Welcome Finance

[hayley]

Hi all

 

After reading all the terrible stories about Welcome Finance on here i had a look at my credit agreement but cant get my head around all the figures not too good at maths. I was wondering if someone could have a look over them for me please.

 

I bought a BMW for £7000, but put a £2000 deposit down so had £5000 on HP, I also purchased shortfall extra insurance which was £295. This is what the agreement says:

 

Amount of Credit for the goods £5000.00 (A)

Amount of credit for the insurances £295.00 (B)

Total amount of credit £5295.00 ©

 

Total amount payable for the goods (A + R + V) £10,619.52 (D)

Total amount payable for the insurances (N + W) £483.84 (E)

Total amount payable (D + E) £11,102.38 (F)

 

Cash price for goods £7000.00 (M)

Total cash price for insurances £295.00(N)

Total Cash Price £7295.00 (0)

 

Deposit cash £2000.00 (P)

Deposit P/X £0.00 (Q)

Total Deposit (P + Q) £2000.00 ®

 

Acceptance fee £195.00 (S)

Finance Charges for Goods £3324.52 (T)

Option fee £100.00 (U)

 

Charge for credit for goods (S + T + U) £3619.52 (V)

Charge for credit for insurances £188.84 (W)

Total Charge for credit (V + W) £3808.36 (X)

Rate of interest on credit per annum 16%

 

Duration of agreement 48 months payable by monthly payments of £187.57 APR 33.6%

 

Thanks in advance:)

 

Hayley

[postggj]

hear we go again

another welcome satisfied customer

may i ask when you took out the agreement

can you also post the agreement minus personel details using photo bucket

interesting as they are still adding acceptance fees

need to see agreement

[hayley]

Hi postggi

 

We took out the agreement in September 2006, how do i show a copy of the agreement?

 

Hayley

[postggj]

hi

scan the agreement and deleate personel details

log into photobucket, free, and upload agreement

then paste onto thread

[hayley]

Here you go!!!

[/img]

[postggj]

pt,stephen, or curlyben wil be around shortly to have a look

consumer credit act has now changed as you are not given now the protection of the cca 1974, as this is a recent agreement after the change

to give you an idea of what welcome are like have a look at my thread

 

must say welcome seem to be learning now on there agreements

[hayley]

pt,stephen, or curlyben wil be around shortly to have a look

consumer credit act has now changed as you are not given now the protection of the cca 1974, as this is a recent agreement after the change

to give you an idea of what welcome are like have a look at my thread

 

must say welcome seem to be learning now on there agreements

 

Ok thanks, i have read through your post thats what made me wonder.

 

Good luck with it:)

[postggj]

as my agreement is under the cca 1974

i am not savy on the new cca

like i said some one will be around soon who is

 

dont want to give inacurate info

 

mind you your agreement does state regulated under the cca 1974

[postggj]

if it is confirmed cca 1974

this opens up a whole new ball game

[postggj]

was this agreement taken out before march 30 2006

 

sorry

i see the agreement was sep 2006

pity

i will hand over to someone with info on new cca

[hayley]

was this agreement taken out before march 30 2006

 

sorry

i see the agreement was sep 2006

pity

i will hand over to someone with info on new cca

 

 

I was wrong about the date apparantly it is brought into effect in stages there's still hope lol

[postggj]

ive contacted pt

he is the one with the answers

he will be along soon

[pt2537]

Hi,

 

this agreement is regulated by the Consumer Credit Act 1974

[postggj]

thanks pt

great as usual

[hayley]

thanks pt

great as usual

 

What does this mean? i also had a loan with Welcome in 2005 which is now settled should i post that agreement on here too because i had insurances with that also?

[postggj]

do you have any problems with your outstanding agreement

or are you just after return of charges ppi etc

[hayley]

No dont have any problems at the moment just was curious to see if my agreement was all correct, i just wanted to see if the workings out were correct really because i keep thinking that they have charged me interest on £7000 not £5000 because it's so confusing (well for me anyway lol).

[postggj]

with my claim against welcome,

one of the things they do is front load insurances, acceptance fee, ppi etc, before calculating interest

this is unlawful, works like a mortage

if you want to go down this route you could get a sizable rebate.

be under no illusion, welcome will fight all the way

think about it first.

this is being decided in my case in court on the 5 feb

when i suceed , this will be a great lever to throw at welcome

[ReasonableRon]

You can easily work out the if interest charge is correct by doing the following.

 

Annual interest rate = 16%

Term of agreement = 4 years

Therefore total interest charge = 16% x 4 = 64% (or 0.64)

 

Total amount of credit = £5000 + £195 fee = £5195 x 0.64 = £3324.16 (which I know is 36p out but that is likely to be the roundings used in their software)

As for the £295 shortfall insurance, you can calculate this the same way and get to £188.80 (4p adrift from their figure).

 

You are not paying interest on the Option Fee because this will be payable at the end of the agreement and not the beginning, therefore you are not 'borrowing' it.

 

Hope that helps.

 

 

with my claim against welcome,

one of the things they do is front load insurances, acceptance fee, ppi etc, before calculating interest

this is unlawful, works like a mortage

Could you expand on this at all - i.e. what do you mean by 'front load'?

[postggj]

ime afraid i am not up on figures and extras

in my case acceptance fee was added before calculating interest

this is unlawful, ref wilson v fct

along with many more transgressions

ime sure some one will be along to tell you the verdict in your case ref acceptance fees etc

like i said, welcome seem to be getting there act togeather with there agreements

[hayley]

Thank you everyone for all the help and advice, postggi i wish you all the luck with your case and will be subscribing to your thread.

 

Thanks again!!!