Horrendous Settlement Figure off Welcome

red24

We are in a similiar position with Welcome Finance.
Loan secured for 20K in 2004, paying 378 per month.

Selling property and received settlement figure with breakdown, which is all very interesting if I could understand it, but we now owe 23K. If it had of ran the full term we would have paid 45K back
Problem we have is if we contest the amount it would delay the house sale. We obviously signed the contract at the beginning so can't really say we didn't know what the APR was, its customer services we have a huge problem with, currently in dispute with them. Yes they do charge for calls made, at a time when they know we are out, I've told them many times in writing. The last response as to why they do this was ' just thought we'd catch you at home. i know its been a while since your post Silvafox but I'd be interested to hear how you got on.
For anyone that wants to know the head office/complaints dept address, let me know.

chaosfoz666

Is the 'front loading' of the interest not illegal? If its not it should be!

homer_j_3

I think that you need to look at making the loan either voidable or unenforceable.

I will post my link to the information that I have provided on this on the loans forums.

I introduce my clients with issues similar to yours to a company that offer a free forensic audit of any loans/scenarios mentioned in the linked post and pass initial checks as potential cases which may be voidable and/or unenforceable.

This company is being looked at by Martin and has been promoted in Which magazine this month I believe.

http://forums.moneysavingexpert.com/showthread.html?t=930311

I highlight this fact for transparency and to show that there are now other options out there that CAB etc.

Silvafox

Thank you again for your post and highlighting the fact that there are other options available. I am now looking into it all and have already sent you a PM regarding this. When and if I get anywhere I will update this thread.

Silvafox

An old thread resurrected!

I had to pay all that they wanted a few years ago, so now I am looking at getting advice as to whether the amount I paid was considered unfair or not.

I will update as I find out anything.

Any constructive comments are welcome.

FOURCANDLES_2

This welcome finance company sounds awful .

Lip_Stick

My brother went for a loan to Welcome for new windows. He wanted to borrow just over £4k. If he'd taken the loan out he would have had to pay £18k. :eek:

If I remember rightly in the end they went to the AA for a loan and paid around £600 more than the amount they wished to borrow.

I thought the Government brought in a law a while back that made it illegal for these huge settlement figures, making it so figures were based on the time the loan had actually been taken for, and not the agreed amount of time at the start. :think:

Silvafox

Lip_Stick wrote: »

My brother went for a loan to Welcome for new windows. He wanted to borrow just over £4k. If he'd taken the loan out he would have had to pay £18k. :eek:

If I remember rightly in the end they went to the AA for a loan and paid around £600 more than the amount they wished to borrow.

I thought the Government brought in a law a while back that made it illegal for these huge settlement figures, making it so figures were based on the time the loan had actually been taken for, and not the agreed amount of time at the start. :think:

Yeh, there is a new law, but only on agreements that met certain criteria after a certain year. Unfortunately, mine fell before this rule was enforced.

Fribourg

Was in the same situation, and settled before the 15 year mark, I think was just after 3 years of taking the loan. At the time they told me I was forced to take the PPI, even having it secured on the property, this loan was paid in full on 2005, now I requested a SAR from that company, once I get all the paperwork back, I will fight to get all the PPI paid, and will see what else I can do. Is around 2K+ ppi paid, so that would be nice having that money back.

Silvafox

Fribourg wrote: »

Was in the same situation, and settled before the 15 year mark, I think was just after 3 years of taking the loan. At the time they told me I was forced to take the PPI, even having it secured on the property, this loan was paid in full on 2005, now I requested a SAR from that company, once I get all the paperwork back, I will fight to get all the PPI paid, and will see what else I can do. Is around 2K+ ppi paid, so that would be nice having that money back.

OK, that's interesting. My sister works within a solicitors office, so I'm just waiting on someones legal advice, based on the facts given above. When I find out anything, I'll update.