Trapped By Welcome Finance!! Help

dj9928

I got my statements through today from Welcome finance, I took out a loan of £1500 which worked out at £2100 with interest, that was back in 03, it was due to finish in 05 yet I still owe £1201.56 and heres why.

20.00 credit

Interest Postin

22.50

131.54 credit

Interest Posting 45.65

You get the idea, is there anything I can do, I am getting absolutly nowhere

oscar52

dj9928 wrote:

I got my statements through today from Welcome finance, I took out a loan of £1500 which worked out at £2100 with interest, that was back in 03, it was due to finish in 05 yet I still owe £1201.56 and heres why.

20.00 credit

Interest Postin

22.50

131.54 credit

Interest Posting 45.65

You get the idea, is there anything I can do, I am getting absolutly nowhere

Only thing I can think of is a 0% Credit card to transfer to. Said company are nothing short of cowboys IMO

dj9928

oscar52 wrote:

Only thing I can think of is a 0% Credit card to transfer to. Said company are nothing short of cowboys IMO

If I could I wouldn't of went to them in the first place.

mjdh1957

I'm confused - have you missed a lot of payments and so got behind? How come it wasn't paid off in 2005?

dj9928

mjdh1957 wrote:

I'm confused - have you missed a lot of payments and so got behind? How come it wasn't paid off in 2005?

I was off work sick for about 6 months and the reduced the payment, however what they actually did was take out another loan, but still it shouldn't be like this

CLAPTON

what's the interest rate and how much are you paying each month

mjdh1957

I see - that's a shame!

Can you start overpaying to get rid of it?

Or get an interest-free card now and transfer it across?

Might be worth having a talk with the CAB about your rights as regards them starting a new loan. Did you agree to this?

dj9928

Don't know what the interest rate is but just looking at this statement, if I pay £40 the interest is £22.55 so about 52% or so

mjdh1957

The interest depends on how much you owe, not how much you pay.

If you still owe 1200, then 22.55 interest is 22.55/1200 * 100 so about 1.88% per month. I don't know how to turn that into an annual rate... is it just 1.88 * 12? That would be 22.56%.

oscar52

mjdh1957 wrote:

The interest depends on how much you owe, not how much you pay.

If you still owe 1200, then 22.55 interest is 22.55/1200 * 100 so about 1.88% per month. I don't know how to turn that into an annual rate... is it just 1.88 * 12? That would be 22.56%.

thats a REALLY low rate for welcome (competitive even) - I knew someone who had a rate of 66.67% - and that was stated in the contract.

Xbigman

The interest isn't how much of the payment is taken, its how much of the loan it is. So its 22.50 per month of 1200. I haven't worked it out but it looks like 29.9% APR to me.

Welcome are very good at restructuring loans so that they make a bigger profit when people get in trouble. They are also very good at not sending new agreements or regular statements.

You can write and ask for the original signed credit agreement and check out what it says about penalties, but thats clutching at straws. Ultimately you need to pay it and the way to do it is to overpay as much as possible each month, assuming they let you do it. If they don't you should ask them when the current loan will end. I suspect another 18 - 20 months.
Regards



X