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Mrsteve87

Hi All,

Having some trouble with the above.

I took a £1000 loan out with them around a year ago, my credit rating being very poor at that time it was costing me around 50% on top.

I hit some pretty hard times last year, and missed 2 payments with them - incurring me arrears and charges on top.

Now they have been hassling me for ages to get the charges cleared - which is fair enough, im just as keen to get rid of the arrears.

What concerns me is the charges they have thrown on me, over £200! which they say increases by 3% every month!

I called them to arrange paying off the arrears and came to a plan a few months back to increase my DD to knock chunks off every month - satisfactory i thought.

I called them last month to discuss settlement - and they gave me a figure of £1600!!! eh?!?!? i questioned them and said surely if im settling early i should qualify for a discount as stated in the contract and they refused on the grounds that i have missed payments.

They have also left a big line of defaults on my credit report, which i fail to understand considering i have been paying back the normal installments every month since missing 2

Are they right to be doing this?

Wutang_2

if you have been 2 behind then they are right in doing this.

Mrsteve87

What by the excessive charges AND the big string of defaults?

Getting rid of the discount i understand

CHR15

By falling behind (missing payments) you are in a continual loop of catching up.

e.g miss Jan payment and Febs payments clears Jan's missed payment, but then you have missed Feb

Pay March payment, that clears Feb's missed payment but you have missed March's

Pay April, that clears March's missed payment, but you have missed April and so on and so on...

Until you catch up properly by paying the missed payments IN ADDITION to your normal monthly payments, you will always be behind.

The contract has been broken by you due to the missed payments. The original contract stipulated monthly payments, which you failed to adhere to, so the contract has been broken.

Welcome are in a financial mess at the moment so if you have any other means, you could try to settle the lot by asking for a settlement figure much less than is owed.

This forum is littered with posts by people in exactly the same position as you...not that it gives you any comfort.

You can write to them and ask for a detailed breakdown of all charges added to your account.

insideWelcome

Mrsteve
Charges - Please note that welcome can only charge you for phone calls if they have spoken with you if the havent they can be removed.

Arrears - You will get a monthly charge on your arrears but if there not to high it wont be to bad.

Trust me CHR15 hit the nail on the head.

Mrsteve87

They charge me for everything possible, I just don't understand how I cab default when I'm still making payments and have been since dEcember?

CHR15

Because you haven't cleared the arrears.

They simply won't allow you to take a 2 Month payment holiday then start repayments again with no penalty. Every payment you are making is 2 Months behind.

It is a harsh lesson, but these lenders really are the bottom feeders. Their whole business model is based upon people defaulting, it's how they make their money.

Best advice is to:

1. Write to them asking for a full breakdown of charges (contest anything you don't agree with)
2. Request a settlement figure
3. Get another loan from elsewhere at a decent apr
4. Pay the vultures off and NEVER go back to high risk lenders.


Did you have PPI on the loan??
If so, why didn't it pay out?? (you may be able to reclaim it).

Mrsteve87

I couldnt get a better loan then, and i doubt i can now tbh.

The PPI part is a very interesting question however, ill have to look into it

already in the process of reclaiming it from different companies however

The only loan i intend on getting in the next 5 or so years is HP on a car - if im able to...