Finance company won't cash cheque (longish)

About a year ago I took out HP to buy a car from a company called Welcome Financial Services. As I had at the time a bad credit rating, they were the only comapny that would take me on - at a staggering APR of 42.1%! I set up a direct debit to come off my bank account on the

1st of each month as I get paid by cheque on the last day of each month so funds aren't available until the 1st. I got a copy of the agreement and acknowledgement that the first payment would be taken by DD on 1st April 2003.

First problem came on 31st March discovered that the DD had been presented for payment that day. As I hadn't been paid the DD was bounced by the bank. Ding! £30 bank charge. I phoned up Welcome to complain and they claimed that I had agreed to the date being changed. I hadn't, of course. Why would I? That would have meant a bounced DD nearly every month. I told them to change the date back to the 1st and sent a cheque to cover the payment. A few days later I received a letter from them stating that as the DD had failed, they were imposing a £20 fee on my account.

Lo and behold *exactly* the same thing happened the following month. Again I phoned to complain. Something must have been done because future payments were made as agreed.

I managed to get myself back on track financially during the following months and a couple of months ago took out a loan from Cahoot ( at a far more reasonable APR!) to pay off the HP on the car. I wrote to Welcome to obtain a settlement figure. This duly arrived and included in their calculations were "collection fees" of £40 - the fees for the two bounced DD's.

I wrote to them enlosing a cheque for the settlement figure less £40 and told them that as the DD's had bounced due to their actions, I wasn't prepared to pay these fees. No response, no receipt, and no sign of the cheque being cashed. After a week I wrote requesting a response. No response to that. In the meantime I cancelled the DD.

A couple of days later I got a phone call from the local Welcome manager to find out why the DD had been cancelled. I told him that I had sent a cheque in settlement. He claimed they hadn't received it. I therefore went to my bank, stopped the original cheque and sent another by Recorded Delivery.

Nothing happened. No cheque cashed, no receipt. Tonight I checked with Royal Mail. My letter had been delivered and signed for. I phoned the Welcome manager. He claims they hadn't received anything from me and demanded payment of the February payment.

Where do I stand? I do not accept that Royal Mail have lost 3 letters or delivered them to the wrong address. I suspect that Welcome may have received my cheques but have not cashed them in some sort of attempt to get more money out of me - maybe by cashing my cheque for the settlement figure less £40 they could be deemed to have accepted that my stance is justified?

Any comments?

Alan

Don't reply to this e-mail address - messages will be deleted unread. To reply to me take away the news and substitute alanc

Reply to
Alan Norris
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In message , Alan Norris writes

Legally, on the face of it, you are in the right. However, they seem to have you by the short and curlies, and will get their £40, unless you are willing to let them run up interest and charges, sue you, and then you defend the charge.

Its probably easier to pay the £40, they will miraculously receive your cheque, and they will be off your back and history.

You wont use them again, nor will anybody here probably, so that might be some consolation.

Reply to
Richard Faulkner

I am glad my car was paid for in full the day I bought it. The princely sum of 400.

If you have to get into debt you should avoid pawn brokers, cheque cashers and firm that actively seek out business from people with bad credit ratings.

You should contact a legal expert. I would recommend Citizens Advice Bureau if you don't mind spending an afternoon queing as their advice is free. You could also make a complaint to your local trading standards office and the car dealer who matched you up with the HP company.

It is very important that you write lots of letters and keep copies of correspondence. You should also invest in something to stop your car being repossesed. A wheel clamp and an alarm might do this.

Apart from the above general advice, it sounds like you are doing the right things.

Good luck.

Reply to
DP

reply to me take away the news and substitute alanc

If the payments were made in error, i.e. earlier than agreed, my first port of call would be my bank. Have a look at the DD guarantee scheme which is designed to give confidence to the likes of us that this sort of thing won't happen! You'll find them more responsive than the loan shark.

Reply to
Fred

They do not have you "by the short and curlies". You have cancelled the direct debit, and ensured that they have received payment by cheque through recorded delivery.

Send them one more letter by recorded delivery stating that you have received confirmation from the Royal Mail that they have received your cheque for the full anmount outstanding. Inform them that no further payments will be made, as you have discharged your liability, and if they wish to dispute this they should refer this matter to the county court, and leave it at that.

They should then bank your cheque and that will be the end of it. If they take this to court (for 40) they will have to pay court costs which will exceed the amount claimed, and you have sufficient documentation that you have discharged your debit, provided a cheque by recorded delivery, and have a copy of the agrement showing the agreed date for the DD payment to be made. Based on this, the judge will without doubt grant judgement in your favor.

Reply to
Clive

I've been to see my solicitor today. He is *really* looking forward to this, as his daughter had a similar experience with GE Capital Finance!

Alan

Don't reply to this e-mail address - messages will be deleted unread. To reply to me take away the news and substitute alanc

Reply to
Alan Norris

"Clive" wrote

Just playing devil's advocate - the OP may have proof that they sent

*something* by recorded delivery; but what if the finance company deny there having been any cheque in the envelope?? ...
Reply to
Tim

If he wants to pay BACS would probably be the easiest way to ensure payment is made. Get their bank a/c details and make sure the reference number relates to their documentation. It would be difficult for anyone to wriggle out of that one.

Reply to
Fred

to me take away the news and substitute alanc

Just to add to the mystery - in the mail this morning arrived a receipt from the finance company for a *cash* payment of of £3626.44. Nothing else, just a hand written receipt (but on their official receipt form).

Alan

Don't reply to this e-mail address - messages will be deleted unread. To reply to me take away the news and substitute alanc

Reply to
Alan Norris

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