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Edwin Miles. Underwriting Manager

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Can Welcome Car Finance still chase me for payment after 7 years & car was given back to them?

I believe Welcome Car Finance have stopped trading. Can they still chase me for payment after 7 years and the fact that the car was given back to them? This seems crazy to me! Please help!

Posted by Lorraine on

Answer.

Hi Lorraine, i'm afraid you may need to take a little legal advice on this subject. I know Welcome Car Finance have stopped trading, but i also know that they are still collecting outstanding debts. It does seem strange though that you have handed them the car back (so they have the asset) and they are still chasing for payment.

I can't really offer any more advice but good luck and if you need car finance in the future please try our services as we search from a large panel of lenders to get you the best deal possible dependant upon your personal circumstances. Please make an application and if approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

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Question.

Hi, I've just looked on your site and i didn't know that welcome finance is not trading any more.

I had a car off them and paid in full and didn't miss one payment. I've just today gone to a garage to get another car on finance and it has declined me saying that i have not paid my finance on my car in full with welcome and i have paid every penny back to them. What can i do about this?

Posted by Martine on

Answer.

Hi Martine, you need to call Cattles PLC on 0845 658 0890. They own Welcome Car Finance.

Posted by on

Question.

Hello, I bought a car off Welcome finance in 2007 and the car was never put into my name.

So, when the tax was due i tried to tax it but couldn't because I had no logbook. I got back to Welcome finance and was basically told tough and I got told to phone the DVLA.

But the DVLA told me it was down to the finance company to have put the car in my name and to have had a logbook sent out. I then got back on phone to welcome finance a number of times and still got no further forward and as i could no longer drive the car as the tax had expired and could not tax it.

The car sat for months on my drive then months later someone from welcome finance rang to ask why the car wasn't getting paid for and a number of phone calls went on for weeks and they asked where the car was parked. Then a week later the car disappeared. I never heard nothing for 4 years until recently i received a letter from the court saying i owe £13,000. Can anyone give me the best advice on what to do?

Posted by Paul on

Answer.

Hi Paul, thank you for using our Q&A. I'll try my best to give you some advice.

When you initially purchased the car it is down to the dealer to register the vehicle in your name and not the finance company. Why you weren't told this at the time i have no idea. As you couldn't tax the vehicle i assume you just stopped paying for the car? If this is the case it would have impacted your credit history massively so i would advise against ever doing that again in the future.

Did you ever establish who took the vehicle? Did Welcome Finance repossess the car of was it stolen? I'd advise to get on the phone to Welcome and get all the facts. If they did repossess the car 4 years ago they would have sold the asset at auction but as you had signed a legally binding agreement you still would have been indebted to Welcome for the interest and any insurances etc.

Get a breakdown of what you owe and go from there. It does seem strange that this has only materialised 4 years later and there may be some legal loophole that will allow you to get away with some of the debt but i'm not a solicitor so i don't know. Get all the facts and a copy of your signed original agreement and then seek some free legal advice. Kind Regards, Edwin

Posted by on

Question.

Hi, thanks for the reply. I never found out who took car as the police had asked for it to be moved with it having no tax so i phoned Welcome and told them that the police asked for vehicle to be removed and they said someone would be out to collect it and that's all i know.

I never heard anything from 2007 until the 2nd of July this year which is a county court judgement proceedings with an attachment of earnings with the value of £13,000. Surely when i signed a legally binding agreement it was on purchase of a car so how would it be possible to still pay welcome when i never recieved a car in my name or up to what i had agreed for? Have you any useful information on what i could do about my county court judgement? Thanks

Posted by Paul on

Answer.

Hi Paul, unfortunately not. All i can suggest is to get a breakdown of the £13,000 supposedly owed to Welcome Finance and take some free legal advice. Sorry i can't help any further. Kind Regards, Edwin

Posted by on

Question.

Hello, I have car finance with welcome.

I bought a Fiat Punto in 2008 and the cost to be financed was £6630 after adding in various insurances i was told i'd have to have the total price came to £14,070. After about 11 months i became seriously ill and had to give up work. I tried to claim on the insurance i'd been sold but was told i didn't qualify, so after complaining to welcome the insurance was cancelled and was refunded £600 which was paid to welcome.

Afterwards i was told by Welcome my payments were still to be £280 per month. I could not afford this as i was unemployed awaiting a liver transplant and agreed to pay £140. Since 2010 i have paid a reduced amount with their agreement, however recently my account was moved to their Luton office. I received a phone call from the said office and was spoken to by a very rude girl who advised me that my reduced payments had gone on too long and i had to pay the full amount.

After explaining the previous agreement i thought i had i was told it was not good enough. I have now received a letter from them requesting I inform them where the goods are kept, quoting i am committing an offence if i don't. Why are they doing this?

Posted by Steve Crossland on

Answer.

Hi Steve, this does seem a very strange case. Has the agreement elapsed in time - how long is left on the original agreement? Was a new agreement signed when your repayments were reduced? If not and your current agreement has elapsed or about to elapse Welcome will be nervous about getting their money back so want the asset (the car) to sell at auction to raise some cash. Please get back to me with the agreement details and then i can advise further. P.S - is the car at your home address and is it still in your possession? Edwin

Posted by on

Question.

Edwin, thank you very much for your feedback. It is very illuminating and does explain why all of a sudden their attitude has changed. The original agreement started in oct 2008 and was for 48 months. No other documents have been signed except the originals in 2008. The agreement i have for making reduced payments has always been completed over the phone and i was led to believe that i would pay less for longer and this was acceptable to welcome. In fact i'd just ageed to increase my annual payments to 13 per annum instead of 12.

Posted by Steve Crossland on

Answer.

Very interesting Steve, you may wish to seek a little legal advice as to where you stand. I'm very surprised they didn't make you enter a new agreement with the new reduced payment terms.

As it stands the car is still legally theirs but when the agreement elapses i'm not sure how you will stand as you'll still have underpaid them but the agreement has finished. Please let me know how you get on. Have a good weekend. Edwin

Posted by on

Question.

Hi, I am in a similar position to Steve. I signed the initial agreement in 2008 and when i became ill i halved the payments over a longer time although this was done over the phone and nothing was ever signed. When I spoke to them on the phone last month, the guy told me I had paid over 2 thirds of the car and they legally couldn't come up to scotland and take it off me but they are going under fast and none of their offices are open they have passed the debt collection to a call centre down south. Can they take me to a small claims court in scotland and I am not the primary account holder I was the guarantor? What happens if I sell the car with the outstanding HP on it? can they take it away from the person who bought it? The car has changed keeper for the third time already ...

Posted by Amanda on

Answer.

Hi Amanda, unfortunately as you're a guarantor they can take you to court if there is still money outstanding. What is the car worth and how much do you have left to pay? You can't sell the car as it has finance attached. Anyone carrying out a HPI check would see this. The car legally still belongs to Welcome until all payments have been made however if the original agreement has elapsed and you didn't sign a new one i'd strongly recommend to get some free legal advice. Good luck. Edwin

Posted by on

Question.

Hi, We received a letter in May of this year saying that we owed over £10000.00 to Welcome Finance. It is addressed to my partner and he never took out any loan with them (although he suspects his ex wife did).

We went to our solicitor and they have phoned them and found out it was a loan from Welcome finance. Our solicitor phoned them and the last contact they had with anyone regarding this (although again not my partner was April 2006). As this is over 6 years we have been told that they have to write it off and would not win a court case regarding this by our solicitor. Hope this helps

Posted by Fiona on

Question.

I had a car from Welcome which was for my ex partner but the finance was in my name. We split and he took the car and stopped paying for it! They came to collect car which I told them he had it and where he was. They took the car back but now I am getting letters saying I owe them over £9000!

This was over 6 years ago and now i'm just getting letters. The debt is not mine as it's his but I don't know what to do about it! I don't work, have 3 children and I am devastated he has mounted this much debt in my name! Advice much needed please.

Posted by Sally Smith on

Answer.

Hi Sally, thank you for your question.

As the finance agreement was in your name you aren't in a strong position to force proceedings against your former partner. I strongly advise that you take a little legal advice from a lawyer ASAP as it does seem incredibly strange that Welcome Finance are demanding this amount back after such a long time.

There may well be a clause in your agreement that allows you to get out of the debt potentially. If you don't have your agreement i'd also advise getting this ASAP from Welcome directly. They will have a copy. I do hope you get this issue resolved swiftly and i'm sorry i couldn't be of any further help. Kind Regards, Edwin

Posted by on

Question.

Hi everyone,

I have had a similar experience with a car i bought in 2009 from Welcome Finance. I took finance out and PPI on a Kia Picanto for around £6,700. This would have been in the July and by October I was unfortunately made redundant, so I contacted my local office, which was in Harlow Essex and told them what had happened and they told me that I was not covered by the PPI because I had not long taken the insurance out.

I asked what I could do as i could not repay £225 a month as was out of work. They suggested I came down to the office and talk about my options. When i arrived I was kept waiting for nearly 3 hours, then a salesman said what he can do is set up a new agreement over 10 years, which will bring down my monthly payments, then once i am back in work thy will tear up the agreement and go back to the original one.

I agreed to this as I felt I did not have any other option. I also asked them to take the car back, but they just made a lot of excuses in why they could not do this. In the January i started a new job, so i contacted the Harlow office to inform them of this, but someone answered saying that welcome had gone into receivership and their was no one at this office any more. So, with this I asked what i was meant to do, as I taken out this agreement and needed to cancel it. They just said wait until someone gets in contact with you.

In the march the Kia that I had bought broke down on me and when i had it towed to a garage, they told me there was so much wrong with it, it was a danger to drive and the repairs and work that needed doing to it would be more than the car is worth, at this time the car was valued at £2000. The garage told me the car had been in a accident and the whole one side of the car was a different car altogether. I was so shocked, not only did i now have the car for over 10 years, it was not safe to drive. The final straw came when I received a letter from the people who are collecting the debt for welcome saying I owe then over £15,000 for a car i cant even use. Please can you give me some advice as this has ruined my life and my credit rating for years?

Posted by Amanda on

Answer.

Hi Amanda, thank you for sharing your experiences with our readers and i'm horrified to hear how you have been treated by Welcome Car Finance. These are the exact practices which led to their downfall as a business.

I would like to add that i'm not a qualified legal advisor but, it sounds like you have a counter claim on Welcome Finance if you can prove that the car they sold you had indeed had a hidden past. Also, that fact that they wouldn't cover the payments when you lost your job even when you purchased PPI is astounding. My advice would be to take some free legal advice and then armed with the information you need contact the Financial Ombudsman Service (https://www.financial-ombudsman.org.uk/) as they look at each complaint with an open mind. They assess the facts and come to a fair decision based on these facts. There may well be an issue with the timing of your complaint with the Ombudsman in that the claim is now 6 years old however, it's worth finding out.

Has anyone else on this forum had any similar experiences with Welcome that they have challenged and won? If so, it'd be informative to hear what processes you have been through. Kind Regards, Edwin

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