1. Who Were Welcome Finance?
Welcome Finance was a UK subprime lender that issued personal loans, secured loans, and car finance, mainly to borrowers with poor credit. The company collapsed in 2011, but its loan book was sold to debt collectors, who still pursue old customers for repayments.
2. Why You’re Still Being Contacted
If you borrowed from Welcome Finance years ago, you may now be contacted by a debt collection agency. This happens because:
- Your debt was sold to a debt purchaser when Welcome Finance shut down.
- A third-party collector has been instructed to recover the balance.
- Records may show your loan as unpaid, even if you believe it was settled.
3. Debt Collectors That May Chase Welcome Finance Loans
Common debt collection firms linked to Welcome Finance debts include:
- Cabot Financial
- Lowell Portfolio
- PRA Group
- Moorcroft Debt Recovery
- Other FCA-regulated agencies
4. Can Welcome Finance Debt Collectors Still Enforce Old Loans?
- If under 6 years old (England & Wales): The debt can be enforced in court.
- If over 6 years with no payment or acknowledgment: The debt may be statute-barred under the Limitation Act 1980, meaning it cannot be enforced in court.
- If a County Court Judgment (CCJ) was issued before the limitation period expired: The debt is still enforceable.
5. Common Problems With Welcome Finance Loans
Many customers reported issues such as:
- Mis-sold Payment Protection Insurance (PPI).
- Excessive interest rates.
- Poor record keeping after the company collapsed.
- Aggressive recovery tactics from debt collectors.
6. Your Rights When Contacted by Debt Collectors
- You have the right to request proof of the debt (original loan agreement).
- Collectors cannot harass or threaten you.
- They cannot enter your home without a court warrant.
- You can challenge the debt if it is statute-barred or wrongly recorded.
7. Steps to Take If Contacted
- Do not ignore letters – ignoring may lead to court action.
- Request proof – ask for a copy of the signed credit agreement.
- Check the limitation period – if over 6 years with no payment or acknowledgment, it may be statute-barred.
- Dispute unfair charges or PPI – you may be entitled to refunds or write-offs.
- Seek legal advice – before admitting liability or making payments.
8. Payment Options If the Debt is Valid
If the debt is enforceable, you can:
- Pay in full to settle.
- Negotiate a reduced full and final settlement.
- Arrange an affordable repayment plan.
- Consider a Debt Management Plan (DMP), IVA, or bankruptcy if struggling with multiple debts.
9. How to Stop Harassment From Welcome Finance Debt Collectors
If collectors act unlawfully:
- Write a formal complaint to the agency.
- Report them to the Financial Conduct Authority (FCA).
- Escalate to the Financial Ombudsman Service (FOS) if unresolved.
10. When to Seek Legal Help
Get professional debt advice if:
- You’re unsure whether the debt is statute-barred.
- You’ve received a CCJ claim form.
- You believe the debt includes mis-sold PPI or unfair charges.
- The collector refuses to stop contacting you after disputes.
Frequently Asked Questions
Q1. Do I still have to pay Welcome Finance debt?
Yes, if it’s enforceable. If over 6 years old and statute-barred, you may not have to.
Q2. Can debt collectors chase me for Welcome Finance loans?
Yes, if they legally own the debt, but they must prove it.
Q3. What if I had PPI on my Welcome Finance loan?
Many loans included mis-sold PPI. Legal advice may help recover charges.
Q4. Can Welcome Finance debts still show on my credit file?
Debts over 6 years usually disappear unless linked to a CCJ.
Q5. Can I ignore Welcome Finance debt collectors?
No. Always check validity—ignoring could lead to court action.
Q6. Can I be taken to court for old Welcome Finance loans?
Yes, if enforceable and within the limitation period, or if a CCJ already exists.
Conclusion
If you are being contacted by Welcome Finance debt collectors UK, don’t panic. Many of these debts are old, poorly documented, or statute-barred. Always request proof, check limitation periods, and dispute unfair charges. With the right legal advice, you can stop harassment, challenge unenforceable debts, and secure a fair resolution.