loan settlement figure help.

krazylee

hi all.

I took out a secured £3000 loan with welcome finance (a big mistake) 3 years ago to help with our wedding costs, the loan was about £120 a month for 3 years.

About a year into it i lost my job and fell into arrears aswell with other things, think i missed about 4 payments.

I got working again and started to make the usual regular payments again, then i got a phone call from them and the girl on the phone said would i be able to increase my payment to £163 to cover the arrears so i said yes.

Now this loan on paper should be finished now as its been 3 years since i took it out and as far as i was aware of the payments got put up to cover the arrears, so i rang them to get a exact date of when i would be finished and they said i still have a settlement figure or £2000....... how the hell could this be??

Tixy

The charges for missing payments and the extra interest you will be charged is very high on agreements for this type of lender.
Have you got a full statement of the account? if not write to ask for it so you can work out whether the balance is correct.
(sadly they usually are with Welcome)

krazylee

thank you for your reply.

they said they are sending out a statement, but i'm not home till mid next month i wont be able to see it (work away), its just so annoying that the payments got put up to cover the arrears yet they haven't as i'll take another 12 months or so to clear the new balance.

I know for one thing i will NEVER ever get another loan from welcome, no matter how desperate i am

neas

'about 4 payments' = 4 months missed at 'about 120 quid' + charges each time and the extra interest added onto that... would be about £500-600 on the money you should've paid.. and then prob stupid charges of about 400-600 quid... then add on the compound interest befcause you weren't paying as fast as you should've (i.e 1 year passed paying 120 quid instead of 160 quid) so the date slipped and instead of 120 quid paying off say 90 quid of loan and 30 quid of interest charges it was paying only 60 quid of loan and say 60 quid interest charges.

Interests a !!!!!!.. especially when its ontop of charges

Tixy

If you were in a position to settle the outstanding balance (be it £2k or whatever) they may well accept a reduced Full & final offer at the moment - if you go this route make sure you have written confirmation from them that your payment will be in full & final settlement before you make your payment - you could try offering 50% of the balance to see if they would accept (they are desperate for cash at the moment)

Common_Sense_2

i agree with tixy - they are a bit cash strapped so they may take you up on your offer of half as full and final settlement