Welcome Finance - Statement of Account Letter January 2011

[ajl2006]

I'm looking for some help/advice - after getting into a mess a few years ago, I spent a lot of time and effort in getting my credit file in order, with things paid off or plans set up to clear debts, yet the largest amount was with Welcome Finance, and they were the only company I could not get a response from.

 

I made several attempts to Welcome them using relevant letter templates, I've sent off postal orders to cover the cost of Credit Agreements etc, sent everything with recorded/signed for deliveries, yet had no correspondence from Welcome since 2005 - until last week, when I have received a letter claiming to be an "Annual Statement" covering September 2008 to January 2011.....?

 

My understanding is because they have not replied to my earlier requests for proof of credit agreements etc, that this "debt" is unenforceable after this time period?

 

I suppose one other valid thing to mention is that I paid around £2500 off the loan, after agreeing a settlement with Welcome, in 2005 - however there was no note, looking back, that this was in "Full and Final" Settlement.

 

Any help or suggestion would be appreciated, as I am stuck!

[Sand-Dancer0191]

When in 2005 was the settlement made...date is important here

The annual statement is not valid either...

since Oct 2008 the creditor must provide a yearly statement and also regular Notice of Arrears (six monthly) without which they are not entitled to enforce any debt, and lose the right to claim any arrears that may have become due during the period of non-compliance.

[ajl2006]

It was July 2005 that the payment was made, almost 6 years ago. If I've not received an annual statement then, what does that mean?

 

So far, I have only had one "Annual statement" mentioned above, and had no letters of arrears whatsoever from them? I did find it strange, as i would have expected them to be chasing the apparent debt if it was the amount they say it is!!

[citizenB]

I think what sand dancer is saying is that if you havent paid anything or acknowledge the debt for 6 years, from date of default, then it becomes statute barred. The Debt still exists but as the company has made no move to collect on it for that period of time, the OFT say it is unfair of them to continue pursuing.

 

I would say that an annual statement that covers the period September 2008 to January 2011 does not fulfill the requirements that came into force in 2008. As already mentioned, an Annual statement is required, plus a notice of any arrears.

 

Have you at any time been sent a default notice, issued under s87(1) ?

 

Have you kept copies of all the letters you sent along with postal order receipts and posting slips ?

 

I will try and find someone who will be able to offer more advice.

[dx100uk]

right well they cant really bite you now

you dont mention what figure is on the statement?

it might well be an idea to get the agreement out

welcome are major fleecing agents and you'll have all manner of chagres/insurance to reclaim if its worth pulling their string

 

dx

[Sand-Dancer0191]

""My understanding is because they have not replied to my earlier requests for proof of credit agreements etc, that this "debt" is unenforceable after this time period?""

this part is not strictly true.

.The debt IS in dispute for non compliance and it may well be unenforceable depending on what CitizenB said about a D/N.

But as dx100uk also said...get the info and reclaim the charges

[ajl2006]

Morning Everyone, and thanks for the replies - apologies I've not responded sooner!

To answer a few questions - yes, I do have copies of the original letters sent, as well as recorded delivery slips etc.

The statement amount shows £6500 - I'm very interested in trying to claim for any charges etc from them!

 

In the meantime, I've had a letter from Welcome providing copies of the "Credit Agreements" - and there are issues raised here.

they have sent through three agreements, each superceding the last, however the following problems arise:

* I have only ever signed one agreement, and been to their local office to me once (for the origianl loan).

* I have not signed any other paperwork with Welcome.

* The dates on the following two agreements are clearly modified and marked up - holding the signatures to the light, my three signatures align perfectly.

* the last "agreement" is dated after I paid the loan off with a £2500 cheque - I have correspondence from welcome confirming receipt & clearance of the check, however there is no acknowledgement of it being in "Full and Final Settlement" - I know, my bad.

 

Any advise on the next step would be great, as I want to ring them up and shout at them, but I know that's not the right move to take!

[citizenB]

The very last thing you should do is speak to them on the phone. Any communicating entered into now should be in writing.

[dx100uk]

ok

 

well what you have here is very common for welcome and the tactics they pull.

 

there are many threads here whereby welcome have filled out new agreements without the customers consent.

 

pers i'd write back and directly accuse them of faking the signiture on the other agreements [state what you have here]

and clearly stating that you are more than happy for this to go to court & even encourage them to do so .

 

i would also demand that unless they refund all the unlawful charges + the interest they have charged you on them

and refund the mis-sold PPI [and whatever other insurances they have fleeced you with] too - you will have no alternative then to hand the matter over to the relevent authorities as is they have committed fraud.

 

dx

[Dustyd]

The exact thing happened to me, and when eventually getting to court they could mot provide the originals. Have you thought of smoothly a handwriting expert? Wouldn't cost that much to at least get some doubt raised.

 

Dusty

 

Morning Everyone, and thanks for the replies - apologies I've not responded sooner!

To answer a few questions - yes, I do have copies of the original letters sent, as well as recorded delivery slips etc.

The statement amount shows £6500 - I'm very interested in trying to claim for any charges etc from them!

 

In the meantime, I've had a letter from Welcome providing copies of the "Credit Agreements" - and there are issues raised here.

they have sent through three agreements, each superceding the last, however the following problems arise:

* I have only ever signed one agreement, and been to their local office to me once (for the origianl loan).

* I have not signed any other paperwork with Welcome.

* The dates on the following two agreements are clearly modified and marked up - holding the signatures to the light, my three signatures align perfectly.

* the last "agreement" is dated after I paid the loan off with a £2500 cheque - I have correspondence from welcome confirming receipt & clearance of the check, however there is no acknowledgement of it being in "Full and Final Settlement" - I know, my bad.

 

Any advise on the next step would be great, as I want to ring them up and shout at them, but I know that's not the right move to take!

[MrZ]

since Oct 2008 the creditor must provide a yearly statement and also regular Notice of Arrears (six monthly) without which they are not entitled to enforce any debt, and lose the right to claim any arrears that may have become due during the period of non-compliance.

 

Can you point me to any legislation regarding this? Specifically the loss of the right to claim any arrears that may have become due during the period of non-compliance?

 

Thank you

[citizenB]

Can you point me to any legislation regarding this? Specifically the loss of the right to claim any arrears that may have become due during the period of non-compliance?

 

Thank you

 

Here you go..

 

 

 

 

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/161927-amendments-default-notices-cca.html#post1736169

A new amendment has been made in case of failure to give notice of sums in arrears in CCA 1974. Section 11 CCA 2006 inserts a new section - 86D - that sets out the consequences for a creditor or owner if he fails to give a notice as required by sections 86B or 86C.

 

If the creditor or owner fails to provide a notice of sums in arrears when required to do so, then during the period of his failure to provide the notice (i.e. from the date that it was required to be given until the end of the day on which it is eventually provided), he is not entitled to enforce the agreement. In addition,

 

The debtor or hirer is not liable to pay any interest that relates to the period of the creditor or owner’s failure,

 

Notice of default sums

Section 12 of CCA 2006 applies to situations where a debtor or hirer under a regulated agreement incurs a default sum.

 

A creditor or owner must give the debtor or hirer a notice in the specified form when a default sum becomes payable as a consequence of a breach of the agreement. For example, you hire a car for the duration of your holiday. There will often be a penalty sum payable if you incur a fine from using the car. The car-hire company might say this is to cover, for example, administration charges. Either way, certain sums are payable if you breach the agreement. Where this applies, the creditor must provide notice to the debtor, of the amount they must pay. This only applies where the default sum exceeds a specified amount.

 

Additionally, a creditor may only require a debtor to pay interest (in connection with a default sum) 28 days after the day the notice was given to the debtor. So if the creditor fails to give notice to the debtor then he can not enforce the agreement until notice is given.

 

“Default sum”

The term ‘default sum’ has been redefined in s.18 CCA 2006. “Default sum” now means: a sum payable by a debtor or hirer in connection with his breach of a regulated agreement (e.g. a charge imposed for late payment of an instalment due under the agreement or a fee imposed for exceeding a credit limit on a credit card). A default sum does not include sums that, as a consequence of a breach of the agreement, become payable earlier than they otherwise would have done. Nor does it include interest.

 

Interest on default sums

Section 13 has been amended so that a creditor or owner may only require simple interest to be paid in respect of default sums payable by the debtor or hirer. This includes sums payable under non-commercial or small agreements.

 

Minimum 14 days after Default notices

 

The new minimum period after which a creditor or owner may take action (in respect of the agreement after having issued a default notice) is now 14 days. It used to be only 7 days. Section 14 CCA 2006 amends section 88 of the 1974 Act to create this extension.

 

Additionally, under s87, a creditor or owner must give the debtor or hirer a default notice in the prescribed form if he wishes to:

- terminate the agreement;

- demand earlier payment of a sum;

- recover possession of any goods or land;

- treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred; or to

- enforce any security

 

Section 88 is also amended to allow the Secretary of State to prescribe information in the default notice to include any matters relating to the agreement (e.g. information about whether the agreement includes a term providing for the charging of post-judgment interest).