old 1990's £5k Yescar Loan moved Welcome - car went bang - got CCJ, sold to cabot, still paying £10PCM, owe +£8k!! - cabot want more £PCM

[Arley Man]

My first post & hoping for some advise. Sorry but a bit long.

 

Purchased a car & Three year warranty through "Yes Car Credit" back in the mid 1990's (total of approx £5K including interest). Yes went "Pop" a year or so later & it was passed to Welcome.

 

After about two & a half Years to Car developed a Suspension issue. We contacted Welcome to arrange repair under the Warranty. Only to be told that when they took over they transferred to Warranty to another company & it was only for TWO Years & so Car was no longer covered. We were notified of the change to Welcome, but not  the Warranty.

 

After a long discussion(over several weeks). It was decided to return the Car as it could not be driven, still paying for it & we could not afford the repair (During this time my Wife had to give up work due to illness & I became her Carer).

 

It eventually went to Court (advise given from CAB) & a CCJ was issued for £10 per month, with payment to Cabot

 

Fast forward approx 24 years to now & in the last few weeks have received two letters from Cabot(which is the first time we have heard from them since the creation of the payment plan for the CCJ). Both asking me to up my payment to £40 per month & the outstanding Balance is £8,730.52!!! I'm 59 & at £10pm I have nearly 73 more Years to pay.

Questions. 

 

I read that Welcome Car Finance is no longer trading & went out of business on the 2nd March 2011.

Is this correct?

 

Being on Disability/Carers Benefits since the late 90's & recently had to go on a Debt Management Plan. Can this be added to the Plan?

 

Doing some Maths we have already paid off approx £3K, so Welcome/Cabot must at some point added £5K to the original Debt. Does this sound right?

 

Any other advise eg could this debt be written off as had a similar issue with Provident, but that has been written off?

 

Thank you in advance.

[dx100uk]

if the £10pcm was set by a judge they cant change anything. ignore them totally.

 

now looks like as every welcome customer you've been had blind and by CAB .

 

the warranty played no part and as with all warranties was totally worthless anyway. you should not have handed the car back under voluntary surrender you should have demanded its repair under your consumer rights, wasn't your car belonged to welcome.

 

have you moved since the ccj and not in WRITING informed cabot of your correct and current address?

 

dx

 

 

[dx100uk]

oh and i see you are in a DMP...

blindly paying any DCA's?? WHY.. they are not bailiffs!!

 

start a thread in the debt self help 

and list your debts

and bump the DMP!!

do it yourself

[whitelist]

Slightly confused

 

These sub prime car loans were notorious as their entire business model was designed on sourcing finance for people with a low income and/or tarnished credit history.

 

They fully anticipated a high percentage would default and hand the vehicle back. (Voluntary surrender)

These vehicles were third rate and sourced from auctions with inherent faults and milage around 70k. About the time things start to wear out and need replacing.. As stated peviosly these vehicles belong to the finance company so any major faults were down to them to rectify.

 

If the loan for the finance was only Five grand, (Total amount payable) which includes front loaded interest, how can it now be £8,730.52?

 

How long ago was the CCJ awarded and what was the amount originally claimed?

Edited September 17, 2022 by whitelist

[dx100uk]

I bet they got post judgemental interest .

 

Dx

[whitelist]

These were very high APR loans with an average 57% APR so doubt a judge would allow that. 

 

Thought if the court sets a repayment schedule then post judgemental interest will not apply. Especially £10 a month on an almost 9k debt?

 

Has the Debt Collection Agency been adding unlawful interest post judgement?

Edited September 17, 2022 by whitelist

[dx100uk]

anything is possible with a loan of this age and its known players.

 

there is one guy here that took out a loan with welcome for £5k that is now £65k

[whitelist]

If post judgement of 8% was allowed that on its own will greatly exceed the £10.00 a month repayment ordered by the court. Need the OP to update and add clarity

[dx100uk]

PJI can be at the loan rate if its written in the agreement as so.

 

yes cant do anything without paperwork.