welcome finance ( i know i know - but i was desperate!!!)

[tia1985]

please can someone help me

 

 

I took out a loan with Welcome finance in Nov 2007 the total loan amount was for $5700. Plus acceptance fee at $195.00 and interest at "17%" which made interest of $3000?

 

Interest on this amount made the total amount to be repaid Total amount calculated at $8901.36.

 

The loan was for 36 months November 2007 – November 2010.

 

I have paid 247 each month for 23 months therefore paying $5681.

 

Below are some settlement figures I have been given – I think there is a problem with the " settlement figure computer!?

• November 23rd settlement figure $3124.40
  
• October settlement figure $3338.10
  

 

I've done a few calculations:

 

Total debt ( $8901.36) – Amount Paid So Far ( $5681) = $3220.36 ( amount remaining if paying for 36 months)

 

Then I moved on to calculate what the benefit of me paying 12 months early would be…….

 

Again some more calculations:

 

Amount remaining if paying for 36 months ($3220.36) – settlement figure ( $3124.40) = $95.96

 

This means for an early repayment "reduction" of $95.96.

 

I've been advised that the settlement figure = (Balance at the time – interest – acceptance fee)

 

Now if I were to work out the interest (3000) over the 3 years I would think that this would be 3000 divided by 3. Meaning that the interest I pay is roughly 1000 per year….

 

Therefore, I could only assume that If I were to pay 12 months earlier – the 1000 would be deducted??

 

Am I missing something?!!?

 

I checked my credit expert file too and it says on there that i owe 300 quid.... soemthing seems fishy

[tia1985]

forgot to ass that $ are actually striling but my keyboard does not have a pound sign...

[Dibbothe3rd]

I agree. the early settlement figure should be excluding any interest that is due over the remaining period. you should only have to pay the capital element of the loan.

 

The capital element works out at about £158.33 a month. therefore with 13 months remaining, that = approx £2058 to pay + the acceptance fee part as this is separate to the loan amount itself. so in total £2253

 

with 12 months remaining it works out at approx £1899 + £195 = £2094

 

The acceptance fee should already have been paid at the start of the loan and I also believe that they are not allowed to put interest on the acceptance fee but I do believe this is currently being contested.

 

Hope this helps.

[tia1985]

* forgot to add they are also charging me "£100 option to purchase".... i asked my account manager at welcome ... she says she doesnt know what that means.... im not sure if that comforts me or not!?

[postggj]

welcome loans work the same way as a mortage

 

everything is interest to begin with, capital gets paid off at the end

 

every thing is front loaded

 

all charges and insurance are paid up front in a block payment

 

welcome screw you for the max interest rate that way

 

i might have some good news for you as i feel you have been conned

 

this is a personal loan and not a car finance agreement

 

please confirm

[tia1985]

no its HP .... (ow ).........oops forgot to mention that... welcome actually called me back ( i know im picking my own jaw from the floor).... my account manager has proudly informed me that she noitced ive been charged for two letters in july at 20 quid each and she doesnt know what for......... me neither my payment history is spotless. so anywho she is raising it to the complience team.... is this a result?

[tia1985]

ps. thanks for your concern guys

[Dibbothe3rd]

its a start. the £100 option fee is the fee that is payable at the end of the HP, basically if you want to keep the car you have to pay £100.

 

Interest should not be charged on this amount I think!

[postggj]

dont get me going on welcome and ther phantom charges

 

two letters at twenty quid

times that by the apr

 

demand a rebate

 

have you had a statement from welcome

 

by law they have to send it out once a year

they tend to neglect this

now you see why

[tia1985]

confused - if i didnt want to keep the car why wud i be paying nearly 9k!?

[tia1985]

im actually trying not to vomit over reading my own words- 9k for a car- stupid stupid stupid tia

[postggj]

you are correct dibbo

 

 

can you post up the agreement tia

 

google photobucket and use the upload link for message boards

 

deleate personal info but leave in the figures

[Dibbothe3rd]

Thats HP agreement for you. basically you hire the car from them and pay a fee at the end to keep it.

 

during the term of the agreement you are not allowed to sell the car until the HP has been paid off and the option fee is paid.

 

The car is owned by Welcome until its all paid.

[tia1985]

i am working abroad at the moment ( makes the whole 9k on a car im not even driving seem worse). i come back every 12 weeks.... so i wont have access to the agreement unless they email it me .....i can have a go at asking

[tia1985]

okay im starting to understand it all a bit more now...

 

so basicly - long story short..... i should pay more attention to what i sign

[beyondhope]

Dont beat yourself up Tia if you look at my thread you posted on earlier if our agreement wasnt duff it would have been 12k for a car or 15k if their creative accounting hadnt been noticed all circumstances unfortunately at least u are looking at it now and im sure we have both learnt our lessons

[postggj]

we live and learn

 

welcome to cag

[tia1985]

thanks

 

i do really appreciate your help. ill wait for welcome to get back to me and upload the agreement - just in case ive missed something!!!

 

and thanks for the welcome - its good to be here... ive only just realised ( after 6 years of abusing debt etc) that i really need to get my act into gear - my credit score improved from 100 to 500 ish points in 1 year ( wohooooooooo) so onwards and upwards!!!

[beyondhope]

well done u!!! i dread to think what mine is i have seen my report but not my score maybe something worth finding out me thinks

[tia1985]

it is gud to see - i get mine through credit expert... they offer the whole 1 month for free thing.... ive found them really usefull and whenever ive had any problems their call centre have been really efficient and nice too.

[beyondhope]

im sure thats where i got my report from did the £2 paper option as it was purely out of interest but now i want to keep an eye whats happening on the welcome account it may very well be worth joining it thanks

[tia1985]

your most welcome

[MandM]

Hello,

Very interesting coments you made about your loan, if you are in need of any help, please contact me! I am an independent financial advisor and may possibly help you clear all your debts, if you are in need of help during these difficult times please don't hesitate to reply!

 

kind Regrads

 

Finance........take a hike........post reported!

 

M