Welcome Finance

[Rich44]

Hi all.

 

2 years ago I rather stupidly took out a loan to pay off a credit card that I couldnt make a dent in as I had been ill for nearly 3 months with acute glandular fever.

 

Ended up taking a loan for about £1800 from Welcome, anyway moved house and told them about it and never heard anymore until recently. What with a new baby and the miscarriages my partner had suffered I totally forgot about Welcome as they had not been in touch to arrange some kind of payment my fault I accept that I was stupid.

 

Anyway basically I have arranged to pay £20 a month till January when they will look at it again (how good of them lol) and in the meantime i've got to fill in a statement of my income/expenditure.

 

I paid the first year of the loan with no problems at all at £170 per month (loan was over 36 months) and the latest statement they say they want

 

£5800 from me!!!

 

I only borrowed £1800 I didnt know they were going to shaft me that badly over it not to mention the PPI they said you have to take out or you cant have the loan which I believe they sell then add to the loan and then add interest at 29% to the whole caboodle

 

I am going to write and ask them for all the paperwork etc a list of their charges etc but can anyone offer advice on how to deal with these people especially as they just keep turning up on the doorstep and expecting to come in. They also threatened me with bringing bailiffs round the other day - not too bothered about that one I dont own anything and I wouldnt let them in anyway but not the point.

 

Am I right in thinking as its an unsecured loan they would have to get a CCJ first at which point the judge would set the amount that should be paid back and they could only then get a bailiff involved if I breached that?

 

Basically HELP!!

[blanchie14c]

Hi Rich, as a 'Gold' member i'd have thought you knew roughly where you stood as i'm only a newbie maybe you've been active in other parts of the site eh, anyway, i have had dealings with welcome. Now i am paid 4 weekly, and was able to set up collection on my 4 weekly payday so i never missed any payments, and inccured their charges. I had 3 loans 1K 2K and 3k, over a number of years, and thankfully, now paid off. As for advice, well you are in the right place, in this forum you will uncover a welth of info on harrassment and doorstep collectors etc.

I think if i were you the first avenue i would take is the dispute amount owed. this will get them off your back for the short term to allow you to research your position. I think i'd look at the PPI as being mis-sold, and research that. You need copies of all three of your credit files, my loans were recorded at all three so assume yours will be. you need to know if a default has been issued, that way when you CCA them, you can ask for a copy of the default notice along with a copy of your CCA and statements. The statements should list details of penalty charges too, so again, another avenue to follow....

To be honest, i knew at the time that welcome offered desperate loans for desperate people, and i was desperate. I could not get credit anywhere else (due to incorrect defaults) but things are getting better, and you are to be commended for your action, i.e. coming here and seeking solutions. I don't have any finalized cases as yet, but plenty ongoing ones. Many users are more in the know than me, and will post further advice in due course.

Hang in there!

blanch

[Rich44]

Well to be honest most of my dealings have been with other situations and I wanted to be sure of my facts before gobbing off to them I think £5800 for borrowing £1800 is well ott esp considering I paid 12 x £170 already

 

I am beginning to think that I may just be better off filing for bankruptcy as have my overdraft (paying at £140 a month) and 3 credit cards to pay off. I dont have any assets and I dont own my own home so might be the better option.

[wizzer]

Rather than go bankrupt, it is worth looking at the IVA as an alternative option.

They assess your earnings and work out what you can afford to pay to your debts and review it every year. You do that for 5 years then any outstanding dbts are written off. It shows you want to pay the debt and helps get you back on your feet. although I am told they are quite tough with expenditure, it would save the hassle of dealing with. You would need to get proper advice from someone maybe through Debtline or something else government backed though.

 

That said I hope that you get a result from Welcome through negotiation on the PPi and the OBSCENe charges that are made. If it's a personal loan, good chance many of those charges are claimable!

 

As I'm new to this, someone else may be able to give you other ideas, although if things are that tough at the mo, i would get proper advice!

 

GOOD LUCK!!

[Rich44]

Yeah I kinda knew about the IVA thing but with no assets seeing as bankruptcy only lasts 12 months now I would be out of the woods quicker with that route than an IVA.

 

I earn £16,000 a year and now have to keep both myself, my partner and our baby as at the moment she is not able to work so 3 credit cards (£2,800, £2200, £787) £140 per month to the bank and £6000 to Welcome I am leaning more towards bankruptcy right now but obviously I would get advice first