WF Interest rates

[rcl]

I took an unsecured loa out with welcome finance, which is almost paid up (finishes in Feb 2011)

 

I recently asked for a statement showing the balance of the loan

 

Head office sent me a statement showing one figure, with one interest rate

local branch also sent me a statement, however, this shows a different balance outstanding (by about £100) and another interest rate

 

Both interest rates differ from the one on the CCA form I signed

 

Also, when I look back thru my paperwork, Welcome sent me two forms, one with PPI on it, and one without PPI on it.

 

We signed the one with NO PPI, and this is the loan we took out, However, whilst looking at their paperwork this morning it seems if I had taken the loan with PPI, they would have offered me a lower interest rate on the loan

 

Should I just see what they come back with in relation to my letter querying the difference in interest rates and settlement figures, ?

 

Is it worth me complaining about getting a better interest rate if I had taken the PPI ?

[mark1arby]

It wiould be v interesting to know why they offer different rates for taking PPI and not taking it!

 

What are the three different interest rates please.

 

Cheers Mark

[rcl]

These interest rates are a shocker !!!

 

on the agreement i signed, no PPI, it states £3000 borrowed (with a £75 acceptance fee and MIF!) over 24 months £187.49 APR 51.71% Rate of Interest Per Annum 47.64 %

 

on the agreement I didnt sign, with PPI, it states £3000 loan, personal accident £195.00, PPI £715.55 Acceptance feeand MIF £75.00 over 24 months £24301 APR 50.76%, Rate of Interest per Annum 47.64%

 

on the recent statement Credit £3075.00 Annual interest rate 39.60% MINIMUM duration of greement 24 months

 

Does anyone know what MIF is ?

 

The statement is also showing a fee assessment has been added each month. Only £1.22 or 85p, small amounts, but no idea what this is !!

 

Also notices that welcome have signed the credit agreement 21 days after we did !!

[mark1arby]

Have a look at this. I don`t know if this has been updated at all. It is the OFT`s Giudance on Discounted APR`s and PPI, from 2000 so may be a bit too pld.

 

http://www.oft.gov.uk/shared_oft/reports/consumer_credit/oft299.pdf

 

MIF as been the subject of much discussion on this forum for a very long time. My understanding is that it is an insurance that the loan company take out against you defaulting. Some people seem to believe it should only be in use on loans over £25,000. BUT I do remember a statement from a Financial Adviser(or something of that ilk), somewhere on CAG, don`t ask me where, saying that MIF could officially be used on any size loan, but it would be VERY unusual and a waste of time really for it to used on a small amount. So you can guarantee if that is the case the only reason these **** would have it on any agreement would be for their own benefit and not the customers.

 

Does any body know what the fee assessment is for? I have asked this before and never had a definitive answer. APR`s and such are really way out of most peoples understanding I`m afraid. Hopefully the link above will help. Or some one will be along soon my friend, I`m sure.

 

Cheers, Mark

 

May be not a lot of help at all here, but it will bump your thread for further and better people to have a look at this for you.

Edited November 12, 2010 by mark1arby
additional info.

[mark1arby]

Sorry here we go!!! LOL Is that link working?

 

Cheers Mark

[brassed-off-2]

MIF, is a mortgage indemnity fee, and in my opinion should not be added to an unsecured loan!!!

I would suggest you send off for a Dsar asap.

[mark1arby]

MIF, is a mortgage indemnity fee, and in my opinion should not be added to an unsecured loan!!!

I would suggest you send off for a Dsar asap.

 

Brassed I agree totally about the MIF. It is just another tool for getting more out of the customer. If it is an insurance to benifit the creditor, why are we as the customer paying for it?

[rcl]

Thanks Mark for the link and the advice, Ive printed off the OFT sheets and am sure I will be quoting some of that to them in my complaint

 

Thanks too brassed off, do you mean i should SAR them ? I already have my contract and statements. do i need anything else ?

 

 

Guys, I tried to click your scales for helping me, to add to your rep, and they seem to have disappeared, but thanks anyway !

[rcl]

Im going to write another letter of complaint to welcome. Ive already written one on harassment from local branch when i had to cancel my direct debit in september as my bank card had been cloned

 

The new complaint will be based on

 

1. £75.00 accepatance fee and MIF being added to the loan amount

2. Interest added to the £75 MIF/acceptance fee

3. Communication from local branch during my last complaint

4. Charges being added to my account whlilst the complaint was being dealt with

5. Fee assessment charges being added to the account

6. Default notice issued by local branch while account was in dispute, despite me telling them my bank card had been cloned, and also that the account was in dispute

7. The amount of charges being added to the account

8. Two statements, same date, one from head office, one from local branch, have different totals

9. APR differs from contract and statement

10. At time the contract was signed, APR offered was lower if i took PPI