Welcome Finance

welcomeha

:(I wonder if some one could help, I have never done a forum before, however I am really having problems with Welcome Finance. In December 2008 I took a loan out for £20k over 180months each month I have been paying £380. I missed 3 payments from 2008 which means I actually owe £21,800 more than what I took out. They are charging £400 per month Capitalisation and am just not getting out the bit.

I have paid back £11,067.62 since 2008 and they have took £10,779.49 capitialisation. I have wrote to them today to see if this is PPI as £400 per month interest was not stated on agreement. I have been to a Lawyer today to say this is illegal but he advised to write to Financial Obusdman. No-where on agreement states this, an even total amount is wrong just want to keep my house as I have young kids, I dont know what to do. Any advise would be great

Tixy

Hi

Is this loan secured on your house?
The problem with missing payments is that welcome will have been charging you for being in arrears plus additional interest because of the missed payment. And because welcome's APR is so high even missing a few payments will lead to high extra costs and end up costing you a lot more in the long run.

it looks like the APR on your original agreement was about 22% from the figures you have given. What APR is on the agreement?

The £400 per month is probably approx £360 of 'normal interest' that you would have paid if you hadn't missed the payments (obviously this gradually reduces as the loan is repaid), and the rest being charges for being in arrears and interst on the arrears.

welcomeha

Hiya

Thanks for getting back to me, the interest on agreement is 24.23% APR its now on statements as 21.60%, Yes its secured on house. Just feel Im never going to pay this off

Tixy

Are you in a position to either increase the monthly amount you pay (otherwise as you say it won't ever get paid off as the balance is increasing each month) or to pay off a lump sum to clear the old arrears/missed payments?

welcomeha

I was made redundant April so I cant I have just reduced last months to £300 which is going to be worse for me. I really am in a bad situation, I think I will have to put my house for sale and move into rented accomadation, was just trying everything before I did it.

CHR15

As described above, the Total Amount on your agreement is worthless now. It became worthless the day you fell into arrears.
By falling further into arrears, your options have been pretty much eliminated.

If you were made redundant in April, Why isn't the PPI paying out to cover your payments?
Avenue for mis-selling there so maybe something to come back.

I'm not clear why a Solicitor has said anything is illegal though. It all sounds fairly standard.

Do you have enough Equity in your house to clear this debt?

It's a big decision but you are talking about considerable sums, certainly way in excess of any other borrowing avenues open to you.

If you can, bite the bullet and get shot of it, this will be the quickest way to a stress free life. Anything else just comes with more stress.

MSE is littered with posts where people have tried to fight this, for years in many cases.

welcomeha

I know thanks thats exactly what I thought, I just make it I think if I put my house up for sale will have to look into it and how much it would cost from fees. Thanks I have learned from this and will read small print from now on.

welcomeha

Forgot to say I never took PPI out on loan but after reading some experiences people have had with welcome they said Capitalisation was PPI have wriiten to welcome today to ask what this is made up of and to see if PPI is included.

amersall

Do you have the agreement? this will show if ppi is on there, if it is not,then Welcome have been good giving a secured loan without the expensive ppi.
The commission on the sale of these was huge.

Tubbss

capitalisation is monthly interest

welcomeha

thanks everyone but after looking into it and getting advise Im going to sell my house cant deal with the stress of this anymore NEVER take a welcome loan....... never thought for 1 minute the interest was £400PM