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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We have a secured loan with Welcome Finance which we have

Customer Question

Hi, we have a secured loan with Welcome Finance which we have been paying off for the past 9 years, We did default on a few payments approx 2yrs ago, maybe longer. However since then we have been paying them back regularly monthly at a higher payment.
The original loan was for £22675, we have been paying £430 a month since defaulting, the original monthly payment was approx £350 a month.
We have managed to save approx £15,000 and have offered Welcome £12000 as final payment to settle the loan. Unfortunately they are saying they cannot accept this and want a minimum payment of £17940. They say we still owe them the original amount of £22675 even though we have been paying them monthly for approx 9 years ( albeit missing a couple of payments as mentioned). Could you advice where we stand please.
Submitted: 11 months ago.
Category: Law
Expert:  Ash replied 11 months ago.

Hello my name is ***** ***** I will help you.

Have you been getting annual statements which show payments made, interest charged etc?
What were the arrears?

Alex

Customer: replied 11 months ago.
163;2000 arrears still apparently, we have had annual statements , unsure of actual interest rate but according to a statement from 2014 approx £330 of the £430 was interest, we believe we're still paying approx £300 interest a month.
Expert:  Ash replied 11 months ago.

Does it say what interest is being charged and payments made on the statements?

Customer: replied 11 months ago.
it says the interest each month and shows our monthly credit of £430. It has an entry each month for 'interest' and then another for 'simple interest'.....don't know what that is......
Expert:  Ash replied 11 months ago.

Ok - is it is a regulated agreement as it was under £25,000

You should write and complain about how much you have been paying and charge. Then ask them to investigate this, which they must.

If they do not find for you then and only then can you complain to the Financial Ombudsman. They offer a free service and can investigate your complaint for free. This will be done very thoroughly and they Welcome will be required to disclose all documents etc.

The Ombudsman can be located at: www.financial-ombudsman.org.uk

But they will only consider a complaint once you have a 'Final Response' to your complaint from Welcome

Can I clarify anything for you about this today please?
Alex

Customer: replied 11 months ago.
Thankyou for your help, just a final question, if we have to go to the ombudsman should we continue making monthly payments until this is settled? I have just reduced my working hours and really do not wish to keep paying £430 a month.
Expert:  Ash replied 11 months ago.

Yes you should do so, otherwise you could default and they could seek an Order for sale on the house.

I realise you dont want to keep paying, but if you have overpaid you would get that back with interest.
Does that clarify? Alex

Customer: replied 11 months ago.
Thankyou so much it has really helped us. We will set the ball rolling tomorrow.
Expert:  Ash replied 11 months ago.

Great, let me know how it goes? If I could invite you to rate my answer before you go today please, otherwise the site does not credit me for the time spent with you today. Thanks and good luck. Alex

Ash and other Law Specialists are ready to help you
Customer: replied 11 months ago.
Alex, we did exactly as you informed us to do and after a initial response from Welcome Finance of basically 'so what, do what you have to do', we reaffirmed our commitment to pay £15k but informed them that if it all went to the Ombudsman that off was no longer on the table. We got a call from them very late on in the afternoon by the branch manager who agreed to our terms. We paid off the account in full. Thank you
Expert:  Ash replied 11 months ago.

Great news! Alex