Car finance

[worryhead]

I dont know if anyone can help me but just wondering if i could get some advice. My partner has car finance with welcome finance and has just been laid off last month, he contacted them as he thought he had payment protection in place but was told he does not. He asked if there was anyway he could have reduced payments until he finds a job and they have refused. They said he still needs to pay the full amount of £250 per month. His dad helpedhim with the last payment but unfortunatly is still out of work, he contacted them again today and they have said if he does not make the payment due at the end of the month they will take his car off him. He has never missed a payment in over 2 years. Can they do this or is there anything he can do?

[plasticdaft]

What made him think he had payment protection?
Unfortunately due to the way welcome and places like yes car credit work,they have the right to take the car back but cant understand why they wont agree to a payment break or something. Try talking to them again,this time try to get a supervisor and discuss the matter with them otherwise you may find that you are liable for other costs as well!!

Sorry its not better news.

Paul

[worryhead]

Thank you for your quick reply, he was asked when he signed the agreement if he wanted payment protection and GAP insurance, he said yes to both but they say he only agreed to GAP insurance. He has never had to check this before so is pretty upset that it is not protected. I will get him to call again and see if there is anything he can do.

Thank you again

[plasticdaft]

google "welcome car finance missing payments" and you will find about 400 pages on another forum dedicated to welcome finance.
It seems that plenty on there have missed payments so if you are forceful enough on the phone that you cannot make payments they will more than likely allow a break(its going to cost them to take away your car).

Let us know how you get one please.

Paul

[Adam Davies]

Hi
Check your agreement as there should be a clause stating that if you have paid a certain amount you can hand the car back with no further costs or that they will have to obtain a court order to take it back.
You would think that creditors would be more helpful wouldn't you, under the circumstances
Regards

[Michael Peoples]

From what you say Welcome would need a court order to take the vehicle as over a third owed under the agreement must have been paid. This is expensive and depending on the car and it's value this may not be cost effective for Welcome. They should agree to reduced or missed payments but also if he has not got a copy of the original agreement he should request one to make sure that payment protection was not included.

[plasticdaft]

Looking at the forums it appears that welcome are having lots of bother.

I would also back up Michaels plan to request a copy of the CCA to see whether it differs to yours.

[bravoone121]

I am having exactly the same problem with the said company....

Last year I had aprox 3 months off work due to medical reasons and made part payments, The account manager I had at that time was very good and said to make whatever payments I could whilst on benefits and to catch it up when i return to work... since then I have had approx 5 account managers every time it changes i get a call from welcome and charges £10 for the call... I have questioned this and nothing has been done about it.

Back to relevent stuff...

As i Said last year Feb time i have 3 payment breaks but still made a payment, Since then I have been making and extra £50 per month payment and have not missed a payment, untill last month when I got layed off from work. I went to welcome as soon as i got laid off and tried to see if there was something i could do (extend the term (more interest for them) lower the payments etc) she said (the account manager) all I can do is half the payment for this month as I am infront with the payments, no problem soo my partner paid the £150 for that month now half way through this month they are demanding a full £250, I explained I am starting a job next week and will pay £550 when I get paid (1 week over due on this months payment) she said it will be too late and she would have put my car up for collection by then. and that i am now £1k behind on my payments.... (I thought i was in front??)

ALso the £150 was taken out of my partners account early not on the gate agreed...

I like my car and want to keep it, the original contract was for £13k I have £6k left to pay (i think they dont seem to know ether..)...

I need the car for work and as I am to beleive that if they go for collection they have to apply to a court for the removal of my car.

Recap
* I have tried to be fair with them, I went to them in the first place to sort some thing out...
* I Signed up for payment protection and gap in the car sales office but only received gap
* I have not missed a peyment in 12 months and elected (my self) to pay more then I was required to catch up on the accont.
* I dont know if I am in front now or not, my contract manager said one thing then another.
* They are not been helpful to me at all.
* The account manager has taken payment earlier then the date agreed.
* I am starting work next week and offered to catch up this months payment (of which they are refusing), she also refused a part payment for this month.

Can they actually do this? I was looking through the Office of fair trading booklets and they are supposed to be helpful and not be threatening, I feel like I have done something wrong, I wish I had never told them about me comig out of work as I would have at least a couple of months before they would have had contacted me to find a job....

[worryhead]

Bumping you back up

[bravoone121]

Went to welcome today, a different branch and talked to my original accout manager.

He said if I put in a letter registered post a payment i want to make this month and how much i will pay in the coming months to make up for the lack of the full payment theres not much she can do about it. As i am still making payments and welcome would rather see money coming in on the account then spend extra taking the car off me. he also said that if they do take the car off me that the likely hood of me not paying a thing as i have paid over 1/3 of the account of already.

The arears currently stand at £1k and the interest on this means that my extra payments just cover this. I dont mind paying the extra as he has been decent with me, its just the account manager i have now is been very difficult.

God i want this account manager back....

[Michael Peoples]

You seem to have paid nearly half of what is due and could return the vehicle at this point without any further liability. Is it worth keeping this vehicle or would it be better to lease a car or get a new HP agreement in your partner's name? It may be something to consider given the amount of charges being added.

[plasticdaft]

Michael have you read the agreements from Welcome??

How do you know that if over half has been paid you can hand the car back with no bother? If this was the case loads more people would be doing the same thing but they cant,welcome get you trapped and lump extra interest on whenever they can.

Terrible company exploiting those with colourful credit histories!!

[Michael Peoples]

It will say on the agreement about termination and repossession rights or I doubt if it is a valid hire purchase agreement. Provided a default notice has not been issued and the rights to termination removed the client should be able to return the vehicle. It may be worth seeking advice from the CAB or a solicitor who can check the actual wording.

[marky b]

Hi Chap
you need to establish if you have a regulated finance agreement.
If you have then there is a minimum amount you must have paid and after that you can hand it back to the finance company and walk away.
this has no adverse effect on your credit score and is something you are entitled to do.
we did it a while ago on a renault that we still owed nearly 3 grand on.
hope this helps
mark

[vickir]

As i understand it, you can hand back the car once the half has been paid - providing the account is not in arrears - if it is you are liabile to pay the arrears as well as handing the car back.
If a finance company repossesses your car when you have paid over a third and they do not have a court order - you would get back the car and all the money you had paid to date.
You need to check the wording on your finance agreement