Welcome Finance Loan 2007

Kirstiebw

Hi

In not sure if thus us the right place to post this but here goes......

I got a loan from welcome finance in 2007 for £2000 to be paid off in 3 years. Within a year I couldn't afford the repayments so they said they would extend it for me. I was 18 at the time and didn't really understand exactly what i was signing I just needed the repayments to be lower. So they gave me a new loan which was the total amount of the previous loan and interest (minus what I had already paid) to be paid back over 10 years. It's only recently when they sent me a statement saying I still owe £2500 that I looked into it. Is it normal to have a second loan from them which includes interest from the previous loan then to pay interest on that as well?

[Deleted User]

Can you post up some precise figures - opening amount, rate, total interest to be paid, term, payments made and so on.

Kirstiebw

The initial contract 09/07/2007 - £2000 loan plus £978.62 for PPI over 36 months - £155.95 per month - 58.7% apr

I cancelled the PPI after a while to reduce the payment, but don't have a date for that and they can't tell me either as they can't find it on their system.

Up until 20/03/2008 I paid £848.70 in total and had interest capitalisation of £742.32 and fees of £100 due to missed payments.

Second loan - 20/03/2008 - £3198.32 (No PPI this time) - Over 72 months (not 10 years, my mistake) 13.66% apr - £63.99 per month

From 20/03/2008 until September 2010 I paid £1124.84 and had £777.16 interest capitalisation and fees of £97.82 due to missed payments

From September 2010 I was on a debt management plan and the interest was frozen and £10 paid per month since

PeacefulWaters

s it normal to have a second loan from them which includes interest from the previous loan then to pay interest on that as well?

Yes.

I'm impressed with your record keeping.

But the numbers provided suggest your current balance is moreorless accurate.

Kirstiebw

Ah ok thank you. It wasn't until I looked into it recently that I realised it was a new loan contract, not an extension (if that's even exists!) Ive never heard of payibg interest on the interest. That's what I get for getting a loan without knowing fully what I'm doing I guess. Lesson learnt

-taff

Make a complaint about missold PPI too, as they may well have cancelled it, but not refunded it, or taken the interest off the balance.

[Deleted User]

-taff wrote: »

Make a complaint about missold PPI too, as they may well have cancelled it, but not refunded it, or taken the interest off the balance.

What suggest that the PPI was mis-sold? Sounds like the OP bought something they couldn't afford and later cancelled it !