i have a loan with Welcome - Extortionate APR.

[Jamesx81x]

Hi

 

Does anyone know of any way you can challenge a companies APR and how high it has to be before it can be classed as extortionate?

 

I have a loan with Welcome and the APR stands at %60 and another with Provident and we all know about them.

 

People may say you knew the APR before entering these loans but when your in need and these are the only companies that can help then its too tempting.

 

I want to challenge these companies as i am paying off my loan and it never seems to be going down.

 

Any advice appreciated.

 

Thanks

[spicester]

If you were aware of the APR when you signed the credit agreement - and you will have been if you read it properly then you do not have a leg to stand on.

I too have provident and welcome loans - they don't appear to go down quickly at first - just like a mortgage you pay off interest for the vast majority of th term and only in the latter stages start top really clear the debt. Best advice? bite the bullet and search for a reasonable APR consolidation loan.

You will still pay a lot to pay off the original loans - more than the original ammount you got but if you get a lower apr then long term you will save.

[Jamesx81x]

Just found this info on unfair terms hope it helps other people in same situation.

 

From 6 April 2007, if you take out a loan, or enter into any other type of credit agreement, you can make a complaint if you think any aspect of the agreement is unfair. For example, you might think your credit agreement is unfair because:

 

• you have been charged interest at an exceptionally high rate
  
• the creditor gave you wrong or misleading information, or didn't give you enough information when you were deciding whether to take out the loan
  
• the creditor failed to make a proper assessment of whether the loan was suitable for you.

There are other reasons you might think your credit agreement is unfair.

 

 

You can make a complaint to the Financial Ombudsman Service. If the Ombudsman agrees that your credit agreement is unfair, they can order the creditor to pay you compensation and to put the matter right. The Ombudsman's decision is legally binding and can be enforced by a court.

[Curlyben]

So James do ANY of these points apply ??

I woudln't class 60% as exceptionally high, look at Log Book Loans for extremely high rates.

Did they give you misleading information or an inproper assesment ???

 

Also these apply on loans taken out after April 2007, is this your loan ?

[Jamesx81x]

Yeah thanks for the clever reply.

 

It appys to the loan i have with Provident and will apply to alot of other people who have hight interest loans.

 

With regards to Welcome Finance:

Yes i was mis-sold PPI

Yes they mis-led me with their T&C

Think it costs £25 to ring me

Think it costs £20 to write to me

 

Oh and yes it was taken out after April 2007.

 

It was some info for people with unfair agreements who wondered what to do about them.

 

So how about wind your neck in??

[demon_x_slash]

How about you be polite to people who are trying to give you genuine advice by asking questions pertinent to your situation? Or did you just come on here to be sycophantically agreed with, regardless of the actual legalities, hmm?

[Jamesx81x]

Shouldnt ask in a clever manner then and wouldnt receive a clever answer!

 

Simple as that!

[demon_x_slash]

So you define 'clever' as asking questions about your situation in order to ascertain the right course? Then thank you. You have confirmed my opinion as to your nature.

[Curlyben]

James, I wasn't trying to be clever but point out a few things.

Now as I mentioned 60% ISN'T considered high, Log Book Loans TYPICAL rate is OVER 300% !!!. Now THAT is extreme.

 

The fact you think you where mis-sold PPI (for an undisclosed reason), and the high "admin" charges are a different matter altogether.

 

Challenging the high "admn" charges is easy, the PPI is another matter and more information would be needed for effective help.

 

As you seem to be in a combative frame of mind, I'm not really sure if it would be worth anyones while even advising you of the best course of action.

[Jamesx81x]

My apolgies.

 

Thought it was another sarcastic reply seem to be having a few of them lately!

 

[demon_x_slash]

Glad that's sorted amicably

[caprikid]

Just found this info on unfair terms hope it helps other people in same situation.

 

From 6 April 2007, if you take out a loan, or enter into any other type of credit agreement, you can make a complaint if you think any aspect of the agreement is unfair. For example, you might think your credit agreement is unfair because:

• you have been charged interest at an exceptionally high rate
  
• the creditor gave you wrong or misleading information, or didn't give you enough information when you were deciding whether to take out the loan
  
• the creditor failed to make a proper assessment of whether the loan was suitable for you.

There are other reasons you might think your credit agreement is unfair.

 

 

You can make a complaint to the Financial Ombudsman Service. If the Ombudsman agrees that your credit agreement is unfair, they can order the creditor to pay you compensation and to put the matter right. The Ombudsman's decision is legally binding and can be enforced by a court.

 

 

Hi James , Some very sound info there , Would you think the Financial ombudsman would be able to advise/help me regarding a loan contract I have with Log Book Loans ?? I was told that the Financial Ombudsman Service only deal with High Street banks and mortgage companys do you know if this is still true ???

 

I was never told that the APR was 375% but it was written on the loan contract but I was stupid enough not to notice it , however there is a part on the contract that says Log Book Loans cannot take the car without a court order !!they did take it without a court order so would that be enought to contact the Financial Ombudsman about or would I be waisting my time ??.

 

I was not made aware that the loan was any different from a normal loan I have had cars on HP before and never had any problems but my payments with Log Book Loans were almost up to date I hade payed them back more than double the amount I borrowed and they came and took my car without warning !! when I was out . Cheers Alex

[Jamesx81x]

Hi

 

They deal with all kinds of financial institutes thats where i got the info from. At the moment it only applies to agreements taken out after April 2007 but from April 2008 will apply to all agreements.

 

As the APR is on the agreement they can argue this with you. Then again you could say they didnt give you enough information or allowed you to read the agreement properly.

 

Did they credit check you or assess your bank statements to see your income and outgoings? If not you could argue that they didnt assess your suitability for a loan and whether that you would be comfortably afford repayments.

 

As for the car im sure they cant just take it without a court order but dont quote me on that. Best bet will be to go to your local Citizens Advice they will point you in the right direction.

 

Good luck!

[buzby]

All depends on the type of arrangement. If HP, then yes, there's no problem they can reposess without going to court. If you've simply bought money from them to buy the car, then - if the loan is secured on the vehicle, again they can reposess this to mitigate their loss in case of non-payment. If the car forms no part of the deal, then they cannot take it without formal court action against you, and they treat it as an asset.

[pinkmoomin]

I was never told that the APR was 375% but it was written on the loan contract but I was stupid enough not to notice it , however there is a part on the contract that says Log Book Loans cannot take the car without a court order !!

 

Sorry, old thread, but - where in your contract was this? I don't have it in mine, just lots about how they may seize it from anywhere and can break in if they wish!