Welcomes loan cca has scrambled my brain, please help

[alb10n]

Hi

 

I got a loan out with welcome finance (boo hiss) almost a year and a half ago and after reading through the other threads on welcome, and their shennanigans I decided to scrutinise my credit agreement. Which has led me to ask a few hopefully easily answered questions, as i am a little naive still when it comes to finance.

 

Firstly my loan was for £2500 over 36 months paying £131.51 with 59.39%APR. It says that the rate of interest is 55.55% and the interest charge is £2159.36.

 

My first problem iv found with this is i cant work out how the interest charge has been worked out from the £2500. Iv used loan calculators and they have varied from being spot on to being 1p less to being a few thousand off. So i decided to work it out manually and found that i worked it out to be almost one and a half thousand less than that quoted. Does anyone know the formula they use to work it out?

 

There are a few more issues but i dont want to write a stupidly large first post if it turns out im not using the right formulas. Any help will be greatly appreciated.

[havinastella]

could you post the agreement up, delete your details, but we'll need to see the figures.

 

Jogs

[alb10n]

Iv not got a scanner im afraid, is there anything you can do without seeing it? are there things i should be looking out for? Im aware of the issue with adding the acceptance fee to the total interest but i think thats not happened to me.

[havinastella]

you could try to lay all the figures out so we are able to understand them.

 

Loan amount, fees, repayment amounts, Apr, etc etc.

 

Jogs

[alb10n]

Ok cheers

 

Total amount of credit: £2500

Amount of credit for cash advance:£2500

Amount of credit (cash advance and settle loan):£2500

Duration of agreement months:36

Amount of each monthly payment:£131.51

Number of monthly payments:36

APR:59.39%

Total Charge for credit:£2234.36

Acceptance fee:£75

Interest charge:£2159.36

Rate of interest per annum:55.55%

 

Iv not got any PPI or any other type of insurance, and iv included anything which has a number in sorry if some of it is of no use.

[havinastella]

Just working it out quick the figures more or less add up. Unfortunately I'm not an expert, but hopefully somebody will look in later.

 

That APR looks almost illegal though

 

Jogs

[alb10n]

Cheers appreciate you looking at it. Il have to try and grab someone from the other thread. Thanks again

[andie_303]

I think it's correct sorry

[dadofholly]

Hi guys

 

Could someone look at my agreement and see if the figures stack up.

 

i used a simple calculation to test the charge for credit on the insurance, this was i took the the total cost of the insurance £1,798.06 and x it by 12% which is the stated rate of interest per annum - which gave me £215.76 i then x that by 4 years the lencth of the agreement and got £836.06 the same as they get. but when i use the same formula for the cost of the goods the figures dont stack up?

 

Is it me?

http://i638.photobucket.com/albums/uu110/dadofholly/img004-1.jpg

 

hope this link works

Edited March 20, 2009 by dadofholly
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