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Welcome Finance

(2 Posts)
TisOnlyaFleshWound Tue 27-Aug-13 14:23:15

Hi I just wondered if anyone could give any advice on what to do with this debt.

Basically (before he met me) my husband took out a car loan with welcome finance of £5000 - with ppi. He lost his job and asked the company what to do as he couldn't afford the repayments.
They said the ppi would not cover it as he had not paid enough payments yet.
The other piece of advice he was given was to sell the car privately and use that money to clear off the loan. The advisor did stress that he shouldn?t be telling him this but this was the best way to clear the debt and if he did this Welcome Finance would take the payment and transfer any monies owed to an unsecured loan. He followed the advisors ?off the record? advice and sold the car privately and received payment via direct bank transfer.
Unfortunately the man who bought the car cancelled payment and called to say there was still HPI on the car. (I don't know why husband didn't think of this at the time - he was in a bad state emotionally and obviously financially at that time) So now no car as well as a loan.
Anyway he went to meet an advisor who said he needed to take out an unsecured loan to cover the original one - he did inform them that he would not be able to pay the monthly payments but they said it was his only option really. So now it was a £9000 unsecured loan.
He sorted out a payment plan but it was getting a bit silly an example of this is that he would pay £120 a month towards the loan but would end up with £140 in charges from letters, constant phone calls (even when we were not in and they knew we were at work) and added interest.
Fast forward (thanks for staying with me) as he could not afford to repay all of this - and Welcome would not lower payments, he's now had a court letter for £14,491. They did offer a settlement figure of around £3000 a couple of years ago but he was not in the position to pay that.

Any advice on if there is a chance they would take lower or knock the charges off etc? He's got to fill in the court expenditure form and send that off but if a bit unsure as he doesn't agree to the £14,491 due to the charges etc.

Obviously we're read about welcome finance and all of the problems everyone else has had with them. Just wondering if anyone has any advice or experience with them.

Sorry for the essay
thanks smile

Talkinpeace Tue 27-Aug-13 21:50:26

They said the ppi would not cover it as he had not paid enough payments yet.
Utter utter bilge.
THe insurance cover starts the day the policy starts even if the premium is paid in installments (think car or house insurance)

Go to the CAB with as much paperwork as you have (date order, newest on top) and immediately make a formal complaint against the finance company to get the PPI to cough up

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