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Welcome Finance in default

The Financial Services Compensation Scheme (FSCS) faces a fresh wave of payment protection insurance related claims after declaring loan provider Welcome Financial Services Limited (WFSL) in default.

The FSCS has said that the firm is unable, or likely to be unable, to pay claims against it in relation to what it described as a “substantial number” of PPI policies that it has sold since 2005. Welcome Finance is no longer taking new applications for personal and secured loans such is the scale of it’s financial woes. Welcome Finance sold a substantial number of PPI policies to its customers, and a declaration of default opens the way for those customers, and any others who might have valid claims against the firm that are protected by the FSCS, to make a claim.

PPI claims should not be affected

In an agreement between the FSCS and WFSL, the FSCS will base some of it’s staff within WFSL and use records provided in order to process claims. WFSL will continue to process PPI claims for customers who were sold a PPI policy between 2003-2005, with the FSCS picking up the compensation tab for policies sold from 2005 onwards.

Further to this, we can still look to file cases against the underwriter of the insurance if you took your loan out prior to 2003.

How many WFSL customers have been sold PPI

There are hundreds of thousands of customers who may have been mis-sold PPI by WFSL, and although the process may be a little more complicated, Your Money Claim have the knowledge and experience to navigate it, and reclaim any mis-sold PPI by WFSL.

Staff offered incentives to sell PPI

One of the most scandalous parts of this saga is that WFSL generated huge profits whilst selling PPI and other insurances to it’s customers, many of whom will be completely unaware that they have been duped by the company. The lender offered huge incentives to it’s staff, and clearly didn’t have adequate controls in place to ensure the policies were correctly sold, probably due to the huge profits they were generating.

Irresponsible lending

WFSL have clearly been acting irresponsibly for such a long period of time, and now appear to be shunning their responsibility in paying out compensation to the hundreds of thousands of customers who are due a refund. Many of these customers may have found themselves in financial difficulties due to the additional costs added to their loans. What will WFSL do for these customers who may have defaulted on loans, or even had County Court Judgements (CCJs) registered against due to not being able to pay for the costs of the PPI that was illegally added to their loans? We shall have to wait and see.

Get your claim in

Speak to Your Money Claim, we are experts in recovering mis-sold PPI from companies just like Welcome Finance. If you’ve had a loan with them, even if you don’t remember account details, we can help. We will do the checks, and manage your claim throughout the process, keeping you up to date at all times. We’re on hand to answer any questions, so why not get the ball rolling today. There is a good chance you didn’t even know you had PPI.

Welcome Finance in default

Welcome Finance in default

About the author

Daniel Lee

Company Director

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