Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By grez66
#7122 A while ago I took out a loan with welcome finance at 47% apr (ridiculous I know but I was desperate). About 3 months ago I asked them for a settlement and they gave me a figure of £3560 to settle. I had managed to get a different loan at 8% apr to cover it so I called them and said I if I paid £3400 now would that be the end of things. They said yes so I paid the money and expected that to be the last I heard from them. I had just bought a house with my partner as well so moved house and everything was fine. However, I have just received through the post forwarded from my old address a demand from them for £450 saying i need to pay it to clear my balance. They are saying that they expected me to pay the remaining £160 on the balance and because I hadnt been in touch about it they were charging 47%apr on the outstanding balance that had pushed it up to £450. I only hadnt been in touch as I had moved house and didnt get the letters and I didnt think I needed to get in touch as I thought id finished with them. What do I do as I cant afford to pay £450 now and dont want it to spiral. Surel I have got some rights here?
#7124 What was agreed in writing ?
By grez66
#7126 Nothing it was all done over the phone

Have I been very silly?
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By JaneClack
#7147 ....well it would have been easier to prove as now it is your word against theirs. They also have to prove why they took this large sum and why interest etc has been added.
By ramesesqc
#7155 Ther's a very old (17 century) case which is still good law today. It says that the payment of part of a debt can never be satisfaction of a whole. This means that you can pay the sum agreed, and they can still come after you for the balance. Unless certain conditions are satisfied. Main ones are payment by a third party, or payment by a method they're not entitled to. However, there is something called "estoppel" which means the law will act fairly, and if you relied on the promise by welcome, and acte on it ( borrowing the money to pay them off) then they will be "estopped" from claiming the remainder. However, it's a complex part of the law, and only a Judge would be able to decide. Try talking to Welcome. They may be OK about it