Question about welcome

pops

Hi

I am looking to settle a loan i had from welcome, it was for £3000 and i took it out around april 2007. I pay £146 a month. I have already sent them a letter requesting a settlement figure, but they say this may take up to a week. What i wanted to know is, is their interest front loaded, ie will i have to pay back to full amount of the loan, or only the amount of the loan plus charges. I do not have the original agreement to refer back to and will prob take a another month for them to get this info to me.

Many thanks in advance

CLAPTON

depends what you mean by front loaded.

their loans, like mortgages, CCs, OD, charge more interest the larger the debt.
At the beginning of the loan you owe the full amount and so most of your monthly repayment goes to paying interest and only a little to reducing the debt. Over time the debt falls and more and more of your monthly repayment goes towards repaying the capital and less to the interest.

you dont say what the APR is on the loan but it's likely that you have only paid a small amount of the capital off so the settlement amount will be the capital remaining plus two months interest.

fightthemback

Hey pops,

the first thing you need to is request a copy of your original agreement. Welcome cannot be trusted to play with a straight bat so you need to know exactly what you agreed to.

Also if you took out any form of PPI you may owe more than you think you do. If you borrowed 3k there may be several hundred if not thousand pounds to be added for PPI.

Get your paperwork, a copy will cost you £1 from Welcome, go through it with a toothcomb and do the same with any settlement figures.

There are plenty of good guys out there who will check if it is kosher.

Good Luck.