i had no other place to go when clearing debts and took out a welcome finance loan because of adverse history. unfortunately, payments are 247.74 a month and for a fixed term of three years. welcome told me i could pay the loan of early but would have to continue paying the monthly 247.74 for three years. is there a law against this?
2007-04-02 10:17:04 · 8 answers · asked by karen-emma b 1 in Business & Finance ➔ Credit
Hi there, i had a loan with them and repaid them early. I sent a letter to the nearest office by fax and post requesting a full balance statement of the amount oustanding as i was wanting to pay it off. I did receive a full statement showing what i had to pay to clear the loan off and promptly sent off a cheque with a covering letter asking them to reply that this will clear my account and that i wanted it in writing to them that by clearing my account there were no further charges and to report to the credit files.
Although i did have wait nearly 2 months after they banked the cheque for confirmation of this i did eventually get it in writing which i passed a copy anyway to experian / equifax so they could update my records manually as Welcome arent the quickest at doing this for some reason.
They really dont like you to repay early.
Just check in yell.com for your nearest office and send a letter addressed to the Account Manager for the settlement amount and keep chasing them until you get what you need done.
Also for a bit of info if you cannot keep up repayments they dont allow you to reduce your payments (i.e take the loan out over a longer term to reduce your repayments).They used to but they are trying to move away from allowing this.
Good luck!
2007-04-02 21:44:20 · answer #1 · answered by gezza 2 · 0⤊ 0⤋
Depends on what your contract says and in which state you live. In some states, it is legal to have a pre-payment penalty clause in the loan papers.
2007-04-02 10:20:23 · answer #2 · answered by Still reading 6 · 0⤊ 0⤋
At a guess they will want 36 x 247.74 = £8918.64 total out of you one way or another....
Get out the Contract you never bothered to read (or perhaps just failed to understand) and search for any bit that says something about "Early Repayment Penalties".
2007-04-02 10:32:10 · answer #3 · answered by Steve B 7 · 0⤊ 0⤋
ur scaring me now, my welcome loan came through today, but im only patying 169 s month obv didn't borrow as much, but can i ask did they mess u about at first? i applied over 2 onths ago, and didn't hear anything, i had to keep chasing them until i asked to speak tio a manager last week, and told them i would go elsewhere until whaddyaknow, they paid today did this happen to you?
2007-04-02 10:21:15 · answer #4 · answered by white_funny_girl 3 · 0⤊ 0⤋
If you have to deal with a company like this you should seek advice from the citizens advice bureau
2007-04-02 10:26:04 · answer #5 · answered by brian t 5 · 0⤊ 0⤋
i think that the below website will help you to find the right solution
2007-04-02 20:29:57 · answer #6 · answered by jack 2 · 0⤊ 0⤋
dont no they r doing the same with me RIP OFFS
2007-04-02 11:06:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Welcome Finance Loans
2016-11-07 01:30:16 · answer #8 · answered by ? 4 · 0⤊ 0⤋