Trying to get rid of Welcome Finance

Thea

A relative of mine took out a loan from Welcome finance for £10,000 over 10 years.


In the first year they missed a payment. Welcome was informed of this before the payment was missed and agreed to let them spread the payment over 3 months.


However what they did not say was the interest would still be outstanding. Therefore the missed payment was caught up on and everything looked well. Its only come December 2013 when the last payment was due, Welcome sent a yearly statement stating another £3000 was owed due to interest accruing.


We contacted the ombudsman but they found in Welcomes favour basically stating my relative should have known better.


Now, in order to finish this loan once and for all, I've suggested them getting a personal loan with a more reputable company such as a bank over 2 years. Also overpaying as much and whenever possible.


Welcome sent a settlement figure for £3300. This includes a default interest of £25.


I think this would be a good plan. Any ideas/ suggestions?


P.S They now have a really good credit history, no defaults, ccj etc.

Tixy

How much are the monthly repyaments with welcome? and what APR?

If they can now get a mainstream loan at a reasonable APR then that would seem to make sense.

Another option might be a 0% credit card that allows money transfers/super balance transfers if they were able to get one and could repay in full over the promotional period.