10yr old Welcome Finance secured loan - enforceable?

carrot99

About 10 years ago I got into a right financial mess which resulted in my house being reposessed - at the time I had a mortgage and a secured loan with Welcome Finance.
After the house was reposessed I "presumed" there was enough equity in the property to pay off the debts and didn't hear anything since...
Until a few weeks ago when I got a letter from Robinson Way (debt collectors) demanding £32k!


I've been in touch with the mortgage company and they confirmed the sale of the house only covered the debt owing to them - I don't know what to do?


I had a visit today from an "area manager" from Robinson Way - on instinct I denied all knowledge of the debt and Robinson Way are now getting in touch with Welcome Finance to get more info / proof of the debt...


Can they enforce the collection and if so what do I do / what can they do???


I've checked my credit file and there is no CCJ listed - so either Welcome never got a CCJ or it's dissappeared from my file?

[Deleted User]

If it's secured on the house, yes, it's still enforceable.

Talk to them about a repayment plan.

iolanthe07

AFAIK the 6 year (five in Scotland) statute barred rule does not apply to mortgages and second mortgages. I believe they are not statute barred until 12 years gave passed, so you may need to talk to them and see what they can offer, but take professional advice first.

D_M_E

Zx81 - OP says it was secured on the house, HOWEVER the property got repossessed and all proceeds were used to clear the outstanding mortgage and there was nothing else left to pay anything else.

Presumably the loan would somehow have been removed from the property when it was sold and therefore would have converted to an UNsecured loan at that point?

Don't know if this would apply and don't know the answer to the OP's question but the above might be an avenue worth pursueing, particularly as no acknowledgement or payment has been made for 10+ years?

carrot99

Thanks for taking the time to read and respond - I appreciate it


After initially panicing and stressing I've realised that even IF it's enforceable - they cannot get blood from a stone... I have no idea how much they would "accept" as a payment plan but I'm not going to overstretch myself again for anyone or anything so they will have to take a low monthly amount and hopefully write some of it off (fingers crossed)

G_M

carrot99 wrote: »

Thanks for taking the time to read and respond - I appreciate it


After initially panicing and stressing I've realised that even IF it's enforceable - they cannot get blood from a stone... I have no idea how much they would "accept" as a payment plan but I'm not going to overstretch myself again for anyone or anything so they will have to take a low monthly amount and hopefully write some of it off (fingers crossed)

That's one approach. But do you own another property now? Or a car? TV? Sofa?


Those could (ultimately) be removed, but only if they take legal action which appears not to have happened yet.

D_M_E

Could be worth sending them the statute barred letter and see what they come back with.

Example here https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx

sourcrates

The debt, although no longer secured, is enforceable for a period of 12 years since you last made payment to the debt, or acknowledged it in writing.

Also Welcome have gone bust, so they may not be in a position to provide any proof, which would be good for you.

What are your circumstances, are you a homeowner again, have assets of any kind ?

If you have no significant assets, and no hope of ever repaying it, as its a large sum of money, then Robinson way may take a commercial decision and decide not to pursue the matter.

Or, there are other avenues to explore.

How much was the original loan for, more or less than 25k ?

When was your last payment to the debt ?

carrot99

No I'm not a homeowner anymore and I have no real assets so Robinson Way are going to really struggle to get the money back... If I had it then I would pay it but I don't?


The last payment was in 2008 (10 years ago)



I'll just have to wait and see what they come back with



What are the "other avenues" to explore?

D_M_E

Since Sourcrates - he knows these things better than I do - says it's 12 years for this type of loan and that Welcome have gone bust, try sending the proveit letter instead of or as well as the statute barred letter, available here https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter

Also answer his question about how much the loan was originally for - more or less than £25k?

sourcrates

carrot99 wrote: »

No I'm not a homeowner anymore and I have no real assets so Robinson Way are going to really struggle to get the money back... If I had it then I would pay it but I don't?


The last payment was in 2008 (10 years ago)



I'll just have to wait and see what they come back with



What are the "other avenues" to explore?

If the loan was for less than 25k, it will of been covered by the consumer credit act and you can ask for a copy of your credit agreement, (CCA Request) failure to comply will result in an unenforceable debt.

If over 25k that will not apply.