Grr Welcome Finance. Help!!!

dj9928

In December 2003 I took out a loan with welcome finance for £1500 which worked out at £2100 or so with the interest, the loan was due to finish Dec 2005 but due to being made redundant etc I missed about 5 payments, anyway I signed up with payplan and they have just confirmed the balance £1330.36,

So I am assuming there is some serious charges applied, I mean at this rate I'll be paying this off the rest of my life.

I originall started paying £130 per month, I paid this for about 10 months, then got made redundant and missed 5 payments, they then restructerd my loan and I now pay £40 per month.

Is there anything I can do?? Can I get these charges back for a start, I mean I did notice a sign if there office saying £30 for a phone call of which I have had about 20 while I tried to dodge them when was unemployed

Xbigman

I assume you have just signed up with payplan and the original £40 arrangement was worked out directly. If not, please advise us.

Did you sign a new agreement or was this an ad hoc arrangement. Has it ever been revued?

It depends on exactly what has happened but I would guess they did not freeze interest and the interest was high. They have also added charges on left right and centre.
What you need to do is write to them (recorded delivery) asking for a breakdown of how the debt is currently made up and details of all charges that have been applied. As soon as you have that you can see what has happened and work out your responce. In the meantime, do you have the original signed agreement for the loan? If you do then check the terms and conditions for any charges they can apply.

Did you have PPI?
Regards



X

piggeh

You're entitled to know what the charges are for, so write requesting a list of these under the Data Protection Act. I think you need to send a statutory amount to cover their costs (it's either £10 or £2 I think). Then I would go over to the consumeractiongroup website and ask there about these maybe being unfair charges.

Xbigman

You can ask for a list of charges for free. They do sometimes respond. If they don't respond then you can request information under the data protection act but it costs £10. For those on DMP's £10 can be a lot. Just asking them first time around does take longer but you need to realise these people make snails look fast and this ain't getting resolved next week.

One possible outcome of your putting up a fight over charges is that they sell you on to a debt collector. If this happens then you should immediately dispute the amount of the debt and refuse to deal with the debt collector. And get some a4 envelopes. All the letters and recorded delivery receipts you will start piling up need to be kept in order .
Regards



X