Welcome Finance Liquidation / Old loan secured on home

jm2k

Ive just received letters from Welcome Finance, stating they are entering liquidation on 16 Dec 2019.
Amongst all the paperwork is "Inviting me to attend a physical meeting of creditors on 16 Dec 2019 to propose liquidators or nominate alternative creditors".

About 12 years ago I took out a loan from Welcome to buy a car. After becoming ill and no longer able to work, the loan eventually ended up becoming secured on my home.
I have not made any payments at all for at least 8 years.
They are aware of my ill health and very low income and never chase the debt, just send me annual statements.

So, a couple of questions:
1. When they go into liquidation - how safe is my home?
Can they force the sale of the house to recoup the costs which they have never attempted to do in all these years or could the debt potentially be written off?

2. What, if anything, should I reply to this letter?

Ben8282

Sorry that you didn't like my reply and that I wasn't sufficiently sympathetic and you found it necessary to report my post and have it deleted by the MSN team.
Perhaps some others will be along who will tell you want you want to hear, which is presumably that your home will not be repossessed and the debt can be written off, and be sufficiently nice to you.
But perhaps I could be permitted to point out that according to your posting history you were driving a car in 2014/2015 (4/5 years ago) when you had the no-fault accident and when you went horse riding and left your car in a field, and had business bank accounts in 2012 (7 years ago).
May I also respectfully point out that you are NOT a creditor of Welcome Finance so I really don't understand why you received a letter intended for creditors.

AMBERSHADOW

Good Morning.


My hubby also received a letter stating the exact thing which he didn't reply or attend..


We today have had another letter stating not to pay and they wont be seeking or pusing any of the debt.
I am very confused really

Caz3121

KPMG page re Welcome Finance and FAQs
https://www.insolvency-kpmg.co.uk/case+KPMG+WJA2155110.html

AMBERSHADOW

Caz3121 wrote: »

KPMG page re Welcome Finance and FAQs
https://www.insolvency-kpmg.co.uk/case+KPMG+WJA2155110.html

Thank you we are still no nearer to understanding

There is no answer as to when this will need to be paid..

They say no -one will be pursued ???

Jonathan_Kelvin

I can’t quite understand the timeline here, you opened a business account after you say you were unable to work, could you clarify what happened when?

It’s not likely that you will use your home, but it’s not impossible. More likely is that the debt will have to be repaid if you ever sell, or taken from your estate if you keep the house for the rest of your life.

molerat

Caz3121 wrote: »

KPMG page re Welcome Finance and FAQs
https://www.insolvency-kpmg.co.uk/case+KPMG+WJA2155110.html

How is that stance acting in the best interests of the creditors ? Unless of course they have managed to find enough assets elsewhere to settle.

SnowTiger

Welcome Finance seems to have been limping along in administration for nearly ten years.

http://www.wfs.co.uk/:

Ed Boyle and Ben Leith of KPMG LLP and Sarah Rayment of BDO LLP were appointed as Joint Liquidators of Welcome Finance - in Liquidation - on 16 December 2019.

For more information and frequently asked questions, please refer to www.kpmg.co.uk/wfsl

www.kpmg.co.uk/wfsl:

Prior to the Joint Liquidators' appointment, outstanding loan balances due to Welcome Finance were frozen with effect from 31 October 2019 and no further interest and charges will accrue.

We will not be collecting (or taking steps to pursue) any outstanding loan balances due to Welcome Finance as at the date of liquidation (16 December 2019) and no payments should be made against loan balances.

The Joint Liquidators are in the process of contacting customers identified as having a potential redress claim against Welcome Finance, providing further information to these customers on how to submit a claim in the liquidation.

Customers who have already made a redress claim against Welcome Finance are also being contacted as part of this process.

22. Why was my Welcome Finance account sold?

As part of the wind down of Welcome Finance, periodically certain loan balances were sold to other finance companies prior to the Liquidation. Welcome Finance was allowed to sell loan balances under the terms and conditions of Welcome Finance’s loan agreement with customers. The new finance company is bound to continue to manage your account in full accordance with your original terms and conditions. You should have received a letter from both Welcome Finance and the new finance company advising of this change and you should contact the new finance company to discuss your account further.

Looks like Welcome Finance had a lot of claims against it, mainly for PPI misselling.

It appears 'good' debts were sold off to third parties some time ago.

The FAQ suggests punters whose loan is still with Welcome Finance have, or should have, made a claim against them.

My guess is that no one wants the 'bad' debts or their value will be wiped out by claims against Welcome Finance.