Am I over paying?

[stevorocks]

Hi all, like a fool i took out a loan with Welcome Finance.

 

It was for £3000, over 36 months.

My payments are £151.55/month, of which i have paid 37. totaling £5607.35, this isn't taking into consideration 3 payments that i missed early on in the agreement.

 

By my reckoning 36 months at £151,55 = £5455.80.

 

So does this mean that i've paid back what I owe or, as the recent letter I received states, I still have an outstanding balance of £2326.17.

 

How can this be?

 

Any help would be awesome.

 

Thanks in advance.

 

Stevo.:-?

[grantyblade]

It looks like there could be a number of charges etc and additional interest applied to your account. Some guys on here are great with figures so you may need to post up your agreement (minus your personal details!) so someone could take a look. Have you had any statements from them? This should detail any 'abnormalities' they added onto your agreement. You should be able to reclaim them. I'm in that process at the mo. What I would suggest is you send off a Subject Access request. That will detail all the activity on your account, including your agreements, statements and all contact between you and welcome. They are a most interesting and eye opening read! Looks like you have definitely been stung, like many of us. Take a trail through many of the threads on here.

[stevorocks]

First cheers,

 

i dont have my original agreement, ive just received my personal loan statement which basically tells of all my transactions. and my payments = 5607.35 of which 3780.19 is "capitalisation"

 

i did miss some payments early on which no doubt i was charged for, plus two letters and two phone calls which adds up to £40 which is nice!!!! they are proper scumbags , but we will win.

 

i will sort that "subject access request" out tomorrow

 

 

Anyone out there good with figures that can shed any light on this?

 

thanks again, all info is greatly received.

 

Stevo

[grantyblade]

What king of figures are the capitalisation amounts? If they are round figures (eg £5, £10 or £20) they may be hidden charges!

[stevorocks]

about 7 are £10 and 2 are £20.

 

also what is default sum fee interest? they started adding this for no apparent reason. it was 8 months after i had made a default on a payment and i'm still being charged for this every month? it was 34p then went to 40p for a month and for the last 3 months its been £1.22?

 

it seems strange to me. thanks again

 

stevo

[princessrachellucy]

hiya, im in the same boat as you and just sent my subject accsess off. the defaul sum interest is when you have missed a payment, its the interest on the missed payment, your capitalisation should be going every month if you are paying every month.

[stevorocks]

bump for the weekend:roll:

[Suetonius]

Hello, does your agreement state if your interest is calculated daily ?

[stevorocks]

when i took out the agreement i was told it was calculated monthly, at about 3.9% off the top of my head, (it was a few years ago now) but on my recent personal loan statement it states 42.00% annual interest rate.

thanks

stevo

[Suetonius]

when i took out the agreement i was told it was calculated monthly, at about 3.9% off the top of my head, (it was a few years ago now) but on my recent personal loan statement it states 42.00% annual interest rate.

thanks

stevo

 

Hello Stevo

 

Sounds like a typical selling ploy.... They tell you the monthly rate as it sounds so much lower than the annual rate

 

3.9% per month (x 12) is 46.8% per year

[Suetonius]

What did it state on your agreement ?

[stevorocks]

i lost all the original stuff when i moved house, so i dont have the original agreement

[stevorocks]

so guys do you think i have a case for stopping my payments or making a very low settlement offer?

[beyondhope]

unfortunately there is no case for stopping payments as account in dispute stands for nothing since the ruling christmas time, if you choose to stop that is entirely your decision but be aware they are allowed to chase for payments. As for offering a settlement the worst they can say is no just make sure everything is in writing

[stevorocks]

^^^^^cheers, i mite offer them £151.55 as a final payment

[stevorocks]

also, the guy that sold me the loan came to my house, i signed the agreement and the money was in my back within 3-4 days.

Should i have had a cooling off period before receiving the funds? please advise, thanks guys