Voluntary Termination with Welcome

purplebert

Hi,

I am going to do a Voluntary termination with my car on HP with Welcome,

My question is do i send the letter to Welcome Head Office or to my local office who i pay my money to?

Thanks in advance!!

petermb_2

Before you do this I would think carefully and also answer some questions.

When did you take out the loan?
was the car purchased from a Welcome forecourt or other?
how much did you borrow?
did you include ppi, gap or breakdown cover?

purplebert

Hi Thanks for the reply,

I took the loan out on 25th Feb 2006, and was purchased from a Welcome Showroom, details of borrowings below

Amount of credit for goods - £6194.00
Amount fo credit for insurances - 2789.08
Total Amount of credit - 8983.08
Total amount payable for goods - 10154.20
Total amount payable for insurances - 4397.76
Total amount payable - 14551.96 (for a car bought for 6194!!)

yes PPI, breakdown and gap were included (didn't realise what i was signing up for as told i needed them!)

On the contract - Termination your rights states that i must have paid 5027.10 to do a VT, i have already paid 25 instalments of £298.37 which totals 7459.25.

What do you suggest as advice is warmly welcomed!!

Thanks

petermb_2

purplebert wrote: »

Hi Thanks for the reply,

I took the loan out on 25th Feb 2006, and was purchased from a Welcome Showroom, details of borrowings below

Amount of credit for goods - £6194.00
Amount fo credit for insurances - 2789.08
Total Amount of credit - 8983.08
Total amount payable for goods - 10154.20
Total amount payable for insurances - 4397.76
Total amount payable - 14551.96 (for a car bought for 6194!!)

yes PPI, breakdown and gap were included (didn't realise what i was signing up for as told i needed them!)

On the contract - Termination your rights states that i must have paid 5027.10 to do a VT, i have already paid 25 instalments of £298.37 which totals 7459.25.

What do you suggest as advice is warmly welcomed!!

Thanks

Firstly, I would consider keeping the car. The fact that ppi and other insurances have been added are in your favour. The way these insurances are added to your loan are in fact contrary to common law.

This means that the loan itself is likely to be deemed voidable. If this is the case then the lender would lose the security of the car anyway. In other words they could not repossess it if they wanted to.

I would suggest that you speak to me and I will give you the text that you need to put in to your letter to Welcome.

purplebert

Thanks for the advice, what is the best way to get in touch to get more advice/wording etc? it makes total sense what you are saying! I just want to get as far away from Welcome as i can as i have now seen the light!!

homer_j_3

I am guessing this will be something along the lines of putting the loan into dispute so this means that the loan cannot be sold on or repossesion starting and then looking at litigating against them for the laws that they have broken.

From my understanding and the info on your loan, you are already due over 1k back and that keeps rising with every payment you make.

petermb_2

Quite Correct. Exactly what I had in mind.

homer_j_3

Purplebeat

You need to put in writing that you feel that what they are doing is wrong and that you wish to officially dispute this debt whilst the issues that you believe are present are rectified.

I would also state that you are continuing payments to whilst this dispute is sorted because you wish to protect your credit rating. Send your letter by recorded delivery and keep a copy with the proof of rec del. The purpose of doing that is that you are protecting yourself against them selling the debt in future to anybody else and if they go to repossess your car, no court will allow it whilst the debt is in dispute.

If you are threatened with either, then you should not panic but see it as an opportunity to add more ammo to your argument and defence.

I would then look at your options to litigate against them. There are certain arguments, a few of which I have quoted in my previous posts - so read them and as a result you could successfully void your contract.

Voiding your contract basically means the amount you borrowed is the debt and no interest can be added on top. As you have paid more back than the debt that would be left, you would get back the difference to you.

Clearly legal help does not come free but there are companies out there that will use a law that allows the solicitor to claim their costs on top of your claim so you do not have to reduce your claim as such.

purplebert

Thanks for all your help and advice in this matter, i will start taking steps to putting my account into dispute and looking into this further.

Thanks!