Welcome Finance / General Debt

[jb1985]

Hi AllI am new here so your advice is much appreciated. I have read various other peoples threads and have picked up some useful advise along the way but your expertise here will be much appreciated.Firstly, to give the background. I have £45k in unsecured debt relating to numerous payday loans companies, cheque cashing places, pawnbrokers etc (approx 100 creditors) and am paying this back via a DMP through Payplan @ £185.

 

 

I have two secured loans (Welcome Finance - more later, 1st Stop Finance) and a Mortgage with Birmingham Midshires.My finances havent been great since 2008 - my wife has had two bad pregnancies meaning she cant work and is having a similar issue with a 3rd pregnancny now - hence the payday loan debt in the past (gotta admit it was foolish!)I have re-negotiated our mortage with BM to interest only for 12 months after struggling to pay it at full price (£845/month) and they have consolidated my arrears.

 

 

1st Stop have suprisingly been helpful and re-wrote my loan over an extra 3 years saving me £150/month in the short term although it will cost me more to pay off over the long term. My car finance ends in 12 months and i am up to date with that so have no issues ther.Then there is Welcome Finance. And Ahmed in particular. Up until Jan 2011 i paid my secured loan for 3 years without missing a payment. Then i explained my situation and debts then and agreed payments would reduced to £90/month from £198.

 

 

Obviously interest was not froze and arrears and charges accruedOver the last few months i have missed several payments. (3 out of the last 7) Welcome are now harrasing me at work to start making full payments. They no i cant afford this. I have sent them an income and expenditure detailing this. They say the money i pay to payplan should be paid to them. I have explained that all others have co-operated and i am barely paying my unsecuured creditors £1/month. They have now threatened to pass this to collectors.

 

 

This is unknown territory for me as with the loan being secured i am unsure as to what they will do and would appreciate advise. I have been told several times verbally by Ahmed that they will not re-pocess peoples homes as they are basically up sh*t creek. But what will they do? Part of me thinks let it go to collectors and see if i can negotiate a new lower repayment plan but with it being secured i am scared the collectors will go for my home, not that there is any equity in it.

 

 

I am refusing to send further income/expenditures in as requested as they already have it. The position as of today is that i need to provide a full breakdown of all my income/expenditure + proofs + statements by next week or £3k in interest and charges are added to my £10k loan making that loan balance £15k despite payment £7200 over 3 years! ! ! ! !I am unsure if i took PPI as it was done through an agent. I also have Land Registery documents from Welcome so know they have a charge over the property.Your help is much appreciated.Thanks

[rebel11]

Hi jb

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

 

Please let us know how your problem has been resolved, it could help fellow Caggers.

[jb1985]

Hi jb

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

 

Please let us know how your problem has been resolved, it could help fellow Caggers.

 

Will do - any assistance is greatly appreciated!

[jb1985]

Hi

Sorry to be pushy but has anyone any advise they could offer?

[caro]

I've moved your thread to the Welcome Finance forum as people there may have more experience to be able to help you.

[AndyOrch]

Hi JB

 

You state its secured do you know if its regulated by the CCA1974.? Have you requested a copy of the agreement? What exactly have you received from the Land Registry an Interim CO application?

Have Welcome already got judgment ie a CCJ to enable the CO application?

 

If you could flesh the bones and then we can see what's happening here.

 

Regards

 

Andy

[jb1985]

I am unsure if it is regulated by CCA 1974 - I cannot find my t+c's for the original loan. I guess i would need to request a copy of the original agreement - Is there a letter template for this? Re Land Registery - all i have is what i received at the time i took the loan out in 2008 which is the charge against our property. Nothing since.Welcome have not pursued judgement atm - I have been told that they 'no longer pursue legal action' and 'dont repossess' homes and that they are looking at forwarding accounts to debt collectors to call in the o/s balances. My worrys is could a debt collection agency force me out of my home?

[AndyOrch]

A section 77 request can be found in the templates library, enclose a £1 PO and print your name or sign uniquely send recorded delivery.Because the loan was secured you need to check the CCA2006 amendments (Oct08) the threshold was removed 25K so your loan should be regulated by the CCA1974.

 

Secured loans under £25K are generally governed by the Consumer Credit Act of 1974 (with the exception of those offered by Building Societies or Local Authorities). For secured loans governed by the CCA 1974, Regulations set out the amount payable on redemption. The courts therefore can not interfere with an ERC calculated in accordance with these Regulations. If your secured loan is governed by CCA 1974 (not all will be check out s.16 for exempt agreements).

 

As the loan was secured a charge would be placed at the time of agreement dispensing with the need to attain a CCJ. So defaulting may lead to other methods of enforcement.

 

Regards

 

Andy

[jb1985]

A section 77 request can be found in the templates library, enclose a £1 PO and print your name or sign uniquely send recorded delivery.Because the loan was secured you need to check the CCA2006 amendments (Oct08) the threshold was removed 25K so your loan should be regulated by the CCA1974.

 

Secured loans under £25K are generally governed by the Consumer Credit Act of 1974 (with the exception of those offered by Building Societies or Local Authorities). For secured loans governed by the CCA 1974, Regulations set out the amount payable on redemption. The courts therefore can not interfere with an ERC calculated in accordance with these Regulations. If your secured loan is governed by CCA 1974 (not all will be check out s.16 for exempt agreements).

 

As the loan was secured a charge would be placed at the time of agreement dispensing with the need to attain a CCJ. So defaulting may lead to other methods of enforcement.

 

Regards

 

Andy

 

Thanks for the advice andy. I will look to clarify this ASAP and come back with the details. In the meantime, does anybody have any experience of Welcome sending an account to 3rd party collection? and if so what happens? In a way i am inclined to let a 3rd party have the account as hopefully it will freeze interest/charges and let me find a more suitable repayment plan whilst also reducing the debt with payments made, instead of paying and the balance increasing!

[AndyOrch]

Dont worry about third party DCA,s all noise no teeth even better if they assign it but Welcome very rarely do that.

 

Andy

[freakyleaky]

A section 77 request can be found in the templates library,

 

Regards

 

Andy

 

http://www.consumeractiongroup.co.uk/forum/content.php?414-CCA-request-letter

[jb1985]

so - what happens if they dont and are in default of my request?

[freakyleaky]

Then you send another letter if they don't comply in the time allowed.

Have a look here http://www.consumeractiongroup.co.uk/forum/content.php?609-Can-t-find-the-letter-you-want-Look-here

[AndyOrch]

Thanks Freaky for that link

[freakyleaky]

My pleasure Andy.

[jb1985]

My pleasure Andy.

 

thanks all - your advice so far has been great.

 

Does anyone else have any experience of Welcome sending a secured loan to a DCA?