Welcome Finance unsecured loan help?

steamouk

Hi,

I took out a loan in Jan 2007 for 2000 pounds over 36 months (at a rate of 105.97 pounds per month, totaling 3814.92). The loan was due to end in March 2010. I phoned Welcome Finance yesterday and they said that as I had missed 5 payments during the term of the loan the loan it would end in August 2010 by the time interest was paid off. Then I asked them what the balance was and they said 1525 pounds or 1750 pounds to settle (including fees). I then asked how at a rate of 105.97 p/m the loan would end in August, the gentleman put me on hold and come back to me and said he will need to speak to head office to find out why so much was still oweing on the loan? Has anybody got any ideas of how and why this would happen?? I was expecting to pay back about 150 pounds in charges as when the 5 payments were missed I accrued that much in letter chasing but to pay over 1000 pounds extra has got to be illegal?

The gentleman from Welcome phoned me back and advised that there was 6 payments missed and they acrue interest at a rate of 3.75% per month (one payment missed in Sept 07, Feb 08, March 08, April 08, July 08 and in March 09) and with charges the 1525 pounds was correct? Does anybody know how I can calculate this accurately? Welcome are sending me a statement which I hope can shine some light on how this is calculated but any ideas on how this is calculated would be helpful?

no_cigar

Without getting myself into trouble... I can with 100% certainty that when you receive your statement (if ever) you will have numerous charges for phone calls, letters sent and home visits if they have made any. As well as this, there will be numerous charges under the heading CAPITALISATION. No one at welcome who you speak to will be able to tell you exactly what these capitalisation charges are, because they do not know. As you may or may not know, welcome finance are in big trouble at the moment, with shares under suspension and directors being investigated for various non compliances in the financial industry. Again I can say with almost 100% certainty if you challenge your loan and its legality through the many reclaim company's or the cccs they will quash your loan and the amounts owed. The vast majority of loans welcome have given to customers, especially around the time you got yours, are not worth the paper they are written on.

Jamesf81

Captialisation is the monthly interest charged on the balance.

If you take the previous months balance then add the monthly rate of interest detailed in your agreement it will or should match up with amount shown under capitalisation.

Sol00

Capitalisation also includes charges ie. telephone call, letter etc and each are charged at £10. You will see the charges twice on your statement for the month as they detail the charge and then include it in the capitalisation. It's designed to confuse the customers.

chickencurry

I've recently received my statement from Welcome for a personal loan I defaulted on in 2003 and there are so many charges on there, especially under the heading of capitalisation, and I currently owe more then I did to start with and thats with me making payments for the last 3 yrs at £20 per month! Can I do anything about this?