Horrendous Settlement Figure off Welcome

Zeusie

Silvafox wrote: »

Trouble is our loan was taken out November 2004.... I assume that means the Rule of 78 can still apply.

Yes, but as from 31 May 2007, Rule 78 will no longer apply for pre 31 May 2005 loans. (under 25k and less than ten years). (I hope.)

It might be worth looking into this. If you wait 8 weeks before redeeming the loan, rule 78 may not apply to your loan and the penalty interest might be less.

I have a thread on this and Martin indicated that he was going to have a look at it and hopefully provide some info.

http://forums.moneysavingexpert.com/showthread.html?t=405617

Silvafox

Zeusie wrote: »

Yes, but as from 31 May 2007, Rule 78 will no longer apply for pre 31 May 2005 loans. (under 25k and less than ten years). (I hope.)

It might be worth looking into this. If you wait 8 weeks before redeeming the loan, rule 78 may not apply to your loan and the penalty interest might be less.

I have a thread on this and Martin indicated that he was going to have a look at it and hopefully provide some info.

http://forums.moneysavingexpert.com/showthread.html?t=405617

Hmmmm interesting. I'm not sure what to do now?

Although I've asked for statements and a settlement figure now, I wouldn't actually be paying off the loan until about 18th June anyway. Wonder if the settlement figure will alter after 31st May then? Would a solicitor or accountant looking at my original agremeent be able to tell this?

I really want to ask Welcome straight out but I'm sure they'll deny it will change anyway and probably will be completely unhelpful as lets face it - they're best just not saying whether I'd be better off or not?!

I'm now very interested to find out for sure on this possible alteration to some people loans.

Thanks for posting that thread.

ilovegreatdanes

we had to bring in the trading standards when we dealt with welcome.couldnt get a straight answer and kept being passed from one to another.would def involve someone likew trading standards or similar big organization.welcome hate bad publicity.best of luck.

ladypenelope_3

hi, i am in the same fix - took out loan, with welcome finance, for £15k in september and like you remortgaging and I have to pay £17 back.....
my other loan of 2yrs with NORTON for £40K has £46K to pay back!!!!! i am going to look into rule 78
good luck!!!

Silvafox wrote: »

Hi,

I'm currently remortgaging and I have a secured loan from Welcome Finace that will obviously need to be paid off as it is secured to the property. Got a settlement figure and its frightening compared to what we borrowed.

Have spoken to someone at CCCS and they've told me take the original agreement down to the CAB. Just wondered what the knowledgable people on this site made of the situation and whether I stand any chance at all of lowering the figure?

Here are the figures:

Loan taken out for £15k in November 2004

Secured via a Unilatteral Notice added to the land registry (which means they didn't need to get permission off my mortgage lender)

Taken over 10 years

Unsure of APR until I dig paperwork out, but the monthly payment is £426 per month

To date we haven't missed any payments at all any months that we have struggled, we still paid off the interest itself which was £318 per month.

In total up to this month we've paid around £10-£11k back.

Settlement is over £23k......

So if we pay the settlement then we've paid approximately £34k back for a £15k loan in just over two years.....

I've heard things in the press about huge amounts being paid back on loans like this. I'm not disputing the fact we took the loan out etc and am not trying to get out of paying, obviously, its just that £23k seems extremely unfair in comparison to what we borrowed.

I would be willing to offer £15k, equiavalent to the original amount, as full and final, which means they still would of made over £10k in just two years in interest.

Any advice? Is the CAB the best option?

Any use in calling Welcome and offering less as full and final?

Thanks.