Welcome Secured Loan APR% Query

ashley.mason.1982

Hi All,

I have seen about a dozen references to Welcome... none seem to answer my query.

I have a secured loan with Welcome, started in Jan 2008. We (My Wife and I) borrowed £8000 to pay for our wedding in Barbados.

I need somebody to confirm if the loan may have been mis-sold due to me finding the APR% indicated being 2.5% LESS than the calculators show as the actual cost of the loan. I was shopping around for a loan at the time, and we had offers on the same loan from other companies that were within that margin, and i'm worried we could have ended up paying more through this inaccurate APR% than we needed to.

We had to go with Welcome as mainstream lenders wanted to see both of us in employment for a year.

Now, from the Agreement, which is what i've been using to put into all the APR% Calculator Tools i can find on the internet, i have the following information:

Total Amount of Credit: £9694.16
Amount of Credit for Cash Advance: £8000
Amount of Credit for Insurances: £1694.16

Amount of each Monthly Payment: £194.17
Number of Monthly Payments: 120
APR (variable): 23.20%

Total Charge for Credit (M+N+O): £13606.12
(M)Acceptance Fee: £235
(N)Broker Fee: £400
(O)Interest Charge: £12971.12
Rate of Interest per Annum: 21.00%

Now, every calculator tool I use, tells me that the ACTUAL APR% is more like 25.7%... does this mean that i have been sold a loan stating the APR is LOWER than the actual cost of borrowing, or am i missing something in my calculations?

Due to my circumstances changing through illness, we looked into all the credit agreements we have and spent a small fortune on Subject Access Requests, to be sure we are paying the right amount to the right people, and not being ripped off, and in this case, it feels like we could have chosen a cheaper alternative if they had told the truth about the APR?

In dispute and making no further payments until they can prove the working method they used to calculate the APR%.

TadleyBaggie

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dealer_wins

Cant annswer your question but my god paying interest of nigh on THIRTEEN THOUSAND POUNDS for a wedding. Are you crazy!!!

chalkie99

A ten year loan to pay for a wedding :eek:

*Shakes head in disbelief*

If you have stopped paying in protest at a perceived mistake then it will now cost you even more as you have trashed your credit rating and will be accumulating extra charges.

ashley.mason.1982

I have also just noticed a statement on the Agreement stating that i have NO right to cancel under the Consumer Credit Act 1974, the Timeshare Act 1992 or the Financial Services (Distance Selling) Regulations 2004...

I thought that every loan since 2007 had to say I had a 14 day cooling off period?

***This part is Answered***

ashley.mason.1982

dealer_wins wrote: »

Cant annswer your question but my god paying interest of nigh on THIRTEEN THOUSAND POUNDS for a wedding. Are you crazy!!!

We had just bought the house nearly a year before, so used a lot for furnishings, improvements, etc... but mainly the wedding yes, and she is worth it!

Cycrow

if you got the loan in 2008, i think you are already past the 14 day cooling off

ashley.mason.1982

chalkie99 wrote: »

A ten year loan to pay for a wedding :eek:

*Shakes head in disbelief*

If you have stopped paying in protest at a perceived mistake then it will now cost you even more as you have trashed your credit rating and will be accumulating extra charges.

The account is frozen, no extra charges and interest are being applied... They have tried sending it to a few debt collectors, but they just hand it back to Welcome when I explain... and anyway, judgement aside, has anybody got any useful information about the question i asked?

ashley.mason.1982

Cycrow wrote: »

if you got the loan in 2008, i think you are already past the 14 day cooling off

Indeed, but i just checked, as its a secured loan, there is no right to a cooling off period...

Apples2

ashley.mason.1982 wrote: »

APR (variable): 23.20%
.

With a variable APR, the figures are largely useless, moreover a simple guide.
You could end up repaying any amount in the world as the APR can be changed at a whim.

ashley.mason.1982

Apples2 wrote: »

With a variable APR, the figures are largely useless, moreover a simple guide.
You could end up repaying any amount in the world as the APR can be changed at a whim.

But on the agreement? if you use the online tools and calculate from the figures what the APR% should have been on the agreement?

AND

Digging deeper into the statement on the agreement of not having any cancellation rights, it seems they may be in for an unenforceable agreement battle, as even Regulated agreements need a cooling off period...