Letter of PPI compensation from Welcome

[kittiej]

Hello everyone,

 

Would someone be kind enough to tell me if this is correct please?

 

Basically I took a loan out which had PPI 2 years ago. I should have paid 24 payments but missed 2 so I've paid 22 months.

 

The figures for the old loan are:

 

Should have paid - 24x264.09 = 6338.16

Actual paid - 22x264.09 = 5809.98

 

Arrears - 528.18

 

The figures for the new loan are:

 

Should have paid -24x190.95 = 4582.80

 

Total paid to date =5809.98

 

Therefore overpayment = 1227.18

 

The overpayment is the amount of compensation plus 8% = 1376.55

 

They then say that because the original loan is 528.18 in arrears that this will be taken out of the compensation to bring the old loan up to date. Is this correct?

 

To my mind I would have thought they should credit the old account for the full amount (6338.18) to basically scrap it and start anew with the new loan.

 

I can't help feeling they're tryng to pay me 528 less than I'm owed - or have I got this completely wrong?

 

I'm just trying to look at it like an invoice where if you're invoiced for a wrong amount you normally get a credit for the full amount and then re-invoiced with the correct amount.

 

Can anyone help please?

[dj1971]

Hi Kittiej,

 

Welcome to the forums.

 

Can you clarify this for us please?

 

You took out 2 separate loans, the first of which is £528.18 in arrears.

 

The second loan you have paid £5,809.98, how is this amount made up?

 

Welcome have agreed to refund your PPI on both loans and this amounts to £1,376.55.

 

Have I got it right so far?

 

DJ

[kittiej]

Sorry i didn't explain properly.

 

I've only ever had the one loan which is the one I have now and is in arrears of 528 and includes the PPI.

 

They are offering me the compensation and have sent me new agreements to sign to put me back to where I would have been had I not had the PPI added. The thing is as well these loan agreements say 48 monthly payments of 190.95 and i can't see any mention on these new agreements the amount I've already paid so they're confusing me.

 

Thanks for your reply.

[dx100uk]

uh uh

 

no deal

 

they cannot make you sign a new loan.

 

they must restructure the old agreement.

 

do not sign the new one

 

dx

[kittiej]

how do they restructure the old agreement please dx?

 

I haven't signed anything yet - to either accept their offer or the new loan agreement as it says 48 months on it instead of 24 which is the term remaining.

[dx100uk]

thats their problem not yours!

they know how to do it the FOS have told them several times...

 

just don't sign the new one.

 

basically.

 

your payments should reduce by XXX sum as it no longer contains the requirement to pay PPI.

 

then the ppi payments already made should be deducted from the total cash price of the PPI on the agreement.

that resultant figure is then removed from your outstanding balance.

 

but as i say

 

thats not your problem!

 

DX WAVES TO THE 6 GUESTS>>>>>>> hello spies.

dx

[kittiej]

So on the info they send me should it actually say restructure and not CCA agreement?

[dx100uk]

dunno not seen the letter

 

scan your agreement

remove all pers info inc barcodes etc but leave all figures and dates.

goto one one of the many free online pdf converter websites

convert the image to pdf format.

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

browse to your pdf file and upload it

hit close this windows at the bottom below upload it box

 

 

 

dx waves to the 4 guests now

 

dx

[kittiej]

OK will have to try later as can't get to the scanner atm

[dx100uk]

aww..... has lunch hour finished at welcome

the guests have gone.....

 

dx

[kittiej]

lol at dx

[kittiej]

I'm trying to upload these letters. I got it to work then!

 

OK the first is my existing loan agreement, the 2nd is the new loan agreement they want me to sign and the 3rd is the letter they sent me.

 

Would someone kindly take a look and give me their opinion? I'm not happy with signing a new agreement as it says 48 months for a start and I'm already 24 months into my existing agreement.

Edited August 1, 2010 by kittiej

[Fester Tester]

The FOS will back them up re. the signing of the new agreement. Basically, it will be backdated, and is a reflection of what you SHOULD have signed, had PPI not been applied in the first place.

 

Unfortunately, the chances of you seeing a bean without signing are pretty minimal. However, I'd not advise signing either.

 

You need to consider exactly what you want out of this deal. And whether the risks outweigh the benefits.

[kittiej]

The thing is it doesn't actually tell me in plain writing that they are going to backdate the agreement.

 

There is another part where they say the compensation will be minus the 2 payments I owe currently with the PPI, but if they do a restructure then I won't actually be in any arrears and will have overpaid by 1227 but they want to pay me 848.37 and I'm not sure this is correct.

[dx100uk]

always check what you upload.

 

can you read postage stamps?

 

use my pdf method

 

dx

[dx100uk]

The FOS will back them up re. the signing of the new agreement. Basically, it will be backdated, and is a reflection of what you SHOULD have signed, had PPI not been applied in the first place.

 

Unfortunately, the chances of you seeing a bean without signing are pretty minimal. However, I'd not advise signing either.

 

You need to consider exactly what you want out of this deal. And whether the risks outweigh the benefits.

 

 

the fos are down on record in their info pdf as stating quite clearly that reclaimants should not be forced to sigh a new agreement after an offer of a refund on PPI.

 

the loan should be restructured

 

don't sign it.

 

dx

[luluspice]

I am in the same situation. Can't get any sense out of FOS! Seems to be, for example - If my original loan was over 5yrs, taken out 2 yrs ago, then I will continue to pay lower monthly payments for 3 more years. Thenit is paid in full. No refund of payments made. to date However the paperwork sent by Welcome does not show anything like this - and again they added ppi!!!! I will not be given all details until I sign - so guess I will never know as I ain't signing anything!!!

FOS have asked Welcome for copy of original loan as it seems to have gone missing! I know that if they do send a copy it will show a change has been made to the length of time the loan is to be paid over. In other words they are keeping the £4000 already paid and charging me again by lengthening the term. I do not understand why the FOS tolerate these blatant law breakers. Do you think there is a political agenda? How come other banks have been fined etc for dubious practices yet Welcome are being allowed to continue trading?

[Fester Tester]

the fos are down on record in their info pdf as stating quite clearly that reclaimants should not be forced to sigh a new agreement after an offer of a refund on PPI.

 

Really? News to me. Where can I see this PDF?

[kittiej]

Who knows Lulu?

[dx100uk]

Really? News to me. Where can I see this PDF?

 

section 3.2 a)

 

of CP09/23 on FOS site.

 

a) where the firm considers that the consumer would not have bought the policy

the firm sold and would not in all probability have purchased any alternative

PPI policy, the firm should cancel the policy and return the sum of all premiums

and any interest on those premiums paid by the consumer – where necessary, the

firm should also restructure the loan as if the policy had never been taken out;

 

 

there is more too much to copy here.

 

 

dx

 

[Fester Tester]

Says nothing new. And doesn't preclude the creditor from requesting a new agreement be signed.

 

My case has now gone to an adjudicator, so no doubt the result of that will clarify things. Eventually.