Welcome Finance - Help needed urgently

[Frenchbulldog]

Hi - I have found out, just before Christmas, that my son has taken a loan with Welcome Finance. He took the loan out back in February 2007 to cover car repairs. Due to his hours being cut at work, in the current climate, he is finding it extremely hard to make the payments and has fallen short. This is making him ill so I agreed to help.

He has given me copies of the orginal agreement and I'm, quite frankly, sickened by the terms of this loan. The insurances amount to £1243.29 (including IPT) but the additional interest on these insurances is £1042.69! The total for the insurances alone payable over the 3 years is £2285.97 which is more than the amount of the orginal cash advance of £2000! Is this legal? He says that when he took the loan, it was implied that if he didn't take these insurances, he would probably not get the loan.

The APR on the loan is a stagering 58.51% The total payable is £6100.92.

Is there anything at all I can do? I just don't know where to start.

Any advice would be gratefully received.

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[dx100uk]

god thats absolutely disgusting.......

they should be stopped from trading.

i would write a letter tomorrow cancelling the PPI & start a claim of mis-selling against them on the facts you have said here.

that should get the balance down or even negate it totally with what he has already paid.

have a good read in the PPI section, that will elp you too.

dx

[Frenchbulldog]

Thanks for the advice - Ill get reading and keep you informed!