Welcome finance hell

IAN1

Cut a long story short I took out a secured welcome finance loan in 2008 for 15k (stupidest thing I have ever done). The original terms were 314.69 per month. I was making these payments initially until in 2010 it became too much to cope with, I was missing payments occurring charges but managed to catch up. Then in 2011 got into trouble again so arranged a reduced payment of £200 a month. Welcome are very good at forcing customers into agreements they cant afford. Apparently this reduced monthly payment was interest free and would be frozen until further notice. I checked my statement and capitalisation/interest is over 200 per month anyway!

I asked the for a quote for a settlement figure and they stated 37k in total! I have paid almost 14k to date. Obviously it is a high interest loan but that is ridiculous. I have been going through my contract and paperwork, and it seems it is a ll very misleading. They can never give a straight answer either, simple question of 'what is the interest rate of the loan? Until this day they cannot come up with a straight answer. One member of staff said 22.4% the other said 40.00%. Nonsense.

I have tried to renegotiate a lover monthly payment amount again as I have missed last 2 payments. They are no being quite unreasonable and threatening action. After stating in 2011 all interest and charges are frozen they have now stated there is more that £4600 arrears. Its seems as if they are plucking figures and interest rates out of the sky.

At the end of the day I took out the loan, yes but I honestly fell I was mislead as there is no way I would have taken this out if they had been upfront on exactly how much interest I would be paying. I cannot afford to be paying another 23k! I'm in a situation where I literally dont know what to do.

Any advice would be greatly welcome.

Thanks

Don

stephane_2

Did you get it in writing the fact that they would be freezing the interest...? If not then you haven't got a leg to stand on....they must have added some fees for each months you have missed or paid lower monthly amount...
What does your credit agreement says in terms of the interest? You must remember that surely? What was the term of the loan..?

stephane_2

You need to ask them for a Subject Access Request (SAR)....it will cost you £10 but they'll have to provide you with a full breakdown of your loan account....

Tubbss

£314 x number of months the agreement was over = ?
minus the £15000 loan and that is the amount of interest you would have paid if you paid on time, month in, month out. Simple.

fishybusiness

Come on, Welcome are not exactly high street bank material, saying this

Welcome are very good at forcing customers into agreements they cant afford

just doesn't cut.

Many years ago (20ish) I borrowed from Welcome Finance, I went to them because my own bank wouldn't lend me any more money. I wanted a new car.

They were good to me, and I got my £2k, boy oh boy did I pay for it.

I have some sympathy with your position as I have been there, but come on, you write it as though you are a victim of a terrible company. I'm pretty sure you will have 'seen' the agreement, I bet you didn't read it.

Unfortunately, Welcome don't seem to have much to lose in serving you a default notice as your loan is secured. Maybe legal advice is what you really need?

IAN1

fishybusiness wrote: »

Come on, Welcome are not exactly high street bank material, saying this



just doesn't cut.

Many years ago (20ish) I borrowed from Welcome Finance, I went to them because my own bank wouldn't lend me any more money. I wanted a new car.

They were good to me, and I got my £2k, boy oh boy did I pay for it.

I have some sympathy with your position as I have been there, but come on, you write it as though you are a victim of a terrible company. I'm pretty sure you will have 'seen' the agreement, I bet you didn't read it.

Unfortunately, Welcome don't seem to have much to lose in serving you a default notice as your loan is secured. Maybe legal advice is what you really need?[/QUOTE

You are right, the individual has the responsibility to take more care when signing financial documents. I have to face up to the consequences and deal with it some-way.

Apples2

This is the problem when people only bother about the repayment total when it has to be repaid.

When applying nobody gives a hoot, cash cash cash, spend spend spend.

Hindsight is a truly wonderful thing.

IAN1

Apples2 wrote: »

This is the problem when people only bother about the repayment total when it has to be repaid.

When applying nobody gives a hoot, cash cash cash, spend spend spend.

Hindsight is a truly wonderful thing.

?I was in a situation where I needed the money, I obviously made a bad decision. Spend, Spend, Spend?? Far from it otherwise I wouldn't haver needed a loan. I'm well aware that loan would have had interest applied. Obviously Welcome charge high rates and I should have been more aware. 23k interest on a 15k is extortionate. If the contract suggest otherwise I may have a leg to stand on if not I don't.

ILW

IAN1 wrote: »

?I was in a situation where I needed the money, I obviously made a bad decision. Spend, Spend, Spend?? Far from it otherwise I wouldn't haver needed a loan. I'm well aware that loan would have had interest applied. Obviously Welcome charge high rates and I should have been more aware. 23k interest on a 15k is extortionate. If the contract suggest otherwise I may have a leg to stand on if not I don't.[/COLOR]

What was the original term?

fozmcfc

Apples2 wrote: »

This is the problem when people only bother about the repayment total when it has to be repaid.

When applying nobody gives a hoot, cash cash cash, spend spend spend.

Hindsight is a truly wonderful thing.

Sadly this is true, but even if many were told you do realise this £15k loan will mean you will pay back £42k over 10 years, most would still sign.

Seems like most of these types of loans are no longer available to people or certainly not advertised on TV regularly, like in the past.

The repayment shown on the old Picture/First Plus were ridiculous.

It is still very difficult to have much sympathy for people who take these loans out, to cover non essentials like Holidays, expensive cars and weddings.

IAN1

ILW wrote: »

What was the original term?

amount borrowed. £15000.00, 120 payments of £314.69 over 10 years.
Total including interest= £37762.80