OVER four million Britons could be owed cash after taking out unaffordable payday and doorstep loans.
Provident Financial, Greenwood, Flo and Satsuma customers have just one month to make their claim before the February 28th deadline.
You could get refunds on mis-sold loans even if you paid off the debt years ago, so it’s worth checking.
Customers can avail credit from four different brands:
- Provident Doorstep Loans
- Greenwood Doorstep Loans
- Payday loan via Satsuma
- Guarantee loan through Glo
These loans were granted between April 6, 2007 and December 17, 2020. So if you bought a product between these dates, you could be owed cash.
Regulators found that these products were unfairly sold to people and that vendors did not conduct the proper affordability checks.
Ex-customers can get a share of a £50m pot that has been set aside for reimbursement to anyone with a successful claim.
But borrowers could still get hundreds of pounds worth of cash, and if you don’t make a claim, you won’t get anything back at all.
If you’re successful, you could also get bad grades removed from your borrowing, which is really important since it affects everything from getting a mortgage to the interest you pay on credit cards.
Sara Williams from the blog debt camel told The Sun: “Provident loans were only meant to be used for short-term borrowing – that’s why the interest rate was so high.
“But Provident did not properly screen the borrowers. Hundreds of thousands of people have taken loans from Provident for years without interruption.
“You have a good chance of getting a ‘bad loan’ claim – even if you made all the repayments on time!
“If you win, you’ll get back some of the interest paid – it’s worth making that claim.”
Anyone who took out a loan from Provident, Satsuma, Greenwood and Glo between April 6, 2007 and December 17, 2020 could be eligible for a refund.
If the loan was unaffordable, it is worth applying, for example if you were struggling with repayments or had to borrow money and got into debt.
How much you get back depends on how much you borrowed and for how long.
Your payout also depends on how many other people successfully claim, as there is a fixed pot of cash to be shared.
Refunds will be paid after the program ends on February 28, 2022 at 5:00 p.m.
However, the money is not paid out immediately, as each claim has to be checked and the amounts owed have to be determined.
How to request a refund
If you think you received an unpayable loan from Provident, Satsuma, Greenwood or Glo, you can easily file a claim.
First you have to go scheme.providentpersonalcredit.com.
You can then fill out a form online or make a complaint by telephone on 0800 0568936. You can also download a submission form.
Submitting a claim is free as long as you do it yourself. If you hire a claims management company, they will withhold some of the money you get back.
You will need a scheme ID, which you should have received by email or letter, but you can call the number above if you lose it.
You don’t need details of your loan to make the claim, but you may need to provide evidence of defaults or CCJs.
You can find this on your credit report if the missed payments were in the last six years.
If you have taken out more than one product with these companies, you will need to contact the loan provider.
Sara says, “If you think you have two accounts – maybe you’ve moved or changed your email address or some other reason – let Provident know by emailing [email protected] send co.uk.
“If you don’t get a helpful answer in a few weeks, call them and ask.
“This is very important. You want a claim to be submitted for both accounts. And you want both accounts to be considered a single account, not two separate ones, as it may mean you get a bigger refund.”
It’s better to file a claim sooner rather than later – just in case there’s a problem submitting information just before the deadline.
You can even reclaim if you previously declined a refund or accepted a low amount.
It turned out that the company had rejected too many complaints, so many rejected people could still get money back.
Sarah guesses that you can make a claim regardless of whether you paid the loan on time, defaulted, or the loan was sold to a collection agency.
If your loan was sold to a debt collector, Provident will attempt to repurchase the loan and pay it under the program.
None of the four companies are currently lending to new customers and Provident has written off outstanding doorstep loans as of December 31, 2021.
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