You are here: Home - Credit Cards & Loans - News -

Provident sets deadline for mis-selling claims

Written by: Emma Lunn
Borrowers with Provident, Satsuma, Glo and Greenwood can claim for mis-selling up until 28 February 2022.

Provident sold ‘doorstep’ loans where the cash was delivered to customers’ homes and payments also collected in cash. Loans had a typical APR of 535.3%. Satsuma sold short-term loans with the same typical APR.

But Provident faced a wave of mis-selling complaints by customers, partly driven by claims management companies. The deluge of compensation claims prompted it to stop lending in May last year. 

A legal process called a scheme of arrangement is currently in place for the purpose of assessing and paying compensation claims for unaffordable lending against PPC (which traded under the brand names Provident, Glo and Satsuma) and Greenwood Personal Credit Limited (“Greenwood”). 

If you received a loan from PPC or Greenwood, or guaranteed a loan from Glo, between 6 April 2007 and 17 December 2020, you can visit the scheme website where you will be able to view more information about the scheme and next steps if you think you may have a claim.  

Mis-selling claims include customers being sold unaffordable loans. Some borrowers couldn’t keep up with repayments while others borrowed money to pay them – and got into more debt.

Borrowers are advised to make claims directly to Provident. Making a claim via a third party, such as a claims management company, could potentially incur additional costs and result in you not receiving the full amount due.

Provident has now set a deadline of 28 February 2022 for claims under the scheme. 

Provident announced in December that it was closing its doors for good with borrowers’ debts written off from 31 December 2021.

Provident hasn’t disclosed the average balance that was wiped or the exact number of people who had their loans written off, but the move meant thousands of borrowers had their debts written off before the end of last year.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week