Is Welcome Finance going bust?

nomoneytoday

withabix wrote: »

We can all wish though, scumbags that they are...it might come true! :rolleyes:

Personal loans: Typical 69.4% APR Variable, Secured loans: Typical 26.0% APR Variable, Car loans: Typical 19.9% APR

...on a base rate of 1.5%!!!

Then borrow elsewhere !!

withabix

nomoneytoday wrote: »

Then borrow elsewhere !!

Too right!!!

My point is they SHOULD be out of business, to benefit borrowers.

~Brock~

withabix wrote: »

Too right!!!

My point is they SHOULD be out of business, to benefit borrowers.

Not sure how borrowers would be benefitted in that scenario because they wouldn't have anywhere else to go except for the REALLY dodgy backstreet lenders. This type of borrower is also usually not in a position to go through with the initial period of saving required by a credit union.

I'm not connected with Welcome but, as I've posted elsewhere on this forum, with 850,000 customers and bearing in mind they type of business they write, it is hardly surprising that they attract their share of criticism - escpecially from those who cannot seem to grasp the concept of rate for risk. Bear in mind that happy customers tend note to post on sites such as this.

Motor car credit have probably got their own axe to grind with Welcome because they would have had their lending facilities withdrawn from them last year when they pulled out of the car finance market, which no doubt affected their own business.

petermb_2

I think you are correct Brock. There is a definite need for lenders like Welcome, without doubt. The real issue is that companies like Welcome take advantage of borrowers and are more prone to disregards regulations and laws.

In the end that will be bad for the lenders themselves as they are leaving themselves wide open for agreements to be challenged.

In the end the lenders is this market will have to see that they would have been better off doing the job correctly in the first place.

milliemonster

Aren't Welcome Finance though the biggest arm of Cattels that went into administration earlier this week?

~Brock~

milliemonster wrote: »

Aren't Welcome Finance though the biggest arm of Cattels that went into administration earlier this week?

No they didn't. They are dealing with a funding issue caused by the lack of inter bank lending and the delay in the granting of a banking license. Neither of these issues were forseeable 18 months ago.

In the short term they are having to cut back on their lending activities and make cost savings - hence the redundancies. Whilst this is extremely sad for those involved, it is intended to ensure that the business survives these unprecedented times.

Regarding your comments petermb - yes I am sure that there should/could be improvements in their service, although I remain convinced that much of the flak they get is as a direct result of the type of business they write - i.e. to customers who don't pay correctly almost as a matter of course and then complain when the business takes action to recover what is owed.

petermb_2

I really do not think it is as simple as that. I keep saying this and will continue to. If ther lenders get their house in order and become aware of the law and enshrine it their businesses there will be no claims and no complaints and they will have the right to utilise the law to enforce their agreements.

However, while they continue to run rough shod over the borrowers and seek to make as much as they can from selling overpriced , useles products such as single premium ppi to bump up the coffers they will always come undone, especially when they flount the law while doing so.

partyisover

Could be the whisper of goverment caps on interest rates charged lets hope,

Also Feel this 6 year credit file is tooooo long, you only get a criminal record for 5 years for gods sake,,,,,,,,,,,,, anyone for a petition:T

dippynina

Applied for a Welcome loan beginning of December, we have adverse credit and they were only company that could help. We filled in relevant paperwork, signed credit agreement, everything was in order, but had to call them every few days to get an update as the final stages ie - receiving cheque was taking ages. This was over the Christmas period ( we were previously assured we would have cheque in time for Christmas) Every time we called they said they had a back log of loans to process, but not too worry as it would be sorted out by New Year. I had called them on several occasions and got the same story up-to Monday. I called again today and was advised that they were not processing anymore loans and everyone in their office had been made redundant. I was devastated, we were really relying on this. They must have known the situation weeks ago, and if we had been informed we could have gone elsewhere.

I wondered if anyone has been in the same situation with Welcome, or in fact received their loan?

Today I have tried other loan companies to no avail, and was passed to a Debt Management advisor, who said he would sort out three of our creditors , but we would need to give them £250 per month, although it would save as £300 per month.
Is this a good idea?

We are also 2 months behind in a car loan, and are considering selling the car. We are aware if it is returned to the finance company and sold we may still have a deficit to pay, which isn't ideal - Can we sell it ourselves?

itsnever2lateisit?

dippynina wrote: »

Applied for a Welcome loan beginning of December, we have adverse credit and they were only company that could help. We filled in relevant paperwork, signed credit agreement, everything was in order, but had to call them every few days to get an update as the final stages ie - receiving cheque was taking ages. This was over the Christmas period ( we were previously assured we would have cheque in time for Christmas) Every time we called they said they had a back log of loans to process, but not too worry as it would be sorted out by New Year. I had called them on several occasions and got the same story up-to Monday. I called again today and was advised that they were not processing anymore loans and everyone in their office had been made redundant. I was devastated, we were really relying on this. They must have known the situation weeks ago, and if we had been informed we could have gone elsewhere.

I wondered if anyone has been in the same situation with Welcome, or in fact received their loan?

Today I have tried other loan companies to no avail, and was passed to a Debt Management advisor, who said he would sort out three of our creditors , but we would need to give them £250 per month, although it would save as £300 per month.
Is this a good idea?

We are also 2 months behind in a car loan, and are considering selling the car. We are aware if it is returned to the finance company and sold we may still have a deficit to pay, which isn't ideal - Can we sell it ourselves?

Reading between the lines I take it you are trying to consolidate your debts, and if you cant may have difficulties in meeing existing repayments.

If that is the case, then please do not pay anyone to reschedule your debts. There are organisations that do this for FREE, such as CCCS, please, please, please use one of them, as all your money will go towards paying your creditors, rather than making someone else rich. Take a look at the Debt Free Wannabe board for some great help and advise. I did and it is those folk there that have helped me to pay off my debts .