Welcome finance settlement figure?

[robbo95]

Hi Peeps,

 

am a newy and don't know where to put this but I took out a loan last year (12 months ago) for 2500, I pay 123.00 p/m over 3 years and thought that I need rid of these clowns.

 

when i did the agreement they said something like 3.5%, but looking over the agreement its 47.5%

I called and asked for a settlement and they said i need to put in writing so ask what i would be looking at and he said he can't say so told 1 year in to a 3 year agreement, he said that would not have paid the intrest off.

 

Is this right, any advice for me, i dont have any PPI cover said no all added extra's

[tedmaul72]

Hi Peeps,

 

am a newy and don't know where to put this but I took out a loan last year (12 months ago) for 2500, I pay 123.00 p/m over 3 years and thought that I need rid of these clowns.

 

when i did the agreement they said something like 3.5%, but looking over the agreement its 47.5%

I called and asked for a settlement and they said i need to put in writing so ask what i would be looking at and he said he can't say so told 1 year in to a 3 year agreement, he said that would not have paid the intrest off.

 

Is this right, any advice for me, i dont have any PPI cover said no all added extra's

 

As I understand it, and without seeing your agreement, Welcome apply interest each month to the balance of the loan. 47.5% works out at 3.9% each month - 3.9% of your opening £2500 is £97 so most of your payments have been swallowed up with interest. So even though you've paid £1500, I would guess only something in the region of £300-£400 as came off the principal balance. The further into the loan you go, the less you pay in interest. A lot of people get a shock early on in their Welcome agreements as they realise the balance has not gone down as much as they thought it had.

 

They still have to give you a settlement figure and you still have to put it in writing. I've never had a settlement figure off them so could only speculate what it would be or how they would calculate it - balance plus interest, undoubtedly.

[robbo95]

As I understand it, and without seeing your agreement, Welcome apply interest each month to the balance of the loan. 47.5% works out at 3.9% each month - 3.9% of your opening £2500 is £97 so most of your payments have been swallowed up with interest. So even though you've paid £1500, I would guess only something in the region of £300-£400 as came off the principal balance. The further into the loan you go, the less you pay in interest. A lot of people get a shock early on in their Welcome agreements as they realise the balance has not gone down as much as they thought it had.

 

They still have to give you a settlement figure and you still have to put it in writing. I've never had a settlement figure off them so could only speculate what it would be or how they would calculate it - balance plus interest, undoubtedly.

 

 

Thanks mate, thats kinda rings true.

they use crafty tatics and numbers to draw you in.

I might bite the bullet and pay it off.

 

looking at the agreement they have charged me intrest on the acceptance fee as well the cheeky so and so's.

[HFwho?]

hi i had car through yes car credit but the loan for the car was with welcome finance. after reading a few posts i think iv been robbed. i was paying 230 a month on a peugeot 306 worth 5000 when i started the agreement. then 1 year from the end of the 4 year loan i was sitting at a junction when a car went into the side of me. the other car sped off never to be seen again. i was with tesco and got 1500 for it which took my loan balance to around 2000 that i still had to pay off over the last year. i was gutted no car and still paying for it. this was 4 years ago and i had the ppi and im sure i had shortfall insurance or something but was told i had to pay the loan off so i did. where would i stand with this now? could i claim anything? maybe sar them?

[brassed-off-2]

Yes HFwho?, sar and cca them, request all the necessary for insurances, ppi etc... asap, they will probably do their usuall delaying tactics, and miss things out, tailor the request to include everything you need!!

youll get more info to help if you read through the other threads ...sorry the car finance is not my thing.

 

b-o-2