Secured Loan

silverback18

I have a secured loan with Welcome Finance, this was a £22,000 loan, it is over a period of 20 years, I have had the loan for just over 5 years, now I am pretty poor with finances, I never really check statements etc, but due to sites like this, I am more aware of issues, I recently checked one of my statements for this account, my repayments for this loan have always been the same, as set when I took the secured loan, this repayment is £298.07, on the statement it shows this amount every month as a credit, BUT, it shows a debit from the account each month under the name of Capitalisation of between £338.02 - £341.06 the figure varies every month, I also noted that my outstanding amount on the account goes up every month, I now owe, 5 years down the line more than I originally borrowed, can anyone explain what could be happening here, it seems to me I am being ripped off, as far as I am aware it is a Loan this is what it is named as under product, so of course I expect interest, but I would of thought that after 5 years the amount outstanding would be on the way down, or have I misunderstood something completely

theartfullodger

can anyone explain what could be happening here

Yup: Sadly, welcome Financde are considered by many to be a bunch of evil money-grabbing b****ards who should be closed down. They may of course be wrong...