Warning because millions of payday loan customers only have weeks to request repayments
Four million people may be entitled to a refund – but you have until the end of February to claim it.
Following an August 2021 court ruling, borrowers who have been badly sold home loans by Provident Financial can get some of their money back.
Under a new indemnity deal, customers who were given unaffordable loans through Provident or the three brands it owned – Satsuma, Greenwood and Gio, can now claim reimbursement.
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The “scheme of arrangement” system allows clients with outstanding claims to be reimbursed.
But last year the Mirror reported that many Provident customers would find the news a disappointment, as the lender believes they can only repay an average of 5-10% of disputed loans.
But it’s better than nothing – and nothing was a very real possibility.
Provident asked the High Court in London to approve the scheme because it feared it would not be able to reimburse all clients who filed complaints without running out of money.
The financial ombudsman’s watchdog sided with customers in three-quarters of the complaints against Provident.
So you are unlikely to get all your money back, but you could still receive hundreds of pounds in compensation.
You could even get back more than 10% of your loan if fewer people are claiming than Provident expects.
Around 4.3million loans are covered by cash, of which Provident has set aside Â£ 50million, and were all issued between April 7, 2007 and December 17, 2020.
The loans, which were issued by the four different brands, were sold between April 6, 2007 and December 17, 2020.
To be eligible for reimbursement, you must have taken out a loan during the period that was unaffordable.
This means that you would be unable to pay off the loan along with your bills and living expenses.
But now you only have a few weeks to apply for a refund.
You can make the claim online here.
If you have a valid claim, Provident will tell you how much you will be reimbursed.
He will also show how he came up with the figure he is offering you.
Provident Managing Director Malcolm Le May said: “We expect creditors to receive reparation payments in the second half of 2022.”
But the deal was criticized by the regulator of the Financial Conduct Authority, which said: “We have made it clear that we do not support the program for a number of reasons, including the main concern that consumers see themselves. offer much less than the full amount of the repair. they are owed. “
The program will close before the end of February 2022.
In May 2021, Provident announced that it would be retiring from the home loan after more than 140 years.
The lender, which reported a loss of Â£ 113million for the year, cited “changing customer preferences” for its decision to stop pushing loans on people’s doors.
Provident has been lending and collecting reimbursements on the doorstep since the 1880s.
Many of his loans are for short-term repayments and are often small amounts – typically a few hundred dollars.
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