Welcome Finance Secured

thomas126

Hi,

I am looking for some advice re an old Welcome Finance secured loan which we had which was then passed onto Prime Credit. We were young and naive when we took the secured loan out, but you live and learn!

The loan was taken out in September 2008 for an amount of £15,029. No PPI or anything attached. The total amount due to be repaid was £37,741.52 (I know!), payment of £239.20 over 180 months – APR 25.1%. We had paid a total of 127 months with 53 months remaining on settlement.

We moved out of our property in March of this year and settled the account with the sale of the property – total amount repaid to settle was £10,542.91. Included in this was an early repayment charge of £182.11!

I have the original credit agreement from 2008 and nowhere does it mention an early repayment charge – the only charges it shows is:

“If you exercise your right to settle this agreement early you might expect to pay, if you settle:

After a quarter of term has elapsed: £14,561.69
After half the term has elapsed: £12,848.68
After three quarters of the term has elapsed: £8,882.82

I’ve argued with Prime credit that the early repayment charge should not have been applied, however they are adamant they can apply this.

I could cry reading the figures. I have a copy of the original credit agreement if anyone wishes to see.

Would anyone be able to advise if I should be able to claim this back and if you’ve been in a similar situation?

Many Thanks

thomas126

I should note that we missed no payments what so ever during holding the secured loan and all payments were made on time and up to date

thomas126

Furthermore, at the time of settlement the total outstanding balance was £10,166.20!

MEM62

Your figures don't add up. 180 x £239.20 is £43,056 - not £37,741.52.

Either way I cannot imagine the desperation that must have driven you to such an arrangement. I hope that your circumstances are now much better Looking at the amount that you have paid overall, the £182 really does pale into insignificance. I appreciate the distress that looking at the numbers may cause and I suspect that, emotionally, the £182 is an issue that you don't want to let go of but perhaps you are better off just drawing a line and moving on. Look forward not back.

thomas126

Thanks for your reply. The £37,000 is on top of the £15,000 that was taken out! So in total it was £52,776 to be paid back in full term of 180 months. We had paid over £47,000 in total during term we had the including the settlement. £180 might not seem like a lot but it’s principle, it was displayed in the original credit agreement.

Much better position now thankfully. :j

thomas126

It wasn’t that was meant to say not it was

Exodi

thomas126 wrote: »

Thanks for your reply. The £37,000 is on top of the £15,000 that was taken out! So in total it was £52,776 to be paid back in full term of 180 months. We had paid over £47,000 in total during term we had the including the settlement. £180 might not seem like a lot but it’s principle, it was displayed in the original credit agreement.

Much better position now thankfully. :j

The numbers don't make any sense to me.

Your agreement is £239.20 x 180 = £43,056 total repayable.

Has the APR gone up?

thomas126

No the APR has not gone up.

180 x 293.20 = £52,776? I don’t know where you are getting the £47,000 from?

Caz3121

thomas126 wrote: »

Thanks for your reply. The £37,000 is on top of the £15,000 that was taken out! So in total it was £52,776 to be paid back in full term of 180 months. We had paid over £47,000 in total during term we had the including the settlement.

are you sure your payments were £239.20 and not £293.20?
£293.20 x 180 = £52,776

you say you paid over £47k
£239.20 x 127 + £10,542.91 = £40,921.31
£293.20 x 127 + £10,542.91 = £47,779.31

from your post 8 it appears the payment information in your first post was incorrect

Caz3121

thomas126 wrote: »

payment of £239.20 over 180 months

thomas126 wrote: »

180 x 293.20 = £52,776? I don’t know where you are getting the £47,000 from?

error in opening post

thomas126

Sorry that’s correct. It’s £293.20