does anyone have advice on HP

[worryhead]

My partner bought a car from welcome finance on HP early 2007, he was told that he had a years MOT, PPI insurance and gap insurance, he has recently gone on long term sick as he was a self employed electrician, but he has really done his back in and the doctors have given him sick notes to claim Income Support. He called welcome finace to make an insurance claim and they told him he has no Paymnet Protection and he has to keep up the payments or lose the car and still owe them over £6000.
We live separatly and i am in the process of an IVA so can not help him. He is panicking now as the payments would be his full benefit and more. Is there anything he can do??

[ianmillington]

Have you got the Welcome documentation available? If so, does this refer to PPI in any way?

Do you know whether any payments were made at all in respect of PPI?

ian

[worryhead]

He had lost his original form stupidly but its in his house somewhere but when he called Welcome today, they had a copy and said it does not include this and he has not paid for this, but he thought with him payin £13000 for a £5000 car this would include PPI

[CoverItAll]

Hi worryhead,

He should ask Welsome Finance to provide him with a copy of his original application to them, and the Finance Agreement.

If there is any mention of PPI in these, contact me and I will be happy to help.

[chris.g]

Your partner has the right to request a copy of the agreement. It may be better if he can sort it out though as they may charge for the copy.
xx

[worryhead]

He has finally found his copy and it does say next to PPI £0 so it did not include it, i know he should have read this but they guy did tell him it was included, now he is stuck, he really does not want to lose his car if he still has to pay this large amount, is there anything else he can do?

[CoverItAll]

If he is sure this was offered to him and he did not refuse it, he could fire a shot across their bows by asking them to produce proof that they discussed PPI with him, and that he turned them down, and at the same time ask them for a copy of their complaints procedure, and the address of the Ombudsman.

[chris.g]

If I remember rightly when we took our car finance out, even though it was F'sum loan, we had to sign a form to say that ppi and gap ins had been explained and we refused it.....Does this sound likely or is it my imagine playing again?
xx

[worryhead]

Yes he did sign a form to say it had been explained, but obviously he thought he had it they gave him Gap insurance just not the PPI, so i guess there is nothing he can do now. Just seems unfair that he has thought he had insuranc to find out when he needs it, its not there. he really can not afford to pay for this especially if they take it off him and he still has to pay. just really dont know where to turn for help.

[chris.g]

Maybe one of the experts might be able to say whether someone can come to a temporary arrangement for thing like this. Is it only the car that he cannot pay for?

[Adam Davies]

Hi
I am sure that welcome will prefer to come to some repayment agreement,how much could your partner afford and has he any idea how long he will be off for ?
Regards

[worryhead]

well he has a number of little debts to banks and student loans but these only come to £4000 so its mainly the worry of the car, i think the other payments can be negotiated, its just Welcome that will not budge and have said keep paying or lose it.

[worryhead]

Hi Andy,
Well Income support is on £55 per week so probably only about £50 per month at a push, he is not sure how long he will be off for but they have said a few months at least cause his back is so bad he cant move.

[Adam Davies]

Hi
If they take the car back there will almost certainly be a shortfall and that could be a few thousand.
I would get him to try welcome again and ask for reduced payments of £50 for three months with a view to returning to work after that and increasing the payments to repay the missed amounts.
Are you sure that the car is on HP ? because if not then they can't repossess it,let Welcome know that you know this and they may change their tune
Regards

[vickir]

Andy's right, on an HP agreement, the finance company cannot take the car back if he has paid over a third of the total amount payable, this includes his deposit and all the normal monthly payments he has made.
They can only take it back with a court order, he has the right to attend the court if they go down this route and ask the court to order reduced payments in his circumstances