Welcome Finance, What To Do ?

[EYECATCHER]

I wonder if any one can help, at the moment i have no issue with Welcome however i took out a personal unsecured loan with them 2 years ago when i was in full time employment. Since then about 18 months ago i was made redundant but i have struggled to keep the repayments up to date, I have never missed or been late with a payment. Now my finances have become so stretched i must get in touch with them to get the repayment reduced. The next payment is due in a few weeks but i will not be able to make it in full. I pay by direct debit should I cancel this as the bank will charge me if it is returned due to insufficient funds in the account. I currently pay £131. per month and need it reduced to around £70. until i am back in employment. Can anyone please advise me on how to go about it. I have read with interest some of the horror stories on this site and do not want constant phone calls or visits that they will charge me for.

[postggj]

do you have a copy of your agreement so i can go over the figures

[EYECATCHER]

do you have a copy of your agreement so i can go over the figures

Thanks for your speedy response, I do have a copy of the agreement however I do not have the facility to scan it.

These are the figures....

FIXED-SUM LOAN AGREEMENT.

Amount of credit for cash advance £2500

Duration 36 months

Amount £131.51

APR 59.39%

Total charge for credit £2234.36

Acceptance fee £75

Interest charge £2159.36

Rate of interest per annum variable 55.55%

 

There are no insurances on the agreement.

Date of agreement 10-04-08

Edited March 22, 2010 by EYECATCHER

[postggj]

Give Me Half An Hour While I Do The Figures

[postggj]

Ive Rounded Off The Apr To 59 %

A Loan Of £2500 Over Three Years At 59 %apr Gives

 

Monthly Repayment £131.51

Interest £2,234.35

Total Payable £4734.35

Now We Add On £75 Acceptance Fee

 

Total Payable £4809.35

Devide By 36 To Give A Monthly Repayment Of £133.59

[postggj]

Remember

 

My Interest Is Lower As I Did It At 59 %

Not The Stated 59.39 %

 

PLEASE CONFIRM THE INTEREST CHARGE POSTED

 

charge 32159.36 ????

[EYECATCHER]

Sorry postggj typing error on my part Interest charge should read..£2159.36

[postggj]

On Welcomes Figures I Make The Apr 63.5 % Not 59.9 %

 

On My Figures Its 65.7 %

 

Seems Interest Rate And Total Amount Payable Mis-stated

 

Ill Let Ozzy Go Over My Figures But Its

 

Game Over Welcome

[emanevs]

Thanks for your speedy response, I do have a copy of the agreement however I do not have the facility to scan it.

These are the figures....

FIXED-SUM LOAN AGREEMENT.

Amount of credit for cash advance £2500

Duration 36 months

Amount £131.51

APR 59.39%

Total charge for credit £2234.36

Acceptance fee £75

Interest charge £2159.36

Rate of interest per annum variable 55.55%

 

There are no insurances on the agreement.

Date of agreement 10-04-08

 

On £2500 total amount of credit (or loan)

 

I make it:

 

Total amount payable: 4734.36

Total charge for credit: 2234.36

Period rate: 3.96132756654

Nominal annual rate: 47.5359307984

Effective annual rate: 59.3902679338

APR: 59.4%

 

As per the Wilson case, the fees must not be added to the total amount of credit.

[EYECATCHER]

Thanks guys, What can i do next ?

[postggj]

give me a few days

[EYECATCHER]

"bump"

[EYECATCHER]

"Bump"

[EYECATCHER]

How we doing Post, I know you are very busy. payment due soon.

[EYECATCHER]

"bump"

[EYECATCHER]

:(Given up, It looks like i will have to go it alone.

[emanevs]

On £2500 total amount of credit (or loan)

 

I make it:

 

Total amount payable: 4734.36

Total charge for credit: 2234.36

Period rate: 3.96132756654

Nominal annual rate: 47.5359307984

Effective annual rate: 59.3902679338

APR: 59.4%

 

 

As per the Wilson case, the fees must not be added to the total amount of credit.

 

If the agreement figures are in line with the above, then I suppose the agreement is ok.

 

The only thing you can probably go for is if they havent stated the prescribed terms under the act.

[ukaviator]

Hi Eyecatcher

 

It maybe an idea to PM postggj he may have forgotten to check your figures. If those are correct the agreement maybe unenforcable, that interest rate is high.

 

What you should do if the figures come back correct is fill in an income and expenditure spreadsheet for them to see what your outgoings are. There is one attached here for you to fill in:

 

http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=17158&d=1268687658

 

Remember the roof over your head, food bills, council tax, electric and gas come first. Fill in the form and see what you have left to spread amongst your other creditors also.