Provident sets deadline for mis-selling claims
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.