Welscum Finance Secured Loan Query

Sulley285

I hope someone could give me some advice, I took out a secured loan in June 2007 for £15,985 (it coincided with purchasing my first flat, and was used to clear any other loans and to install a kitchen etc.)

I was doing a PPI query with Welscum and asked for a full statement, which I received today. (I've not got any PPI on the loan )

I've just sat and read through the statement, and found over £700 worth of charges for £10 for letters or £25 for phone calls, on top of this is CAPITALISATION for the same amounts each time they charge me ten or twenty five quid!

My main problem is I've worked out that so far I've paid nearly £12,226.25

On the statement it says that the Annual Interest Rate is 22.2%, then say the rate is 22.2% from 6 Nov 2007 to 18 Sep 2010, and it then drops to 18% from 19 Sep 2010 til 3 May 2011.

Easch time I've made a payment, a few days later there is a CAPITALISATION charge of around £290. Almost wiping out the £350 per month I'm paying.

On the statement the CAPITALISATION is described as "WHERE CAPITALSATION IS SHOWN ONCE, IT IS THE APPLICATION OF THE MONTHLY INTEREST TO THE ACCOUNT, BEFORE 1ST MARCH 2008 THIS APPEARED ON THE STATEMENT WITH THE DESCRIPTION 'INTEREST'"

So finally to my questions

Can I reclaim my unfair charges? I peronally think they are taking the rise with charging 'interest' on charging me £25 for a phone call, £50 for phoning me to get a payment, really!!

Also the way they are working the interest out seems a bit odd.

Naturally I understand that interest is applied to what I owe, but they seem to be charging a bloody fortune in interest. The way I reckon, I'm being charged over 3k per year in interest! Surely that's not right. Or am I being totally stupid?

I'm meant to be paying £307 pm, but due to missing a few payments I'm paying £350pm to clear the arrears.

Thanks for reading, sorry it's so long.

[Deleted User]

3k interest would be about right on tbe amount you've borrowed. What calculations did you come up with to suggest it's wrong?

With regards to the additional charges being added, see if you have the option of paying them up fron so they don;t get added to the loan. But if you're not paying them off as they come up, it's reasonable they'll add interest as time goes by.

~Brock~

I bet you didn't call them 'Welscum' when you wanted to borrow the money in the first place.....;)

Apples2

Sulley285 wrote: »

I'm meant to be paying £307 pm, but due to missing a few payments I'm paying £350pm to clear the arrears.

There's the crux of the matter right there.

If you miss a payment of £307, the following month you should make a payment of £614 plus the added interest and penalties you incurred for the missed payment.

As you are only repaying an additional £43 a Month, you will barely be touching the additional fees you are incurring.

Already your orginal terms (Total amount repayable) is worthless, you are going to repay a whole lot more as each and every month you are playing catchup.
All you are doing is nibbling at the debt in tiny chunks due to the fees piling up.

Not many will defend Welcome but you can sympathise when they lent to people when nobody else would, taking huge risks, only to find later those people they saved from financial meltdown in the past, now fail to repay their debt in the way they guaranteed.
All of a sudden they are no longer saviours, but become scum for trying to retrieve the money they lent.

You agreed to the terms of the loan no doubt agreeing to repay a shed load of your own money for them to help you out.
If you had stuck to your obligation in the agreement, that is exactly what you would have repaid.

Apples2

Sulley285 wrote: »

Well strangely enough, I've mised one payment to them, because I changed banks.

Sulley285 wrote: »

I'm meant to be paying £307 pm, but due to missing a few payments I'm paying £350pm to clear the arrears.
.

Eh??...........
If you missed one payment due to changing banks, surely you made that payment as soon as the bank accounts were sorted (me thinks someone is not giving up the truth).