Loan duration extended without me knowing?????

Chezsopoor

Hi

I have a secured loan with welcome finance, took out in 2008, and I phoned the other day to increase my payments to pay it of faster when I noticed some indiscretions. My loan term is over 120 months/payment, anyway I was told that if I continue on with the agreed payment I would have 91 payment remaining. I have missed payments but have pretty much caught up and my arrears are minimal now. I did the math and worked out that I should have made 41 payments up to this point, leaving 79 payments. That's a full year of extra payment, now I have checked my agreement and can see nowhere that says that my agreement duration can be extended for any reason at all.

So I phone backed, and was told it would be passed over to complaints, even though its not really one more an account query, and some one would contact me in 48hrs. 2 days later no news, so i phoned them today (taking extra precautions to record calls now), and was told my complaint has been refused !!!!!!. Something to do with payment dates, missed payments and additional interest incurred due to default (£80 according to my last statement). When I pointed out this didn't answer my query as to why the amount of payment I have to make has been extended I was told to wait for the letter and phone back with any questions if I didn't understand.

Where do I stand legally here are they not in breach of contract or something.

Any help apreciated

Cheryl

ILW

Do you have any late or missed payments?

Emmzi

Chezsopoor wrote: »

. I have missed payments but have pretty much caught up and my arrears are minimal now. l

Why yes, ILW :-)

Catslovelycats

Chezsopoor wrote: »

Hi
and I and was told my complaint has been refused !!!!!!. Something to do with payment dates, missed payments and additional interest incurred due to default (£80 according to my last statement). l

Doesn't this explain it? You've incurred more costs so it's going to take you longer to pay it off if you keep the same payments??

chalkie99

Yes - Every time you miss a payment you will have incurred a charge and you have to pay the extra interest for the period you were behind.

If you have just made your usual monthly payments to "catch up" then you won't have paid the default charges or extra interest so your loan is bound to take a longer period to pay off.

Chezsopoor

No, I had already increased my payments to pay off the arrears, and the additional interest is 1.24 per month so this would only add an extra £97 over the term.

An extra year of payment would be £3000+, I should maybe of stated that in my original post

Tixy

I would ask them for a full transaction list since the account was opened, showing all charges & interest added - I think you'll find the interest & charges on your arrears actually work out as much more than £1.24 a month, with the typical APR welcome charges the cost of arrears racks up very quickly.

There have been a lot of similar threads and welcome's calculations do seem to generally tie back in their terms & conditions once all payments and missed payments are looked at and worked through on a spreadsheet.

poppasmurf_bewdley

Chezsopoor wrote: »

No, I had already increased my payments to pay off the arrears, and the additional interest is 1.24 per month so this would only add an extra £97 over the term.

An extra year of payment would be £3000+, I should maybe of stated that in my original post

Additional interest of 1.24% per month on your loan of however much is going to be much, much more than an extra £97 over the term of the loan.

chalkie99

Tixy wrote: »

I would ask them for a full transaction list since the account was opened, showing all charges & interest added

This might make it more interesting - from the BBC News today:

Some 1.4 million customers of doorstep lenders have been receiving letters informing them that their personal details have been lost.

The names, addresses and payment histories of 600,000 clients of Welcome Financial Services Limited and Shopacheck were lost, along with the names and addresses of another 800,000.

The Cattles Group, the parent company of both brands, has apologised.

Chezsopoor

poppasmurf_bewdley wrote: »

Additional interest of 1.24% per month on your loan of however much is going to be much, much more than an extra £97 over the term of the loan.

Sorry that should have been £1.24, according to my statements thats how much interest is added every month for default sums

though I will be asking for an SAR, as I looked at the original loan amount and it is higher than I actually got or is on my agreement

Apples2

£1.24 a month for default sums??

More like £1.24 per hour!!

£1.24 per month cannot be correct.