Welcome - does this add up???

[aardvark1970]

Hi

I took a secured loan out in late 07 with Welcome when I was in a very bad place (fiancee had just left me in half done up house that I therefore couldn't sell).

 

House now completed (took along time, alot of friends help and much fudging on my part).

 

Now want to move and want to settle Welcome loan with equity. OMG no chance looking at the advice on here . Feel ill with worry. Realise I was stupid to take this out but as I say i was in a bad place and really not thinking straight.

 

I am thick when it comes to maths, could anyone please advise if this sounds correct i.e. does it all add up?

Cash Advance: £16000.00

Acceptance Fee: £235.00

Broker Fee: £800.00

Interest Charge: £42899.89 (gulp)

APR: 24.60% (double gulp)

Monthly payment: £327.22

Duration of loan: 180 months

 

Have tried the rule of 78 calculator (and subsequently avoided the knife drawer)...but cannot find a calc for 2007 loans.

 

Anyone know roughly what they are likely to ask for in settlement?

 

As going to send them a cca followed by a sar as i seem to strongly recall that I explained that I was planning to move and was advised that there was no early payment penalty...yeah right...presumably this coversation should appear in the sar?

 

I can't eat, I can't sleep and I feel very ill with worry, I stupidly thought the settlement figure would be the closing balance on the statement. If they make me pay more I cannot move and would owe the estate agents and solicitors alot of money I do not have.

 

All help gratefully received!

[dx100uk]

strewth mate

they saw you coming.

 

well there are £1000 worth of fee's there you were fleeced of that can get back for a start!.

 

dx

[aardvark1970]

Cheers dx

 

Am just hoping that in their current state of affairs they will accept a lower resettlement, i.e. the quarter figure which I could just manage...

 

aardvark

[bobbyh99]

I would say that the calculation for early settlement for 2007 loans is slightly better for the consumer than the Rule of 78.

 

Can you say exactly how many payments you have made and what were the payments?

 

Also, is there any arrears?

 

The interest charge figures quoted above is for the £16000. I presume the broker fee and acceptance fee were added to the loan, if so then they charge interest on them also!!

[aardvark1970]

Have made 21 payments of £327.22, no arrears.

 

They have the interest charge as separate figures from the acceptance and broker fees then the total charge for credit as £42,899.89 (sorry made a mistake in my initial post).

 

The quarter term repayment is £15,622.92 but I'm 2 years off paying a quarter term. The statement they sent last Sept was approx. £16,800 which is what I had stupidly budgeted on.

 

One good thing - my appetite has completely gone so I may lose a few pounds in weight too!

[bobbyh99]

Rule of 78 is approximately £20k, I would guess that the settlement is less than this for 2007 loans.

 

Why don't you write to them and ask them for a settlement figure and more importantly also ask for the calculation how they arrive at the settlement figure?

 

You can then double check this amount with either the FSA or OFT I'm not sure which!

BobbyH

[aardvark1970]

Cheer BobbyH

Yep I will do exactly that, recorded delivery to address on here, with no signature of course!

[The wife]

forget recorded go special delivery, I have lost letters thanks to recorded delivery..and postal orders with the letters....grrrrr

 

good luck aardvark

[aardvark1970]

Luckily I couldn't get out of work at lunchtime today so am sorting this tomorrow so will heed you advice

 

Will update once I've heard...

[Hampshiregirl]

Hi Aardvaark1970

 

I had a loan from 2004 from Welcome.

It was a £20k loan with 6k tacked on in ppi and mortgage indemnity.

 

I had no choice but to sell because of my daft mortgage.

On the day before the exchange they told me they wanted £31,500 (or more can't quite remember was may 2008.)

 

They agreed the move on the balance of what was left in the house for tehm to take £28k and want to make a new loan on the difference

The paperwork i have since from them states a £22k interest reversal and they want £8192 settlement, though the local branch have come down to £2950. Still debating what to do.

 

The paperwork from head office states

 

The amont of rebate has been calculated having regard to the consumer credit (early settlements) regulations 2004, so it might be worth finding out what that is.

And regulation 3 of the consumer credit (settlement information )regulations 1983.

 

Do know whether this helps, but they may well take the view that it is better to get the bulk of their money back now, and turn the rest into unsecured loan in the current climate...

 

on the other hand, this is welcome finance we are talking about....

 

Hope this helps, good luck.