Illegible Credit Agreement

CHR15

dizzy1974 wrote: »

to get the monthly repayment i was behind with.

Why do i getthe impression some of these comments are from Welcome employees!

Far from it, I dislike these companies as much as you do. I would never help, or advise anyone to take out a loan with this type of company for the reasons you outline above.

The simple facts are that your original credit agreement will tell you how much you borrowed, how much the apr is, how much you agree to pay each month and how much you are being charged overall.

The month you fell behind, the contract was broken (you broke it by not repaying at the time or amount you said you would).

The Original agreement is not worth the paper it is written on as it will not include your missed payment charges and additional interest incurred.

It's easy to say (with hindsight) that you should never have gone near this company in the first place, but the reality is that for you to go to them for a loan, nobody else would have lent anyway.

Even if it weren't Welcome who you borrowed from, but another similar high risk lender, you would be going through exactly the same issues with them instead.

Ask them for a Settlement figure or a simple up to date statement and go from there, the original agreement is pointless.

I wish you good luck.

BackOnTrack

dizzy1974 wrote: »

The copy they have sent me says that the amount borrowed £15K, the total amount repayable is £55K.

15k borrowed 55k repayable!?!?!?!?!:eek:

I'd default and let the judge decide if that is reasonable and should be enforced.

Enfieldian

BackOnTrack wrote: »

15k borrowed 55k repayable!?!?!?!?!:eek:

I'd default and let the judge decide if that is reasonable and should be enforced.

And your point is?

Actually I think the amount I am having to repay on my my mortgage over 25 years is too high in comparison to the original amount borrowed. Where will that leave me? Oh yes...... Homeless....

OP was fully aware of the repayment amount when they took the loan, they made the decision to go ahead and now must deal with it like an adult

BackOnTrack

Enfieldian wrote: »

And your point is?

Actually I think the amount I am having to repay on my my mortgage over 25 years is too high in comparison to the original amount borrowed. Where will that leave me? Oh yes...... Homeless....

OP was fully aware of the repayment amount when they took the loan, they made the decision to go ahead and now must deal with it like an adult

My point is that loan terms should be fair and reasonable.

Unfair contracts can't be enforced; this has been shown many times in court where even parties who have voluntarily and have understood the contract terms have signed up if the contract is later considered unfair in court it is neither valid or enforceable.

Unless you have an 18% mortgage over 25 years your not going to be paying anything like the total interest charge the OP is in this case and we're nto talking about a short term payday loan here either.

Unless we are talking about a 100 year loan or some other absurdly long loan period here a total amount repayable that is more than 350% of what was originally borrowed is outrageous and try to apply terms like this the lender quite drankly doesn't deserve to get their money back.

zppp

BackOnTrack wrote: »

My point is that loan terms should be fair and reasonable.

Unfair contracts can't be enforced; this has been shown many times in court where even parties who have voluntarily and have understood the contract terms have signed up if the contract is later considered unfair in court it is neither valid or enforceable.

Unless you have an 18% mortgage over 25 years your not going to be paying anything like the total interest charge the OP is in this case and we're nto talking about a short term payday loan here either.

Unless we are talking about a 100 year loan or some other absurdly long loan period here a total amount repayable that is more than 350% of what was originally borrowed is outrageous and try to apply terms like this the lender quite drankly doesn't deserve to get their money back.

There are no interest rate caps under consumer credit law.

An example of what the OP may have agreed to is something along the following lines;

£15000 taken out over 20 years at 18% APR = £55k
£15000 taken out over 15 years at 12% APR with PPI costing £10k = £55k

Point is this is a secured loan, so the terms for these are sometimes longer than the max unsecured 10 years.

~Brock~

BackOnTrack wrote: »

My point is that loan terms should be fair and reasonable.

Unfair contracts can't be enforced; this has been shown many times in court where even parties who have voluntarily and have understood the contract terms have signed up if the contract is later considered unfair in court it is neither valid or enforceable.

You are, of course, prepared to indemnify the OP should they take your advice and then find themselves looking at the wrong end of a court order to include the costs of a failed defense and counterclaim, which at a fast track trial would not be cheap? No I thought not.

cabbage

Wonga, Payday Loans, Provident, Shopacheck etc all charge sky high interest on loans but saying its unfair isn't a defence as the other poster says, there is no interest rate caps under consumer credit law. It is possible to challenge as unfair but it will be difficult and possibly costly and they may lose and still have to pay loan off.

As far as whether you need to have the original copy of the agreement for it to be unenforceable is down to (as I understand) the date you took out the loan. Another poster has already asked the OP this question but it hasn't been answered yet.

dizzy1974

cabbage wrote: »

Wonga, Payday Loans, Provident, Shopacheck etc all charge sky high interest on loans but saying its unfair isn't a defence as the other poster says, there is no interest rate caps under consumer credit law. It is possible to challenge as unfair but it will be difficult and possibly costly and they may lose and still have to pay loan off.

As far as whether you need to have the original copy of the agreement for it to be unenforceable is down to (as I understand) the date you took out the loan. Another poster has already asked the OP this question but it hasn't been answered yet.

Thank you for your help and advice the loan date was Feb/07

I have also noticed that parts of the illegible agreement that are just about legible - do not match that of the data on the reconstituted copy. Total charge for credit appears to be different and the reconstituted copy also does not show the broker fee of £1500.

ILW

What is the amount and the term?

dizzy1974

ILW wrote: »

What is the amount and the term?

the amount borrowed was £15k, although on the recon copy it states £16,500
payment term is 180 month
total charge for credit it 31,232.53

Does that give you the info you asked? I have had to take this from the recon copy

thank you for your help.........