Welcome Finance loan

welrhsit

Hi ,

I am by no means an expert and fully admit, the majority of my situation is my fault. however i wonder if anyone can help.

about 5 years ago i took out a 4000 loan from welcome. after paying regularly for about a year i then changed jobs and struggled. they called me in and arranged a reduced interest rate (so he said) and reduced payments. i then kept up for about 6 months.

then i stopped paying altogether for quite a while. it went to court and they obtained an attachment of earnings order. At the last minute i arranged to pay 100 a month to a company/court rep called The Lewis Group.

i have never missed a payment in a year.

today i received a statement from welcome showing an opening balance of 6000 and a closing balance, after 1200 payments of 6500. they are charging 65 a month interest. is this legal? i thought the courts didnt charge interest? this will take me 16 years at 100 a month, paying 19200 for a 4000 loan?


Help!!!!

thanks

Regshoe

For your information - The Lewis Group are part of Cattles Plc who also own Welcome Finance. TLG are the debt collections arm of the company, they will have "bought" the debt for pennies in the pound - if you can get enough money together then you will probably be able to get them to agree a settlement amount for substantially less than what you owe them (as on average this is what they expect to get back from people at this stage).

Legally speaking as long as their paperwork is in order I believe they can charge interest at whatever rate is on the agreement that you signed (I don't think "selling" the debt will have affected this). they are also not obliged to accept a settlement for less than the current outstanding balance - but it is certainly worth a try.

Hippocampus

IMVHO, if a judgement has been obtained as seems the case, the agreement is terminated. And so you are only liable tor the sum sued for. No interest or other charges.

As far as I know. Check it out with the court?