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Payments to your creditors
Every month you will receive a statement from us showing the
amount you have paid to us, and the amount we have paid to each
of your creditors. You will continue to receive statements
directly from your creditors. Please check these carefully and
notify us immediately if you continue to be charged interest.
Contact from your creditors
Many customers come to Welcome Solutions with complaints of
creditor harassment by telephone call or letter. This should
cease once we become involved, and get arrangements in place on
your accounts. Some creditors may initially object to your
gaining professional advice, and you should notify us
immediately if this is the case. You are not only protected by
the Office of Fair Trading but also the Administration of
Justice Act 1970 section 40.
Altering your monthly payment Unlike a loan, your monthly payments are based on your ability to pay. Naturally, the more you pay the sooner you will repay all your debts. If your situation gets worse, then you may reduce your payment though this will mean that it will take longer for the debts to be repaid. We also allow you to make lump sum payments if possible e.g. from inheritance, annual bonus, etc. Default notice A default notice is simply a notification that you are in breach of the original credit agreement, of which you are aware whenever you cannot meet the normal monthly payment. Creditors are legally bound to issue these on a regulated credit agreement if they wish to take further action in the future. Some creditors may issue these as a scare tactic - for most it is prudent protection. The issue of a default notice is not necessarily a statement of intent by the creditor, so much as an acknowledgement of the fact that you cannot pay the original amount agreed. Debt Collection Agencies Many creditors pass accounts on reduced payment arrangements to DCAs because it is more cost effective for them. The initial contact from them can appear to be very threatening, especially if the lender has not informed them of our involvement, but do not worry. We will send a proposal to them and negotiate with them on your behalf accordingly. DCAs have no greater powers than the creditors they act for, but often are able to accept reduced payments and other concessions more readily. Your credit rating It is important for you to understand that if you do not keep up with repayments on loans, credit cards, etc. your credit rating will be adversely affected. It is also true to say that the level of debt outstanding may also adversely affect your rating, as some lenders may consider you to be already over committed when reaching a lending decision. Even though creditors readily accept reduced payment offers on a debt management plan, they may register a default which will affect your rating. If you are already over committed, do not be tempted to use further credit to support your outgoings unless you are sure that you will be able to continue to maintain your minimum payments. It is very often inevitable when over committed, that your credit rating will be adversely affected. |
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Licensed to give Debt Advice and to undertake Debt Adjustment by the Office of Fair Trading.
Data Protection Reg.Z9680870 Company registration No. 5929111 Consumer Credit Licence No.592088
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