welcome finance RIP OFF???

si1306

I took a loan with welcome finance for £10000 with payments of £282 over ten years extortionate i know. After three years and £10152 later i asked for a settlement fee to pay off the outstanding balance and to my astonishment it was £13095.99p more than the origional loan even though i'd already paid £10152. Is this legal it seems extortionate.

swift_gti

I'm no expert but I think thats probably about right since a lot of what you paid back will be interest, and they usually add a few months interest onto the early settlement figure too.
I'm sure you'll get some hard facts on that from the guru's here

Phantom_Flan_Flinger

Were you paying PPI on the loan too?

Xeno

If you've made all your payments on-time for three years, there is almost certainly another lender with better rates who may fund you now. Even Welcome have different tier's of products. I assume thats a secured loan, also?

si1306

Phantom_Flan_Flinger wrote: »

Were you paying PPI on the loan too?

yes was missold it trying to get that back at the min though they reckon i only paid £600 on ppi and its my word against theirs

si1306

i dont want more money i just thought that the overall payment was gigantic they basically told me i was paying £200 interest a month

CLAPTON

you presumably got a loan of 10,000 and paid an extra 3,500 as PPI and then paid 25% APR???? or something similar?
if thats so then indeed you probably do owe something like 12-13k

If you can get a better loan (i.e. a lot lower APR ) then that may be worth doing.

si1306

CLAPTON wrote: »

you presumably got a loan of 10,000 and paid an extra 3,500 as PPI and then paid 25% APR???? or something similar?
if thats so then indeed you probably do owe something like 12-13k

If you can get a better loan (i.e. a lot lower APR ) then that may be worth doing.

I have paid the loan off in full i was just thinking the repay was gigantic as they told me i'd only ever paid £600 ppi altogether

iolanthe07

I took a loan with welcome finance for £10000 with payments of £282 over ten years

This doesn't make sense. I've just been offered a loan by Lloyds for £10,000 over 5 years at £195.44 a month. Surely there can't be so much difference?

Xeno

iolanthe07 wrote: »

I took a loan with welcome finance for £10000 with payments of £282 over ten years

This doesn't make sense. I've just been offered a loan by Lloyds for £10,000 over 5 years at £195.44 a month. Surely there can't be so much difference?

Yes, there is
Also, the PPI on 10k over 10 years would be huge, probably 4k, nothing like the £600 quoted.

si1306

Xeno wrote: »

Yes, there is
Also, the PPI on 10k over 10 years would be huge, probably 4k, nothing like the £600 quoted.

they have told me after a year the ppi was cancelled but i never cancelled it and the payments were never reduced also the final figure was huge??