in which case, it would make more sense to claim the PPI and then repay the debt, leaving some cash in my pocket.
Anyone else had similar experience with this?
I understand that all PPI claims are handled through FSCS and Aviva; is there a way to find out how much PPI is owed (without claiming it)?
Given that the reduction offer is valid for 90 days, we have time to investigate.
The tone of the letter suggests that they are admitting that they would be a claim for PPI to the tune of £2300, so they're doing us a favour by rolling all this into one.
But, always being suspicious of such things, I am mindful that the PPI could be for more than £2300, in which case, it would make more sense to claim the PPI and then repay the debt, leaving some cash in my pocket.
Anyone else had similar experience with this?
I understand that all PPI claims are handled through FSCS and Aviva; is there a way to find out how much PPI is owed (without claiming it)?
Given that the reduction offer is valid for 90 days, we have time to investigate.
We missed out on the reclaim of nearly £5000 bank charges from HSBC, but picked up over £10000 in PPI claims against them instead. I am now debt free and working to help my other half clear hers
0
Comments
-
Do you have any proof you paid more PPI?
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
0 -
One option is to write a without prejudice letter to ask them to clearly explain how they have calculated this offer. And ask them to clearly confirm and demonstrate that in their calculations, they have ensured that this course of action would actually be the best deal for you vs. a claim for PPI. Ask if the deal being made has been calculated and based on a potential re-claim of the PPI you have paid plus interest.
I personally would probably take a dim view of an institution making "binding" offers like this (which effectively seek to remove a customers rights to pursue a complaint that "could" be more lucrative) without being transparent about their calculations.
With that said however, the alternative is that this could be an easy way to resolve the issue with minimal hassle. Does the letter stipulate that the offer in non-negotiable? If not, and it were me, and I were of a mind to accept, I would probably chance a response stating I would be prepared to accept a reduction of my outstanding balance to [for example] £500 and see if they will accept.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards