Could anyone help explain this letter from welcome finance please?

Helen171

Hubby had a loan with them back in 2010 for car purchase, all now done and dusted.
Received a letter Monday saying as they didn't notify him of all the "Notices of Sums in Arrears they would like to compensate him by way of monies to the sum of £315.81 including deduction of tax to Her Majesty's Revenue and Customs??
As the account is now closed they would like him to sign a waiver and give them his bank account details for them to pay him via BACS?

Do I need to be suspicious at all? Never known a company wanting to refund monies unless made to via ombudsman or the like?

Any help would be much appreciated. Thank you.

ReadingTim

I guess some error has been identified (either through their own investigations or as a result of a complaint) and they're refunding all those effected by it - either re-actively because they've been told to, or pro-actively in the hope of mitigating a fine from the regulator.

Suggest he phones them up and asks what the money is in respect of, and how the sum was calculated.

I'd only be suspicious if he's asked to sign anything preventing him from bringing further claims, and the amount can't be clearly explained - it could be they're trying to buy his silence cheaply. However, for £300 on a car loan, I don't think that's the case here.

apjc33

My husband also received a letter like this earlier in the week. The only thing I can see that might be questionable is that he has to sign that he confirms his acceptance 'in full and final settlement'. Not sure if there is scope to contest it and secure additional compensation?

His loan was in 2010 and this was compensation for not receiving correct notices, and the compensation is the value of the interest incurred only - I'm sure there were additional costs added to that bill (as unfortunately it went to debt collection as he hadn't updated his address with them). I can only find info on PPI though when searching so was hoping someone else had some information. I guess something is better than nothing, but like OP I'm a little wary...

DCFC79

apjc33 wrote: »

My husband also received a letter like this earlier in the week. The only thing I can see that might be questionable is that he has to sign that he confirms his acceptance 'in full and final settlement'. Not sure if there is scope to contest it and secure additional compensation?

Not sure about the additional compensation but can ask.
The amount is possibly been set by the FCA.