Welcome secured debt sold to MKDP - HELP on Full and final settlement

[Et Contra Pacem Regis]

Re post 12, by way of demonic advocacy: faced with that arguement I think Welcome would say:

1. There wouldn't be a shortfall. You just think there'd be a shortfall because you're working out interest based on the APR. All you've proven is that the APR is wrong. (ditto for interest rates if that's what you've used, unless of course the rate is variable...)

2. APR is not a prescribed term, therefore we can get a discretionary enforcement order under s127.

3. Even if the agreement does not explicitly say when fees will be paid, that is not a breach of Schedule 6 para 5. The fees are paid within the regular payments. Here are some sums (like their "statement of price" thing) that show how.

[Et Contra Pacem Regis]

1. Please read Schedule 6(4), Column 1. The interest rate is only a prescribed term if the agreement is:

(a) running account credit or

(b) within the Schedule 1 paragraph 9(a-c) exceptions.

 

Unless the agreement falls within those limits the interest rate is not prescribed.

 

2. the APR is not the same thing as the interest rate. The APR is never a prescribed term.

While it is naughty of them to mis-state non prescribed terms, and might even get them a slap on the wrist from the OFT, it does not prevent enforcement. Section 127(3) of the Act is only an absolute bar on enforcement if there is no document containing the prescribed terms signed by the debtor. It doesn't matter if it's not signed in the prescribed manner, or if any of the schedule 1 information is missing; if the prescribed terms are there, the court can enforce.

 

If you've calculated interest from the APR, rather than the interest rate, that does not establish that the interest rate is wrong.

 

 

3. Welcome would dispute that you end up with a shortfall. If you brought a claim against them, they'd want to see your sums in more detail than they are posted here - how do you get £x interest from £y credit and whatever rate or APR? What is the relevant equation? and so on.