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Need Advice Regard Expired Loan Please
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Hi Folks,
I have a bit of an issue with two loans which i could do with some advice on.
About seven years ago i went through a bit of a tough time with redundancy etc. Anyway it resulted in me losing my house and haveing a bad credit rating to go with. It has been a long process getting back up there but finally my credit rating is spotless and things are back to normal. However during the process of getting back up there i needed finance and at the time i reluctantly had to take out a personal and car loan (hire purchase) from Welcome Finance. I know their history and their reputation but this was years ago and i had no choice. I am a typical Welcome Finance victim.
The problem i now have is that Welcome have been hassling me the last few weeks telling me that my personal loan has now expired and that i still owe £1500 on it. They have then been saying that to solve this i could borrow another £200, pay off the £1500 and start a new loan over two years. I have said no to this as i don't need anymore money from them and i just want to continue as i am until the £1500 is cleared at the end of this year.
The reason this amount is still outstanding is, yes i did miss a few payments and as per usual they have added various charges on as well for things.
After continuos hassling i told them to put in a letter exactly what the want me to do and i received this letter yesterday.
The letter explains that my personal loan has expired and at the end of June will be passed onto their administration dept who will persue for the full amount of £1500. Also as the HP loan (£2000) is linked into this agreement this will also be passed to admin. They then go on to say that in order to resolve this and settle both accounts in full both agreements can be re-written into one new personal loan and giving me a a cheque for £200.
The details on my contract for the personal loan says that the estimated repayment period is 36 months, and these 36 months was up in October 2006.
The details on my contract for the hire purchase loan is for 36 months which finishes in October 2007.
Obviously i do not want to take out another loan for two years and would just like to continue as i am as both loans will be cleared by the end of this year.
Can anyone please help me to understand what my rights are and what options i have.
Any help will be gratefully received.
Thanks
Charllie
I have a bit of an issue with two loans which i could do with some advice on.
About seven years ago i went through a bit of a tough time with redundancy etc. Anyway it resulted in me losing my house and haveing a bad credit rating to go with. It has been a long process getting back up there but finally my credit rating is spotless and things are back to normal. However during the process of getting back up there i needed finance and at the time i reluctantly had to take out a personal and car loan (hire purchase) from Welcome Finance. I know their history and their reputation but this was years ago and i had no choice. I am a typical Welcome Finance victim.
The problem i now have is that Welcome have been hassling me the last few weeks telling me that my personal loan has now expired and that i still owe £1500 on it. They have then been saying that to solve this i could borrow another £200, pay off the £1500 and start a new loan over two years. I have said no to this as i don't need anymore money from them and i just want to continue as i am until the £1500 is cleared at the end of this year.
The reason this amount is still outstanding is, yes i did miss a few payments and as per usual they have added various charges on as well for things.
After continuos hassling i told them to put in a letter exactly what the want me to do and i received this letter yesterday.
The letter explains that my personal loan has expired and at the end of June will be passed onto their administration dept who will persue for the full amount of £1500. Also as the HP loan (£2000) is linked into this agreement this will also be passed to admin. They then go on to say that in order to resolve this and settle both accounts in full both agreements can be re-written into one new personal loan and giving me a a cheque for £200.
The details on my contract for the personal loan says that the estimated repayment period is 36 months, and these 36 months was up in October 2006.
The details on my contract for the hire purchase loan is for 36 months which finishes in October 2007.
Obviously i do not want to take out another loan for two years and would just like to continue as i am as both loans will be cleared by the end of this year.
Can anyone please help me to understand what my rights are and what options i have.
Any help will be gratefully received.
Thanks
Charllie
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