Reclaim Welcome Finance Charges

Many individuals who have taken out loans with Welcome Finance (now known as Everyday Loans) may be eligible to reclaim charges applied to their accounts. These charges can include payment protection insurance (PPI) premiums, administration fees, and other costs added to the loan agreement.

The most common claim revolves around PPI, a policy sold alongside loans to protect borrowers if they became unable to make repayments due to illness or unemployment. PPI mis-selling was widespread, and many individuals were pressured into taking out policies that were unsuitable for their needs or unaware they were even included in their loan. You might be eligible to reclaim PPI if:

You were pressured into taking out PPI.
You were not informed PPI was optional.
You were not made aware of any exclusions to the policy.
You were self-employed, retired, or had pre-existing medical conditions that would have made the PPI policy invalid.
The PPI policy was unsuitable for your needs.

Besides PPI, you might also be able to reclaim other charges. These could include:

Administration Fees: Look for charges applied for processing payments, handling arrears, or other administrative tasks. Some of these fees may be deemed unfair if they were excessive or not clearly explained.
Arrears Charges: If you fell behind on payments and incurred late payment fees, you might be able to reclaim them if they were disproportionate to the actual cost incurred by Welcome Finance.

To start the reclamation process, gather all your loan documentation, including the original loan agreement, statements, and any correspondence you had with Welcome Finance. This documentation will provide evidence of the charges you are disputing.

Contact Everyday Loans (formerly Welcome Finance) directly to make your claim. Clearly outline the reasons why you believe the charges were unfair or mis-sold. Include details like when you took out the loan, the policy number (if applicable), and the amount you are claiming.

If Everyday Loans rejects your claim, you can escalate it to the Financial Ombudsman Service (FOS). The FOS is an independent body that resolves disputes between financial institutions and their customers. They will review your case and make a decision based on the evidence provided.

Keep in mind that there might be time limits for making a claim. While the PPI deadline has passed, claims for other unfair charges may still be possible depending on the specific circumstances and how recently the loan was active. It’s advisable to seek legal advice or consult with a claims management company for guidance on your specific situation and the applicable statutes of limitations.

Successfully reclaiming charges from Welcome Finance can provide you with a significant refund. It’s worth investigating if you believe you were subjected to unfair practices or mis-sold financial products.