Provident to wipe loans for tens of thousands of borrowers - what it means for you
Tens of thousands of borrowers with high interest loans are set to see their remaining debts cleared as doorstep lender Provident and short-term lender Satsuma officially shut shop and stop collecting payments. Borrowers can still submit claims for mis-sold loans though, but you'll need to be quick.
Financial firm Provident Personal Credit, which includes the Provident and Satsuma brands, has announced that it will no longer collect payments for existing loans after 31 December 2021. Affected borrowers should receive an email or letter explaining that they can stop making repayments on receipt of this notification - even if that's before 31 December.
This means that if you still owe money on your loan, the amount will be set to zero and your credit file will be updated to show the balance as zero and the loan as partially settled by 31 December. Any payments you make after 31 December will be refunded to you but it's best to cancel direct debits set to go out after this date.
While Provident was unable to disclose the average balance that will be wiped or the exact number of people who’ll have their loans written off, it did confirm that it expects tens of thousands of borrowers to benefit.
The firm, which no longer gives out new loans, previously provided short-term, guarantor and doorstep loans, charging interest as high as 1,557.7% APR in some cases, to borrowers who struggled to access standard credit. But it's been hit hard by mis-selling claims for incorrectly issued loans and will now permanently close on 31 December.
See our reclaim payday loans guide for more info on how these lenders worked.
You can still submit a mis-selling complaint online – but you’ll have to be quick
If you couldn't afford the loan over its term when you took it out, whether you're the borrower or guarantor, it was likely issued incorrectly – meaning you might have a valid affordability complaint. You may not get the full amount you’re owed as payouts have been capped. But don’t let that put you off, as you could still get back £100s.
A dedicated online claims portal has been set up for Provident and Satsuma customers and you can now register to claim via the scheme's website. You won't need your loan details or paperwork, but you'll be asked to provide your scheme ID, which you should be able to find on top of any letters or emails you've been sent about it. If you don't have this, or you need further help, you can email email@example.com or call its hotline on 0800 056 8936.
The deadline for submitting complaints is 28 February 2022, but it's best to get your complaint in ASAP in case there are any problems submitting your claim.
Unsure if you can claim? Our reclaim payday loans guide runs through everything you need to know.
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