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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I had a loan with welcome finance taken in March 2004 for £20

Customer Question

I had a loan with welcome finance taken in March 2004 for £20 000 over 15 years(180months). PPI was applied. my repayments were £300 p.m. I ran into problems with the account and had about 8 payments in arrears. Around 2007 I resumed regular repayments at £350 p.m. In 2010
a PPI claim was filed. The ombudsman ruled in my favour and I was reimbursed around £1100 after my arrear payments were repaid. My repayments were calculated at £250 p.m and a new contact drawn up.
However in a recent conversation with the company, I was told that I have 143 instalments outstanding with the amount including interest left to pay totalling around £35 000. Surely this new contract is ignoring all previous payments and treating this as a new contract started in 2010. The original contract with interest and PPi showed an amount of £54000 paid over 180 months.

Welcome finance refuse to see my side and are adamant that I still owe £35 000 over 143 months.
What recourse do I have?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, thank you for your question.

tdlawyer :

My name is Tony and I can help you answer this.

JACUSTOMER-1gnx52sj- :

hello Tony. My name is Mahindra

tdlawyer :

Hi Mahindra. Can I ask whether you have considered reporting this to the Ombudsman?

JACUSTOMER-1gnx52sj- :

No I have not. My wife took ill and passed away in 2011. My life is only just returning to a semblance of normalcy.

tdlawyer :

I'm sorry to hear of her passing. It is worth you considering reporting this to the ombudsman for them to investigate whether you are right or the lender is.

tdlawyer :

They have power to determine what is outstanding etc. for you.

JACUSTOMER-1gnx52sj- :

The last letter I had from Welcome said that I had 6 months to pursue this matter with the Ombudsman. 6 months has long since passed. Can I still take this up.

tdlawyer :

Is the reason for your not submitting it due to your wife's passing and your health state?

JACUSTOMER-1gnx52sj- :

Yes it is.

tdlawyer :

Then you should explain that in a letter now, and if you have medical notes, submit those too. The ombudsman might still be willing to hear your complaint. Usually it must be done in the 6 months, but sometimes that is not possible and you should make clear the difficult position you have been in.

JACUSTOMER-1gnx52sj- :

How do I present my case to the ombudsman?

tdlawyer :

You need to get a claim form from his website, here: http://www.financial-ombudsman.org.uk/

JACUSTOMER-1gnx52sj- :

I am aware of that. What specific information do I need to provide?

tdlawyer :

You need to previde details of the previous award and then set out the new agreement that you entered into. Then you make clear what the dispute is about what is owed and the term of repayment. Then you ask the ombudsman to decide who is right/wrong about their position.

tdlawyer :

Does this answer your question?

tdlawyer :

If this has answered your question would you rate the service for me please?