Prime credit/welcome finance

White2020

Hi we took out a secured loan with Welcome finance (13years ago) which is due to finish in 2 years time. I have rang and asked for a early settlement fee. Working out the payments it would come to just over £10,000. This is achievable. However they still want the interest that would have be added on for the two years So they say it’s £20,000 to settle it. 

It madness for years we have paid a ridiculously high interest rate on it, surely they can’t ask for interest on a loan that wouldn’t carry on for the 2 years?..
Surely now they can’t do this? Any help appreciated or anyone else been through this? 

White2020

It is now with a company called prime credit 

sourcrates

Hi,
First off, when you request settlement figures from lenders, you should do so in writing, that way you get all the facts and figures written down, for you to read, which would negate you having to pose this question at all.
Is your agreement covered by the consumer credit act ?
If it is, the most they can charge in interest is approx 1-2 months, you really need to read the terms and conditions of early settlement, on your credit agreement, and look at the actual figures on paper to determine if the settlement figure they have quoted, is fair and just, or not.

White2020

How would I find out if it is covered please as can’t see anything on the settlement letter they sent through?.. funnily enough they don’t shout about these things!... 

sourcrates

White2020 said:

How would I find out if it is covered please as can’t see anything on the settlement letter they sent through?.. funnily enough they don’t shout about these things!... 

Do you have a copy of your original credit agreement ?
If not you can make a request for one, however as welcome went bust, its unlikely this new company will be able to comply.
You can write back and ask for a breakdown of how they arrived at the figure they have quoted, that may be more useful.

White2020

I have tried speaking to them today but it’s like a brick wall... the settlement figure they have given me is a figure with 2 and a half years of interest attached to it .. as it’s more than if I continue to carry on paying my payments. We talking thousands of difference! When I call you I just get someone reading what seems like standard script to me. I have never known a loan company when you ask for a settlement fee it’s more than the loan is itself? Which interest?? Surely you take the interest off that would be on it for the 2 and half years, work out what is left plus any early settlement charges and then that’s it? It’s madness? Can anyone help? Should i ask to speak to someone higher or just escalate it to the ombudsman.. the only problem there is I want to get his sorted asap as still having to pay monthly payments when all I want to do is settle of and pay it off. 

Clive_Woody

White2020 said:

I have tried speaking to them today but it’s like a brick wall... the settlement figure they have given me is a figure with 2 and a half years of interest attached to it .. as it’s more than if I continue to carry on paying my payments. We talking thousands of difference! When I call you I just get someone reading what seems like standard script to me. I have never known a loan company when you ask for a settlement fee it’s more than the loan is itself? Which interest?? Surely you take the interest off that would be on it for the 2 and half years, work out what is left plus any early settlement charges and then that’s it? It’s madness? Can anyone help? Should i ask to speak to someone higher or just escalate it to the ombudsman.. the only problem there is I want to get his sorted asap as still having to pay monthly payments when all I want to do is settle of and pay it off. 

As suggested already, you need to write to them to request a settlement figure. Stop phoning.

White2020

I have now asked for a full copy of all paperwork and payments.