Welcome Finance

I have a secured loan with Welcome Finance which commenced in October 2002 for £10,000. Since this time I have paid back, in total £13,054.92 (May 200 at regular payments of £274.36 per month. I have recently suffered some financial difficulties and as a result have had to sell my property to which the loan is secured upon.

I requested a redemption figure to settle the loan amount, to find that Welcome Finance wanted an additional £14,610.62 to remove the charge on the property and enable the sale to be completed. I find the amount of interest they have charged and the settlement figure issued, totally unfair and inappropriate from a consumer point of view. I have approached Welcome Finance with what equity I will have left after the sale of the property, to the sum of £4,300, which they have refused.
As you can understand, the property has been sold and time is of the essence, as I cannot afford to lose the sale of the property due to the current property climate. Welcome Finance is certainly not helping with this time frame.

After contacting Welcome Finance in regards to the shocking outstanding amount of £14,610.62, they have made me aware that I would be able to reschedule this outstanding amount into a Personal Loan. However, to add to salt to the wound, Welcome Finance have stated that rescheduling the outstanding amount of pure interest (£14,610.62) into a personal loan with them, which to my disgust, would charge further interest on this amount, at the rate of approximately 64.4% as advertised.

I borrowed £10,000 in 2002, and having already paid back the mentioned amount of £13,054.92, Welcome Finance are already profiting to the sum of £3,054.92. If I was to agree to pay the further outstanding amount of £14,610.62 would surely seem a ridiculously high, unfair amount of pure interest. Along with this, with the mentioned interest of 64.4% their looking to charge on the personal loan, I would in effect; be paying back approximately £80,000 for a £10,000 loan which was taken out six years ago.

How can Welcome Finance justify this ridiculous amount? Surely this cannot be allowed, along with charging interest on top of interest, which I find absolutely disgusting and unfair. I now understand why people are suffering at the hands of companies like Welcome Finance during this difficult time.

I have requested the terms and conditions of the loan on several occasions by telephone and by letter. However, it would appear that Welcome Finance only really want dialogue or responses if you don’t pay your monthly instalment with threats of Court proceeding etc.
In light of the current situation regarding companies like Welcome Finance profiting from people who can ill afford such large amounts of interest, I find it unacceptable that this can be allowed, and is being allowed. It would seem that Welcome Finance survive on people who are vulnerable and uneducated regarding finances, as I was when undertaking this loan. I can safely say that if I had known then, what I know now, this would never have been agreed.

My complaint and subsequent reporting of the unfair terms that this loan agreement is based upon, is for my benefit and for others who have loans with Welcome Finance. However, after repeated requests for copies of the terms that were in place when the loan commenced, it would appear that Welcome Finance do not wish to comment or supply these terms and conditions to the small customers like myself.

As you can understand this issue is very frustrating and extremely upsetting, not only to me, but to others who are suffering financially. I would appreciate any help in regards to this matter and hope that you may look into the terms that Welcome Finance issue to unsuspecting customers, current and future.

Cheers