Welcome Finance Hell

SKS1981

Hi there,

I'm a first timer so bear with!

Welcome loan 2000 (18/02/06)
Setting up fee's 820
Duration 36 months

Missed 6 payments due to operations - advised against using the insurance for which I pay for each month (welcome)

First ever Statement received 09/02/09
Balance 2810
Interest rate 45%

So in three years - the duration of the loan I have paid off 3381.10 and they are now saying I still owe 2810. How can this be?
If I was to pay the remaining balance I will have paid.... 6191.10 which is 102% interest!

Can anyone help please? I'm really at a loss i've tried talking to them numerous times and asked for clear statements but they are really usless and keep asking me to go in to discuss. My stance is that if they can't answer it over the phone how can they face to face?

I've called the CAB this morning and left a message.

Can anyone advise on what to do, is this illegal?

Thanks in advance

bryanb

Interest rates are usually annual. 102% over 3 years is 34% per annum. I know that's a simplification but hope it helps.

~Brock~

SKS1981 wrote: »

Missed 6 payments due to operations - advised against using the insurance for which I pay for each month (welcome)

Why? That's what it's there for isn't it?

hur575

Welcome finance rate is a rip off, not only the loan rate but the add on stuff that they sell with the loan. Well I took similar loan to you for £2000, with all the policy on top my repayment is £169 a month for 36 months, if I pay that rate until the end I will pay back £6084, that why trying my best to pay it off as lump sum as soon as I can.

SKS1981

hur575 wrote: »

Welcome finance rate is a rip off, not only the loan rate but the add on stuff that they sell with the loan. Well I took similar loan to you for £2000, with all the policy on top my repayment is £169 a month for 36 months, if I pay that rate until the end I will pay back £6084, that why trying my best to pay it off as lump sum as soon as I can.

It's really awful - the terrible thing is that I now am able to get a loan at a normal interest rate from my bank to pay it off in one lump sum. I think I will just have to do that and put it down to experience.

Thanks for your comments:T