In your shoes, I would put the situation, much as you've described it here, in writing to both Welcome and the debt collectors. In the letter, if it's affordable, I would offer to pay the total due in the finance agreement less amounts paid, less PPI and less any penalty charges that were added if it can be confirmed in writing that this will be accepted as full and final settlement. It's worth putting things in writing as these people have a habit of saying one thing today then denying having any record of it in a month or two.

Hi all, in may 2007 i got a car from a garage the finance was through welcome, they stated i must have PPI though i could cancel it within a month if i wanted,

So after a week i contacted welcome to state i wanted to cancel the PPI, Welcome ignored my request this went on for about 9 months, Then one day i phoned them and said i would make no further payments untill this was sorted.

Welcome contacted me and asked me to go in to their local office and they would sort it out, They made up a new agreement minus the PPI.

However the agreement was for the original amount and did not take in to account what i had already paid nor would they return the PPI i had paid, Also on the new agreement they alterd the date to 2 weeks later after i had signed it.

I still refused to make any payments and told them to come and take their car back, Then in september 2010 Welcome said they had no further interest in the car and the debt had been sold to a third party.

I was not informed the debt would be sold on before this, The debt was sold to MKRR debt collection they added a further £4500 interest on to the account, So i explained to them everything that had gone on, and asked them to collect the car, they also said they have no interest in the car and would not re-posesse the car.

Since then i managed to get the interest removed that MKRR put on but they said they still want £4500 within the next 7 days.

In the meantime i done a HPI check and the car is still registerd as been on finance to Welcome Finance..

Any help on this issue would be apreciated.