what happens with loan.

petereverton

Hi, am just wondering whats the procedure a welcome loan takes, when you miss a payment??
Like when you start recieving letters and when they take you to court and whats happens next.
Any help is appreciated.

Crown

Hi, If you miss a payment with Wecome (ie a secured loan) you will most likley receive a letter saying that you are in arrears and please pay up. you will also probally be charged a late fee for this.

If you still dont pay up then they can then take you to court to start repossession proceedings. It is unlikey that they would take an offer of repayment through a DMP as this is the reason they ask you to secure your debts against your home.

If you are in the position I strongly suggest that you contact either the CCCS or one of the other debt charities for advice.

petereverton

thanks, i will take your advice.

It is a unsecured loan, owing about 4500. Does that make any difference to what happens, as I don't have a morgage??

chevalier

Well they will still send letter demanding the payment. If you are having a temporary difficulty meeting a loan repayment (ie wages department messed up), then phone them and explain. If it is an ongoing problem (eg you have lost your job, are on sick pay etc), then write to them enclosing and income and expenditure sheet, and then offer them a reduced payment and enclose this. Send it recorded delivery and see what they say.

However if you do this you will default on the loan, which will show up on your credit score.
regards
chev

Crown

Im sorry I assumed when Welcome were mentioned it would be a secured loan. With unsecured debts they will write to you and if not paid they will default your account. this gives them legal rights to sell your on to a debt collection agent if they wish. Normally you can come to some type of arrangment paying a regulary weekly or monthly amount.

As Chev as already said send your income/expenditure sheet and hopefully they will accept a repayment scheme. Once you do this they will default your account and this will tarnish your credit record for 6 years

petereverton

thanks I will phone them and explain, and send a income/expenditure sheet.
thanks again.