Debt Camel

Answers to questions about debts and credit ratings - in plain English!

Provident’s Scheme to cap refunds – the background

UPDATE On 4 August 2021 the Scheme was approved in court.
See Provident Scheme – 4 million people can now claim a refund to find out how it will work and how to make a claim.

This article gives the background to the Scheme and what happened before voting started.

In March 2021 Provident Financial Group (PFG) proposed a Scheme of Arrangement to reduce the refunds it has to pay to customers. They are the second major lender to seek refuge in a Scheme after the pandemic  – Amigo is also proposing one.

The PFG announcement also said that the FCA has started an investigation into Provident’s affordability assessments and complaint handling since February 2020.

PFG says it can’t carry on paying refunds to customers winning affordability complaints about Provident Home Credit loans and Satsuma payday loans. The Financial Ombudsman (FOS) has been upholding 75% of these complaints against Provident;

If the Scheme is not approved, PFG says it is likely that Provident Person Credit Ltd (PPC) which operates the Provident Home Credit and Satsuma brands will go into administration which would mean no cash refunds for customers. In administration, however customers with a current loan would be entitled to balance reductions or write-offs if their claim is upheld.

PFG has two other divisions which will not be affected by the Scheme. Vanquis Bank is best known as a credit card lender. Moneybarn provides high cost car finance.

Outline of the Scheme

PFG has operated Provident Home Credit, Greenwood Home Credit (a small brand no longer used), Satsuma payday lending and Glo guarantor lending (a small brand no longer used) through its PPC subsidiary.

PFG is proposing the Scheme for all these four brands. It wants its PPC subsidiary to be able to carry on in business with new lending products. It has not given any details of these new products.

The Practice Statement Letter (PSL) gives an overview of the proposed Scheme, which will limit the refunds PFG has to pay to Provident Home Credit and Satsuma customers payday loan customers. FOS fees will also be included within the Scheme.

Provident is proposing to put aside £50 million to pay cash refunds in the Scheme. It says customers may get paid 10% of their proper refund. I think 10% is too optimistic, see Provident’s Scheme – will customers get less than 2% ?

The first court hearing for the Scheme on 22 April 2021 approved the voting arrangements. Voting started on 17 May, see Provident Scheme to limit refunds – how to vote on it for details.

Background to the Scheme

Provident started offering Home Credit, also known as doorstep loans, in 1880. It is the dominant lender in this sector of the UK bad credit market.

PFG’s problems began back in 2017 when it reorganised its doorstep lending operation. This went badly wrong with big software problems and sharp drops in the number of debt repayments being collected and in new loans being made, see Provident – home credit crisis for details.

PFG hoped 2020 would be the year home credit returned to profitability. But this plan was derailed by three factors.

1) The pandemic

The pandemic created major problems for all bad credit lenders as the 6-month payment breaks impacted on cash flow and made it hard to assess the numbers of loans that were likely to default.

Provident Home Credit faced additional problems as doorstep collection of weekly repayments was difficult or impossible for much of 2020. Satsuma stopped lending at the start of the first lockdown and Provident tightened its lending criteria, resulting in fewer loans being given.

2) Increasing numbers of affordability complaints in 2020

Many borrowers have had Provident loans continuously for very long periods, often increasing in size – five years is common, ten years is not unusual. An initial smallish doorstep loan often left the borrower too short of money to manage, so the loan was refinanced or another loan was taken.  Too many collection agents tended to offer new loans rather than payment arrangements when a borrower was in difficulty.

When Provident loses an affordability complaint it has to refund the interest paid. Where there has been long-term borrowing, these affordability refunds can be very large.

Complaint numbers increased significantly in 2020 as several claims management companies started advertising on social media. The number of new complaints sent to FOS shows this:

Graph showing how the number of new complaints against Provident at the Financial Ombudsman (FOS) has jumped sharply in 2020 from 2019

Provident often made very poor offers to these complaints, and sent people cheques, hoping they would be so desperate for some money they would cash the cheque and not take their complaint to FOS.

3) Legal/regulatory environment

In March 2020 FOS published a key decision on a case where a customer had 12 loans between 2009 and 2015 upholding loans 4-12 as being unaffordable.  FOS uses key decisions to set out in detail why it has made a decision.

In August 2020, the Kerrigan judgment found that a breach of the FCA’s CONC rules on affordability caused an unfair relationship and that a refund of interest paid would be an appropriate remedy. This judgment is in line with the approach FOS takes to affordability complaints.

The same month, the FCA’s Review of re-lending by high-cost lenders said:

We have significant concerns that repeat borrowing could be a strong indicator of a pattern of dependency on high-cost credit and levels of debt that are harmful to the customer.

Together FOS key decision, the Kerrigan judgment and the FCA re-lending review seem likely to have dashed any hopes Provident had that its doorstep lending could continue as it used to. In May 2020, Provident announced it was closing its doorstep lending operation completely.

Comments are now closed on this article. See the latest news about the Provident Scheme and add your comment there.

Comments

  1. Cj says

    So received an email from Neil stating that if provident have agreed to refund before the 15th then these would be paid in full.I spoke to so,done this morning And still she said they have no figures to send me…she is saying that I should ring back next week..it seems some people get answers very quickly upon ringing ..I don’t seem to be getting anywhere fast with them.. so again I’ll wait til Monday to see if I hear anything if not I’ll ring them again .28 days will be up on Wednesday

    • Chantelle says

      Same as me being passed from pillow to post Fos an profident agreed on the 4/3/2021 an still heard nothing except there sorting calculations out

      • Cj says

        Mine was agreed on he 3rd March and I sent my acceptance of the offer on the 3rd.. so they have til Wednesday which is when the 28 days are up…I think until they send the breakdown and the cheque hard not to worry .when I checked I still have a balance showing ..which is not a lot but obviously account not yet closed . So worrying I lost a lot of money when the money shop went down ..this redress is large for me and if a life changer ..hence why so worried

        • Chantelle says

          Mine was the fourth an sent then to wearer in very similar situations fingers crossed 🤞 we get good news an it’s not much longer good luck to you to

        • Susan Powell says

          Hi I had my settlement letter over 6 weeks ago still no cheque was told by them they had send out the cheque weeks ago so they will have to reissue a newl one but they only issue cheques on Thursdays so let’s see if i get it tomorrow . I have to say i sort have given up much hope

    • Amie says

      I had to keep emailing! But I didn’t contact them until the 27th day and I was persistent for a week. Explain via email that you have witnessed people receive their figures and cheques at 10 days and 15 days so what’s the hold up with your case! This is what I did and they made my case priority on the Monday and I received figures on the Tuesday. Hopefully you get your breakdown soon.

    • Maria smith says

      Do I contact provident myself can I do it by email please if so what is the email please

      • Sara (Debt Camel) says

        Any new complaint to Provident will be ignored at the moment. If the Scheme is approved, you will be able to sibmit a claim in August probably.
        Do you owe them any money at the moment?

    • Sara (Debt Camel) says

      If you want to make a claim in the Scheme, you won’t be able to do that for several months. See the timetable that is explained in the article above.

  3. Cj says

    So I have got an email.from Neil with my breakdown of refund. He said now have to wait up to 14 days for cheque to arrive. I’m assuming as interest is paid up.til 9th april that’s when I will get it…nearly done I hope

      • Chantelle says

        Neil got back to me tues with breakdown an received breakdown through letter today to now to wait for the cheque fingers crossed 🤞 within the 14 days need to look in to trying to do the r40 tax form to to see if I can claim that back once it’s all cleared in the bank hopefully you receive your cheque soon

  5. Valdemaras says

    Hi Sara I’m received letter from provident regarding claiming money back on website no his block

    • Sara (Debt Camel) says

      I am not sure what you are saying.

      Provident is proposing a “Scheme” which will give people a very small amount of money. There is only £50million to be divided between more than 4 million customers, although some of them won’t claim.

      This is all described in the article above these comments. You won’t be able to make a claim until late July – so come back here in August perhaps?

  6. Simon says

    Hi Sara,

    Provident agreed my complaint on 2 out 6 loans and sent me a cheque in July 2020. I didn’t cash it as it stated it would be in full acceptance of the decision. I sent my complaint to the FOS at the time but it still hasn’t been dealt with yet. I emailed Provident earlier this week asking to reissue the cheque as it is over 6 months old, I wasn’t aware of the scheme at the time, I got their scheme letter the next day. Provident emailed back to say I did not accept the offer and complained to the ombudsman so they will not reissue my cheque, and that all ombudsman complaints are now on hold and nothing they can do. My understanding from different sites is that as Provident had made their decision and sent a cheque before any scheme was applied for, that my complaint should be kept separate from those currently being dealt with and should not be part of the scheme. Is that right? I was still trying to contact them late 2020 and early 2021 to still try to get the information they had used to reject my other 4 loans but wasn’t getting answers from them and took a long time to log a new SAR too. I could have potentially cashed the check sooner if they had they been responding. Should they actually honour the cheque they already sent me?

    • Sara (Debt Camel) says

      My understanding from different sites is that as Provident had made their decision and sent a cheque before any scheme was applied for, that my complaint should be kept separate from those currently being dealt with and should not be part of the scheme.
      I don’t think so, you rejected their complaint and went to FOS, so your complaint will fall into to the Scheme.

      Should they actually honour the cheque they already sent me?
      I don’t know. You could try cashing it as a few older cheques may get through. Or you could email Neil.Iveson@provident.co.uk and say it is unfair you can’t cash this cheque.

      • Simon says

        Thanks for the reply Sara. I just been and put it in as a deposit through the banks cash machine. Hopefully it gets through and gets paid. It will be just my luck that they cancelled it on their system when I stupidly emailed to ask for it to be reissued, Straight after emailing them I found info that cheques are still valid after 6 months but the banks discretion if they accept them being deposited. Hopefully they do. I will try Neil if it doesn’t clear.

        • Simon says

          Update:
          I didn’t get a reply from Neil, but I got an email today from the person who dealt with my complaint previously, so I guess Neil passed it on to her.
          They said “I can confirm by going to the Financial Ombudsman Service (FOS) you disagreed with our final response which included the upheld loans. The FOS will assess all loans again once the scheme is lifted. As you disagreed with the final response in relation to which loans were upheld and not upheld they will all be reviewed again by FOS. We will not re-issue a cheque for an outcome you disagreed on. I can confirm a new complaint has been logged for your concern about the scheme.”

          If the scheme goes ahead then the FOS complaints fall into the scheme as I understand it. If the scheme doesn’t go ahead then does the FOS then carry on dealing with it? If so, would the cheque be reissued at that point if I tell the FOS that I just want to accept the cheque and leave it there? Does the FOS still deal with it if they go into liquidation? Do the FCA deal with complaints about unfair/unreasonable practices for Provident not answering my emails for so long and if they agree could they tell provident to reissue it?

          Thanks for any information.

          • Sara (Debt Camel) says

            If the scheme doesn’t go ahead then does the FOS then carry on dealing with it?
            Provident say they will put the subsidiary into administration if the Scheme doesn’t go ahead. Other results are in theory possible though – Provident is NOT short of money, it could choose to just carry on paying refunds if it wanted. This Scheme is just to benefit its shareholders.

            Does the FOS still deal with it if they go into liquidation?
            No – the complaint would be returned to the liquidators.

            Do the FCA deal with complaints about unfair/unreasonable practices for Provident not answering my emails for so long and if they agree could they tell provident to reissue it?
            FOS will not look at ANY complaints about Provident at the moment. If the Scheme doesn’t go ahead AND Provident doesn’t go into liquidation, who knows?

            I am sorry but you and other customers who were offered very poor refunds by Provident have been basically screwed. And the FCA is just standing by and watching this happening.

          • Simon says

            Thanks for the info Sara. Definitely screwed!

            Yes as I read what Provident said I was thinking she probably already knew it’s not going to end up being dealt with by the Ombudsman. I had hoped complaining to FCA about unfair treatment might have helped push them a bit but sounds like even the FCA aren’t bothered. Oh well at least I can leave it for now until we hear if the scheme is not going ahead, then back on to Ombudsman! Thanks again.

      • Simon says

        The bank called today to say they cannot deposit the cheque as it is over 6 months old and are returning it to me as expected. I’ve now sent an email to the address above for Neil explaining how Provident had not been replying to my emails when I was requesting information, and that it would have been cashed much sooner if they had been replying and how I feel it is unfair. Hopefully he sorts it out, but I am anticipating he might say he can’t do it. If he does say he can’t reissue it, is it worth speaking to the FCA to say I feel it is unreasonable or unfair?

          • Simon says

            Thanks Kelly. I only sent the email yesterday so I’ll wait until end of next week to see if I get a reply as I expect he is probably getting quite a lot of emails now! Good to see that so many people are getting their complaints answered and receiving their cheques despite Provident saying all complaint are on hold. With mine, it is a bit different as they have classed it as that I rejected their offer as I sent it to the ombudsman. Would be interesting to hear if other people who had referred to ombudsman have managed to since cash their cheques or get a reissued cheque from Provident as ombudsman adjudicator hadn’t actually made any decision on my complaint after being with them for 8 months.

  7. Suzi says

    Having read the paper work sent to me sounds like the maximum anyone is likely to get back is £100. Debts paid off etc. As I’ve had a case in with fos for 5 months I’m unlikely to get anything near what I’d roughly calculated £6000 even if fos only agreed with half of that. To be honest I’d rather they went into administration and then there would be one less company lending to the most financially vulnerable people. Don’t shoot me down just my opinion I’ve managed to get myself sorted out financially without this. 8 months of living on the bare minimum. But I can sleep now. I just feel they are getting away with this and will continue to lend to the financially vulnerable. I know people were hoping this would change their finances and give them a fresh start after years and years of living one loan to the next.

    • Martin says

      Totally agree with you. Vote No because Provident Finance is again taking the easy root out for themselves.
      They do not care one little bit to honour everyone that is due money back.

      Vote no and let them go into administration. There are other ways to hold the rest of what they own to account. Watch this space.

      Everyone vote No.

      • Liz says

        I will definitely be voting NO!! My case for approx. £6000 has been sitting with FOS since beginning of this year after Provident did not uphold it and now FOS are saying that they are not continuing with my complaint because of the scheme so nearly a year has been wasted trying to get somewhere between them. I am 2 1/2 years into an IVA now so not sure what will happen to my debt if they go into administration.

    • Mark jefferson says

      I made a complaint about provident through resolver website me and my partner did it at the same time which was jan 2020 she got hers sorted and refunded but with mine they were not communicating as i still owed £560, i took it to the FOS and now this scheme is being proposed i feel conned cos i shouldve been refunded at the same time as my partner as the complaints were the same. Is there any other way i could get a refund if they go bust?

  8. Lorraine Baldree says

    I agree with you and intend to vote against the scheme. I’d rather receive nothing and see provident go under.

    • Angela says

      Yeah VOTE NO we will only get pennies from them anyway l would rather see them go bust they want there 🍰 and it eat they are still giving loans out with large interest EVERYONE Please Vote No.

      • Issy says

        I’m definitely voting NO , they shouldn’t be allowed to put a scheme of arrangement in especially when they still own other companies making millions , I’d rather have nothing !!

  9. Amanda says

    just wondering will satsuma look into my unaffordabilty complaint raised 5 weeks ago? im not looking money just negative comments removed off my file as 2nd loan was unaffordable at the time 2019 and defaulted.. ive sent emails and been told they will respond with an update in 2 working days; still nothing that was 4 days ago. i agree we should vote no, however i really want the negative comments off.. checked 3 cras and only found that satsuma was only reported on transunion. got 1 default off and was all biz till i found this one yesterday. account was paid in full and closed june 2020.

    • Sara (Debt Camel) says

      I think that is unlikely – they will say it should be looked at as part of the Scheme.
      ironically you may find it easier to get the default removed if Provident go into administration, but that won’t be quick either.

      • Amanda says

        thanks for the response..sucks.. thought was doing well getting credit files fixed then that showed up.. weird its only on the 1 tho.. 1 more hurdle for a mortgage but will keep trying x

        • Amanda says

          sara just a wee update.. rang satsuma today to discuss my emails and that i had the complaint in already 5 weeks and will they be responding.. i was told they will not be dealing with any complaints now, that all will be going into the scheme.. so i agree with everyone.. vote no x

          • Andrew says

            I feel that The Provident is going to have a very big shock with loads and loads of people voting NO.
            And let’s see what the courts say about their other companies.

  10. Jo says

    Hi.just wondering what my next step is.31 Jan 21 I logged my complaint with provident,they replied with copies of my loans,I worked out if all loans upheld with interest I would be due 7k.I had a letter 26 Feb 21 saying they investigating and aim to complete in 28days.Since then I’ve had a letter about the proposed scheme. As there times up next week what will happen now? As they are know for poor offers I was prepared to go to finance ombudsman,however I’m aware they not going to take on new cases.So do I just sit and wait/ except any offer if any.or apply to the scheme if if goes through.Bad timing,I should of applied earlier.
    Jo

    • Sara (Debt Camel) says

      it is very unlikely you will get a reply at all to your complaint – they will want it to drop into the Scheme.

  11. Andrew says

    I have emailed Martin Lewis asking for his help.
    See if we can get maximum publicity on this.
    Provident should not be allowed to escape what they owe thousands of their customers.

    • Issy says

      Brilliant sick of these companies ripping people off this happened with money shop and amigo with me lost out in thousands of pounds , they were not interested when I was struggling to pay back these loans why should they escape paying customers what they owe them !!

    • K says

      Hello,

      Totally agree with all comments about voting NO. My complaint was submitted to FOA in November 20. Please keep us posted about Martin Lewis.

      I understand some time for delay but the FOA should be dealing with complaints in 40 working days (worth noting staff are working from home now) I just feel complaints submitted because the March deadline should still be considered.

      • Amie says

        Went hop, skipping and jumping to pay it in the bank and it shut at 2 😂😂 ill pay it in tomorrow morning lol

        • Jade says

          Haha mine came too! Managed to get it to the bank before they closed! Is showing in my transactions but hasn’t cleared yet. Fingers crossed. All over with after 15 month of waiting! Enjoy! X

        • Cj says

          Ooh wow so glad you didnt have to wait to long ..fingers crossed mine comes soon as well..😁

        • jade says

          haha fingers crossed! Mine hasn’t cleared yet. Told me 24 hours and has been over that. Have been told today that it will clear before midnight tonight. They are leaving it until the last minute lol x

  14. Kristie says

    Hello.
    Provident upheld my complaint early in 2020 and they sent me a cheque, which also stated that my provident debt would be brought back from the debt collector.
    Since January I have had letters from Lowell chasing up my provident debt and they are now taking me to court.
    They say my customer reference number for provident does not match up to there so they are still pursuing.
    Provident are looking into this but it’s so stressful when I thought things where finished.

    • Sara (Debt Camel) says

      have you had a claim from the court? Or just a Letter Before Action? Or just a statement they will be going to court?

  15. Julieanne Haggan says

    Hi,
    My mum used provident for approx 15 years and about 3 years ago I was in a financial position to finally get her out of the vicious circle of debt she had got herself into. I requested a copy of all my mums loans from Provident in December 2020 and put in a complaint on her behalf for unaffordable loans. She has yet to receive any paperwork from Provident. She has received a couple of letters stating they were looking into her claim. About a week before I had planned to make a complaint to the FOS, Provident sent a letter asking for an extension and that they required more time to look into my mums loans. I thought that was fair enough and so did not make a complaint to the FOS only to then receive a letter just the other day informing my mum of the scheme they are proposing. My mum should be entitled to a large payout from this company but it appears to me this company is going to get away with paying very little back to all their customers who were already vulnerable and had to put up with this companies shocking over inflated interest rates on their loans and got away with it for many years. And now they can’t afford to pay people back, well where has this money been going, lining a small number of fat cats pockets I bet ? I am so annoyed on my mums behalf and I do plan to pursue this claim and I have no intention of supporting their proposed scheme.

    • Jo says

      I know its so annoying actually making me rage with fury 😡
      My 8 weeks is up now and that’s it.Only communication was list of loans and letter saying they looking into my claim.
      Then a letter about the scheme of arrangement they want.Like your mum,we will get nothing now.Im definitely voting No,as I’d rather they went under and I received zero,than them being able to get their own way.

  16. Ruth says

    I’d just like to say a big thank you to everyone who contributes to this site. After receiving a cheque from Provident in October 2020 for £1200 I would’ve quite happily cashed it if it wasn’t for the poor offer stories on here. With this in mind I awaited the outcome from FOS and today I have received a cheque for 15k alongside the first cheque so I’m over noon – fingers crossed for everyone else who is still waiting 🤞🤞

    • Gary Kennedy says

      They offered me 688 pound in December so immediately complained to the ombudsman but unfortunately after the latest developments am not holding any hope

        • Gary Kennedy says

          No it came off my balance but I rejected the offer and referred to the ombudsman
          Will I fall under the scheme unfortunately?

          • Sara (Debt Camel) says

            very likely. How large is your current balance? Do you know how much interest you paid on your loans? are you making any payments at the moment?

          • Gary Kennedy says

            1600 before the refund offer…I paid about 2.5 k in total in interest
            Yes am still making payments, 30 p.w atm it’s usually 45 due to covid and reduced hours at work

          • Sara (Debt Camel) says

            So the problem is, as a reasonable refund would clear your balance, it would really be better to stop paying now.
            If you pay say £500 off the balance, then your refund would easily have cleared it, then you only get back say £50 of that £500.

      • Gary Kennedy says

        Yea it’s a joke tbh…..allegiant said I was looking at a refund of at least 3.5k which would have left me about 1400 after I paid them and my balance off …be lucky now to get at least 350 pound if that’s the 10 PC they are talking about and that will come off my balance likely …..and by the time its all settled I will probably have paid them off anyway

        • Sara (Debt Camel) says

          that is the reason to stop paying them now…

          But the redress they calculate will be used to pay off your balance in full – the “10%” part is only done on the cash refund bit.

  17. Alby says

    Is it unreasonable to tell satusuma that you think you were given your loads unfairly but if they removed the negative info from your credit file you will be happy with that and wouldn’t file an official complaint to receive a refund aswell? Is that even aloud? All I want is the negative marks removed I was 100 % given all my loans wrongly

    • Sara (Debt Camel) says

      You can try but I don’t think at the moment they will be considering this sort of thing.

    • KateF says

      I’m in exactly the same boat, I’d happily leave this as a closed matter if they removed the default I now have – they didn’t even notify me that it was going to default!
      I’ve complained but I’m not holding out much hope now this scheme is looking likely…

        • Amanda A says

          ladies i tried this over a late payment and said i would accept negative removed and no comp, they said no it cant be that way and its all in to the scheme. so i laughed and said u know loads ive heard are saying no to the scheme and she said that wouldnt be fair as no one would get any money back, the ones that need it x

          • Sara (Debt Camel) says

            So you too may be better in administration if all you want is your credit record cleared.

  18. Sylvia Mills says

    I had a provident loan for many years with people coming to my door to collect money wasnt really questioned about affordability and i wasnt working but was willing giving loans on several occasions

    • Sara (Debt Camel) says

      Then if this Scheme gets going, you can put in a claim. You will only get back a tiny amount, but you may as well.

      If you think it’s unfair being offered so little, you can register a protest by voting against. If you are outvoted, and the Scheme goes through, you will still be able to make a claim.

    • Amie says

      June 2020. It has taken a while to get to this point. The cheque is now paid in the bank and it should be cleared by tomorrow then it’s all over thankfully

      • Cj says

        So no cheque yet.. was hoping to get today but nooooo……soo close yet feel so far ..until it gets here

        Only got breakdown last friday. On my letter though it stated it had calculated Interest until the 9th. So I’m now thinking that’s why I havent got it yet…though I’ve had several calls from them chasing me for money as I had bal if 305 left which I had to explain had written off. They apologised for ringing but couldnt tell me if cheque had been sent 😓

  20. Richard Pearson says

    I have just received a letter from Provident saying their records show I had loans with Provident/Greenwoods between 6th April 2007 and 17th December 2020. I had previously written in 2020 with a SAR requesting detais of my loans but the denied knowing anything about my loans. I suppose I can now lodge compaims with the ICO.

    • Sara (Debt Camel) says

      You won’t get any compensation from the ICO for this. Your claim will now go into Provident’s Scheme I am afraid.

  21. Wb says

    My complaint has been with an adjudicator for a few months now, he’s been waiting for one final bit of information he’s requested. He’s had everything else but he asked for extra.
    After keeping on to him to find out what’s going on, before the scheme news. To then finally be told they won’t take it further until they know the outcome of the scheme. I find it terrible they won’t continue when everything is pretty much in place to look at my complaint. I’m not happy with the way the adjudicator handle it as he didn’t seem to keep on at satsuma for this extra information. Is there anything I can do to push this complaint on?

    • Sara (Debt Camel) says

      No. Not unless FOS is giving your case priority because you are vulnerable.

      How many loans did you have from Satsuma? How large? Do you still owe a balance?

      • Wb says

        I had 7 loans in total. And yea still owe a large sum. If the majority of the loans were to be deemed irresponsible like I think they would have been then I’d actually have a redress in cash aswell as my balance being clear. Is there anyway I can email to ask? I was getting frustrated with the adjudicator as he didn’t seem to push hard enough for this extra information he did request! Thanks

    • Sara (Debt Camel) says

      Do you know how much interest you paid on the the previous loans? And the current loan, how much did you borrow and how much did your repay?

      • Wb says

        My current loan was £2000 borrowed. £4000 to repay. Current balance is £3100.
        Interest on the other loans that have already been repaid is about £1700.

        • Sara (Debt Camel) says

          If only the last loan is upheld, you have paid £900 so far (4000-3100), so there would be a balance of £1100 still to pay when interest is removed. If all the other loans are upheld they should clear that balance and you would get 600 back.

          But the first few loans don’t tend to be upheld. At a guess you would either get a small refund (which would then be reduced as you only get 10% of that) or owe a small balance. At least the default on the credit record would be removed.

          In administration exactly the same except the very small cash refund wouldn’t exist.

          There is no way you can push this forward.

          • Wb says

            Ok I’ll wait and see what happens next. I’ve emailed the FOS to say I wasn’t impressed at the speed the adjudicator was taking to push satsuma for the requested information prior to the scheme email being sent out.

  22. M GWATKIN says

    Vote No. The bosses of these sharks should spend time behind bars, taking advantage of the vulnerable and those with mental health issues. I thought that a person with poor mental health would need another present to help them.This never happened.

  23. Craig says

    They are a bunch of crooks that are delaying people’s payments that they are due.

    Everyone vote No this month….Put them into administration

  24. 0055305 says

    Hi Sarah, my mother and father (now deceased) have both received the letter from Provident about the proposed scheme.
    If scheme went ahead and my mom decided to make a claim (in her own right), is she able to claim as NOK in relation to my deceased father also? (He had no Will & had no estate/savings at all when he died)?

    • Sara (Debt Camel) says

      Yes I think so. I don’t know how difficult Provident will make this process but it should be possible.

      But she may need to get a Letter of Administration before Provident will talk to her. To get that there is a form to be completed which lists the assets of the estate, which includes this Provident refund. This is a bit circular, how do you complete the form unless Provident will help.

      Also there is a charge to apply for a Letter of Administration. So she will need to consider the cost of that given she may only get back 10% (or even less! I think it may be less than 5%). And she should think twice about paying a solicitor to help.

  25. tom says

    It’s a very good deal for provident. The £50m they’re setting aside is probably no more than they would have expected to pay out in the next 6-12 months without the scheme. Last 6 months of 2020 had 10,000 FOS claims, at £500 a pop that’s £5m already without any actual redress and wages costed in. If their former competitors like Wonga, Moneyshop group, quickquid etc. entered similar schemes early they would have survived, Provident is going to make a lot of profit from 2022 onwards when they have a near monopoly in the short term loan market.

  26. Cj says

    So had to ring them this morning as keep getting phone calls chasing me for money. I received my breakdown letter 26th march stating account was written off as well as the amount of refund. Once again they have apologised and said was a mistake….fingers crossed chq arrives soon and then can put whole thing to bed

    • Cj says

      Update..post arrived after 4pm ..now have in my hand my cheque .will be off to bank tomorrow and in a couple days this will be done..this website has been an absolute godsend and has helped me thank you Sarah. I wish everyone all the best

  27. Tony says

    Recieved letter out of blue for a substantial amount as must have been dealt with obudsman but obudsman said because I cashed first cheque they could no longer deal with so am over the moon just waiting for cheque

    • Simon says

      Wow that’s good. I didn’t cash my cheque and now the cheque is out of date and they won’t reissue it because I complained to Ombudsman. So well done for getting a second amount!

  28. Margaret says

    I received email from Provident stating sorry they had not been able to resolve my complaint and detailing their scheme. However I have the right to refer complaint to FOS within six months!!

    • Jo says

      Yes I’ve had the same,however I’ve heard FOS are not taking on anymore provident claims,because of the possible arrangement being approved.😪

      • Margaret says

        Why would Provident even think about advising people that this is something they can do if unhappy. Just shows what an uncaring company they are. I for one would be happy to see them go into administration

  29. Danny says

    Satsuma gave me a loan despite the fact I had requested from them on 3 occasions that they never give me a loan again due to a gambling addiction. I did this in both writing and verbally. My case is nearing the end stages with the ombudsman, but I have received this email from provident bundling me in with unafordability claims. My problem was not the loan was unaffordable but the ethical fact my addiction and vulnerable position at the time was exploited despite my many attempts to prevent this happening. Does anybody have any insights as to where I now stand with this new scheme? Thanks

    • Sara (Debt Camel) says

      I assume the ombudsman hasn’t told you they are continuing with the claim?

      In that case, you will have to put in a claim either to the Scheme (if this is approved) or to the administrators (if the Scheme is rejected.)

      How large was the loan? How much have you paid to it so far?

  30. Liza says

    Hi Sara. I made a complaint to provident myself in February. I asked for a full breakdown of all the loans I have had with them. I was unaware about the scheme, I still have not had my information sent to me, but now I have received a email about the scheme. As I had already started the complaint before the scheme started can I still go ahead with my complaint without entering into the scheme?

    • Sara (Debt Camel) says

      No, Provident will not reply to your complaint and the Ombudsman won’t take a new complaint about Provident.
      Do you still owe them any money?

    • Liza says

      The only thing I owe is some interest payment which I told them I can’t afford at the moment. So even tho I put in my complaint in February I still have to go through the scheme?. My friend put her complaint in in January and they made her a offer. I don’t know if I can still just go ahead with my complaint?

      Forgot to say when I put my first complaint in they did reply and said they will look to resolve it

      • Sara (Debt Camel) says

        even tho I put in my complaint in February I still have to go through the scheme?.
        Yes, Provident won’t now consider your complaint. 😠

        I am sorry to say you are one of the big losers here. Your friend got their full refund, now you are likely to get a tiny amount. Provident used 10% as an illustration – I think it’s like to be much less, only 2% possibly.

        It’s good that you have stopped pay because at least the remaining debt should be written off in full, and the negative mark removed from your credit record. That will probably be worth more to you than the very small amount of cash you could get in the Scheme.

        This – the write off and the credit record clean up – would also happen if the Scheme is rejected and they go into administration.

        The Provident group that owns the company that does the doorstep lending is actually profit, not short of money, they own the Vanquis credit card. They could afford to pay full refunds if they wanted… they are proposing the Scheme to rip off the customers and save their shareholders a lot of money.

        There will probably be a vote on this scheme in a few weeks – some people here are so outraged by what Provident is doing that they intend to vote No, preferring the company to go bust than get away with this.

    • Liza says

      Thank you Sara for your message . Yes it’s so wrong that people are being treated this way. Can I just ask if the scheme is rejected will they then have to pay people?. Chances are tho it will be accepted. Very unfair. I personally think that if they own other things like vanquis that funds to pay people should come from that.

      • Sara (Debt Camel) says

        Can I just ask if the scheme is rejected will they then have to pay people?
        It isn’t that simple.
        Provident say that if the Scheme is rejected they will put that subsidiary into administration and people would get nothing. But a lot of other options are possible because Provident has the money to do whatever it wants here – so it could significantly approve the scheme and have another go.

        • Liza says

          Thank you for your comment. Very crafty of them . Be nice for once for the courts to tell them just to pay everyone they owe, or make them put a lot more in the opt.

  31. Alison says

    I have been helping my mother with a complaint. Her comments when I told her about this were unprintable! For more than 15 years she has been paying these leaches, paying a loan leaves her unable to put a little bit aside so then anything means she felt she had to take another loan oh so kindly offered by her agent who knew she was too ill to work and then on a small pension. She’s going to vote against this and hope they never again fleece ordinary people to make their shareholders rich.

  32. Michelle says

    I put a claim in for over 20 loans being sold to me wrongly in October 2020. Provident could not answer my claims in 8 weeks so advised me to take my complaint to the FOS. I did this in the New Year 2021. Up to 26 March 2021, the FOS did very little. I supplied all information they requested, and proceeded nowhere. The FOS had my complaint for 12 weeks but it didn’t not seem to progress. Meantime Provident announced that they were going for a Scheme of Arrangement. When I emailed the FOS about my complaint they said it would not progress further because of the Scheme of Arrangement. So now if my loans are found to be unaffordable I would only get a tiny percentage of redress. The total length of time of my complaint at that point was 22 weeks. Absolutely disgusting !!. To say I’m bitter is an understatement. If I was to owe these companies any money they are quick enough to pursue me. I paid all the loans off but struggled to do so.
    If Provident are allowed to continue trading after the Scheme of Arrangement, then they can afford to pay what they owe. Vanquis and Moneybarn continue to make money, so why not use some of their profits to pay ripped off, deserving clients !!.

    • Andy says

      Hello,

      I totally agree with the poor service from FOS, I’m in the same boat as above and at a financial loss – I have found that the FOS agreed service agreement is 40 working days to deal with complaints which they have failed – I understand covid however they have been working from home.

      I feel a higher complaint needs to be submitted to FOS about the service. I would really like Martin Lewis to cover it, The management need to be replaced!

      • Issy says

        I also agree they had my case for over 5 months , had all information from provident I was waiting for someone to pick my case up , surely these cases should still be looked at rather than fall into this scheme of arrangement and get hardly any money back , I’m voting no anyway in the scheme I’d rather have zero than the pittance we all will get if they get their scheme of arrangement!!

      • Sara (Debt Camel) says

        I sympathise but the real problem here is not FOS but the Financial Conduct Authority.

  33. Liza says

    I think the courts need to look at how much provident have and if they are in a situation to repay back there customers, then the court should say they can afford to repay what’s owed. If they go under after they have repaired that’s their problem. They didn’t care if people could afford to pay back the loans they shouldn’t be allowed to take a easy way out

    • Sara (Debt Camel) says

      What Provident is proposing to do is not illegal. Shameful yes, unethical yes, showing contempt for its customers yes. But not illegal and the courts won’t reject this scheme UNLESS customers vote against it.

      The voting can’t start until after the first court hearing, but no one should expect that court hearing to reject the Scheme.

  34. Loopslou says

    I’ve been chasing the FOS for an update on my complaint since Christmas and nobody came back to me despite promises my case handler would be in contact, just received an email advising that they won’t be taking my complaint any further until a decision as been made on the scheme, if the scheme is accepted then my complaint will be handled that way. Absolutely gutted as I reckon I’m due about £22k. Can’t believe the FOS is ditching me at this stage considering I sent my complaint on to them back in October last year

    • Sara (Debt Camel) says

      FOS doesn’t really have much choice – Provident have said they won’t accept new FOS decisions, so what is the point in FOS working on them?

      But this Scheme is dreadful news for you and the other customers Provident has taken advantage of for so long. Now they want to be able to pay you very little – that have used 10% as an illustration, I think it may be less than 2%. And not because they have no money but because they think their shareholders are more important than their customers are.

  35. MR says

    How come no one is actually asking the question of how all this can happen in the first place? Companies and organisations who’s business plan is to offer high interest credit to people with bad credit. It does not take a genius to know that a high percentage of people with bad credit will be vulnerable and desperate. Yet these companies operated for years, without anyone in the financial authorities batting an eyelid – They should have been regulated and inspected. And who wrote these laws to protect companies like this – it stinks! The laws need changing to protect people in future.

    • Shane says

      I have and I have wrote to the ceo of FCA ceo of FOS, MP, media and none of they give a dam to be quite Frank it stinks and it’s the biggest divide in the country forget race, religion the biggest divide is the poor and rich and it’s getting bigger year in year out, the corruption is also scandalous

      • Andy says

        Hello, I was thinking of writing to my MP and media also – I think if more people get on board they would listen. Anybody any feedback?

        • Staci says

          I wrote to my local mp n said shes passed it on but no update yet
          I got a letter from her
          So maybes if everyone does?

  36. Shane says

    A protest outside head quarters would be best but would need a large gathering to get media there

    • Craig says

      The whole Company needs to be closed down. Vote NO after the 15th April 2021.
      Leeches the lot of them.

  37. Lisa says

    Sara, I have an outstanding debt with Lowell via provident. Do you recommend cancelling or continuing paying this?

    At present it is on hold.

    Lisa

    • Sara (Debt Camel) says

      I suggest leaving it on hold until your claim is decided in the Scheme (if that goes ahead) or in administration (if it doesn’t). every £50 you pay to this now, you may only get £1-£5 back in a refund.

  38. Paul says

    Hi,I received a cheque off provident in January but was advised to reject it which I did.I’ve now had an email to say things have changed and I should cash it.do you think I will still be payed out even though my case is with f o m?

    • Sara (Debt Camel) says

      The advice to cash the cheque comes from a claims company?

      It sounds good advice. If you don’t cash it, then when Provident assesses your complaint in the Scheme, you will only be paid about 10% (they say – I think it may be a lot less) of your true refund.
      If you do cash it, Provident will still assess your claim, they will just deduct the cheque value from the number they end up with. then you will get that small percentage of what is left.

      • Paul says

        Yes from a a claims company.I was just worried that because I haven’t cashed it yet and I let it go with fom that they would not pay me out.I’ve put the cheque in just hoping it clears tomorrow.it’s absolutely shocking provident is doing this to people they have conned thousands out of.I never want to see a company go under but I hope they do

  39. C says

    My complaint with Provident wasn’t resolved due to the scheme they are proposing happening within the 8 weeks of investigating my complaint. I’ve had all the emails off them saying about the scheme etc and saying I can refer my complaint to the FOS. I know FOS aren’t looking at Provident claims at the moment but do I need to send the complaint to them anyway in case Provident reject my complaint further down the line? Thanks

    • Sara (Debt Camel) says

      FOS won’t take a new complaint about Provident.
      If the Scheme goes ahead and Provident rejects your claim, you won’t be able to go to FOS about then or later on.
      Do you still owe a balance on the last loan Tp provident or to a debt collector?

      • C says

        It was sold to a debt collector many years ago. I pay a small amount off each month. I owe about £500 on it.
        I only had the one loan from them. I had lots of payday loans, guarantor loans, was at the end of my overdraft limit, was on a dmp when I took out the loan and had a few defaults on my credit file. My husband borrowed £500 from them and within the same week I borrowed £500. We both defaulted on the provident loans very quickly. I’m paying £3.50 a month to the debt collector.

    • Sara (Debt Camel) says

      One loan cases are hard to win. But in your situation where the same agent presumably gave you and your husband £500 within a week, I think you have a good case.

      If your claim was upheld in the Scheme, the interest would be removed from the debt so you only repay what you borrowed. If you have paid over £500 , then you would get a tiny bit back of the extra you have paid – Provident has used 10% as an illustration but I think it will be much less than that. For you getting the balance reduced/cleared if much more important than any tiny amount of cash back.

      Exactly the same would happen if the Scheme doesn’t go ahead except there would be no cash refund, just a balance reduction.

      Will Provident think you have a good case in the Scheme? I think that is very uncertain. Provident’s “10%” figure suggests to me that they may be rejecting a lot of good complaints.

      So it is possible you and your husband may be better off if the Scheme fails and Provident go into administration, where the administrators normally try to make decisions in a simlare way to the ombudsman.

  40. Rachel says

    Hi Sara,

    Is satsuma classed as a payday loan on your credit file? It says on their website it is not a payday but a short term loan?
    Thank you
    Rach

    • Sara (Debt Camel) says

      You can check your credit records, but it probably will be unless your loan term was over a year.

  41. Manxcat says

    HI Sara

    I started my claim with Provident in July. My claim against Provident was rejected in December., but I had referred it to the FOS in Oct/Nov. the FOS contacted me and asked for documents etc which I sent in before Xmas. I got an email from the FOS in Jan/Feb saying it still hadn’t been picked up.

    My question is, if Provident get the go ahead to proceed with the scheme and my case goes back to Provident. will they take a second look at it, or will it be dismissed completely? I know the chances of getting anything back are very slim, but I thought it may be worth asking.

    Thank you.

      • Liz says

        Same amount of time as me and sitting with Provident for months before FOS and I’m now in the same boat as Manxcat but I cannot see that provident will uphold it a second time around if they rejected it in the first place. I am 2.5 yrs into my IVA so if Provident go into administration what happens to my debt?

        • Sara (Debt Camel) says

          In Administration you can make a claim to the administrators. If you win it, any balance would be reduced or wiped and any negative marks removed from your credit record. But there won’t be a cash refund.

          In the Provident Scheme the same happens except there could be a tiny cash refund, which would be paid to your IVA firm. This payment to your IVA firm will not reduce the amount you pay to your IVA or make it complete quicker except for the very small number of people who will be repaying all their debts plus IVA fees in full in their IVA.

  42. eck loran says

    i recieved a e-mail this morning 23/4/2021 another sorry for the delay we will have this sorted in 28 days for the fourth time and i see the court is letting it go to the vote for the scheme so its our turn to put them in the gutter as they did with us vote no

  43. Louise says

    Hiya I sent my claim to ombudsman any idea how long that takes or will it take up u till next year when e its all gone thru the schem I did apply for all this last year then it got sent off January then had the email telling me what happened

    • Sara (Debt Camel) says

      The ombudsman has stopped working on Provident cases. When the Scheme goes ahead, they will all be returned to Provident to decide. SDid provident ever respond to your complaint?

  44. Justin says

    I am fortunately not personally involved in this particular issue with regard to Provident ‘Letter of concerns in relation to Provident’s proposed scheme of arrangement’
    Yet again the Financial Conduct Authority prescribes ‘waffle’ in its letter but proposes to take no hard and fast action on these Schemes of Arrangement. They had an opportunity with Amigo Loans to kill such activities dead, but clearly failed to do so, and yet again what seems to be like a revolving Eastenders omnibus episode here, failed to ACTUALLY REGULATE. Hence the floodgates have opened for Provident, and all the costs and money the end consumers are going to miss out on through too many people having fingers in the pot (administrators, the scheme of arrangement itself, courts etc etc etc). It is about time this Regulator did its job it was supplied to do and REGULATE. Why does the FCA continue to act as if they are stakeholders in these cases instead of the REGULATOR? It ultimately has powers to unlicence Provident so it should be the FCA calling the shots here….and no one else. They should enforce capital restrictions on Provident to distribute money to consumers owed it and enforce them to use money from the other profitable elements of the other businesses to fulfil this, which I add they also REGULATE.

  45. Adrian says

    Hi Sarah ,

    Any advice I’ve 2 satsuma loans which satsuma won’t default and instead are marking as missed payments each month .

    They last received a payment in 2018.

    I’ve complained but as usual it’s a whitewash answer “we’ve done nothing wrong”.

    Can I refer this to the ombudsman still or am I just screwed?

    • Sara (Debt Camel) says

      Were these loans affordable? If you make an affordability complaint to provident when the Scheme goes ahread or to the administrators if it doesn’t, then the missed payments will be removed if your claim is upheld?

      • Adrian Evans says

        I will do when the scheme opens .

        I’ve 6 months to refer to the ombudsman for the default not happening but unsure whether they’d look at this meanwhile it sits there showing missed payments month after month for ever…….

        Its very sneaky for provident to do this.

  46. Robert Liddell says

    Sara just seen report in FT that suggests Provident are closing does this mean they will shut down and not go ahead with the scheme?

    • Sara (Debt Camel) says

      The report is here https://www.ft.com/content/c42c14de-883d-417c-a696-fd786c9246fa – sorry that is behind a paywall so most people won’t be able to read it. But it was based on a report in the Mail here https://www.thisismoney.co.uk/money/markets/article-9532589/Loan-shark-route-borrowers-Provident-ends-doorstep-loans.html.

      There is nothing that suggests the Scheme will not go ahead.

      I don’t think there is actually anything new in either report. PFG (the parent company that owns the Provident doorstep lending, Vanquis and Moneybarn subsidiaries) is not going under. In its announcement of the Scheme in March, PFG said:

      “As part of the operational review, the Group is working on a new customer proposition, which will allow it to serve a broader cohort of customers. It will take into account the most recent sector regulation, as well as the recently published Woolard Review, and will reflect the Group’s purpose and commitment to sustainable lending. Further details of this, as well as the conclusions of the operational review, will be provided with the Group’s 2020 results in May.”

      They have never suggested that doorstep lending is likely to continue and if the conclusion of this review is that it won’t, that can hardly come as a surprise except to some journalists that haven’t been paying much attention to the bad credit sector.

      • Gareth says

        Just a quick question regarding this scheme, the whole point of the scheme in the 1st place was to stop it going into administration correct? So my question is if they are going to close it anyway why are people being asked to vote the scheme through when they are closing the provident brand. The scheme is moot because they are copping out of the negligent practices and they are going to be allowed to do this.

        • Sara (Debt Camel) says

          Perhaps they think the Scheme looks better as customers omers get something? Even though it is insultingly little? They can say – “look the customers voted for this so that’s all right”?

  47. Joanne says

    My claim went to provident January this year.They have now told me I will be automatically put into the scheme if it goes ahead. Latest email is requesting I start gathering evidence,any ccj’s defaults on my credit file,any health issues during this time.So to me they are presuming its going ahead and they really dont think its going to be voted against.I will vote no,like so many others.I really hope it dont go ahead,and they have to go into administration.

    • Sara (Debt Camel) says

      It is ominous that they are asking people to gather information. For many older loans, people won’t have this info and won’t be able to get it… but they are still winning cases at the ombudsman when they borrowed from provident continuously for your… perhaps provident intends to reject a lot of these good but old cases.

      • Joanne says

        I had total of 17 loans from 2007-2018.All paid up,but they was continual and the agent used to message me asking if I wanted more even tho I skipped weeks and had to pay double following week.I was struggling.I wish I’d put my claim in sooner,looks like I won’t get anything back even tho they say I won’t have to apply as it will automatically go to the scheme.They talk like it’s already happened

  48. Thomas says

    I have one satsuma loan outstanding which I am paying Moorcroft £5 per month. I owe approximately £130. I am being treated for depression which they are aware of when they set up the payment plan, I am still making the payment each month is that correct ?

    • Sara (Debt Camel) says

      How much did you borrow?
      Did you have previous loans from them?
      Is this your only problem debt or are there others you aren’t paying or where you have a payment arrangement?

      • thomas says

        This loan was £200 I think I had a couple of loans prior, I have arrangments to pay through Lowell other debts with cap one, vanquis, ee, very and littlewoods

      • Sara (Debt Camel) says

        ok, can you say how much the other debts add up to and what you are paying to them in total?
        Also how old are the other debts and are the repayments really affordable for you?

        • thomas says

          I would say they are about £3000 altogether, I pay £55 per month between them all which is what i can afford based on my current situation. All the debts are within the last 6 years. Thank you

    • Sara (Debt Camel) says

      So a £200 loan with a couple of loans before hand is not a strong affordability complaint. If the proposed Scheme goes ahead, you can make a claim but it may be rejected.

      If the £5 payments are affordable, the easiest thing is probably to just let them continue. If you owed more overall, it might be a good idea to look at a Debt Relief Order for all your debts – if things get tight so you can’t pay as much or if other debts crop up you should talk to a debt adviser about a DRO.

  49. Sean says

    Good morning, how do i go about putting a complaint in for provident lending to me irresponsibly, at one point i was paying £210 every 4 weeks as they just kept giving me loans so it was easy in that regards,

    I complained via the scheme but it seems from reading comments there is an easier route?

    Sorry for the questions, sadly i have mental health problems so attention span through reading isnt a strong point of mine, but any help would be appreciated thank you

    • Sara (Debt Camel) says

      Do you still owe them any money?

      There is no easier way any more to complain. Complaints can no longer be sent to the Ombudsman.

      You can’t have sent in a complaint to the Scheme as it is not yet in operation.
      If the Scheme is approved, you will be able to claim from August.

      If your claim is upheld you will then get a tiny amount back in mid 2022. Provident say possibly 10%, I think it may be less than 2% of the amount you should have got for a complaint to the Ombudsman.

  50. Darren Mallinson says

    I’m going to vote no to the proposed scheme and hope to force them into administration.

    However, Provident Financial Group will still get away with it. They’ve put Provident Personal Credit and Satsuma into a subsidiary, if this goes into administration it’s not going to affect the remainder of the group (Vanquis and Moneybarn).

    Vanquis have launched a new ‘Vanquis Loans’ product, which seems to have gone live in the last month or two. The cynic in me thinks they’re expecting the scheme to be heavily voted against, meaning the home loans division goes into administration, and simply re-launching the same product under a different brand.

  51. Staci says

    Im considering voting yes as their going to stay open either way whether it be on their sister company if go into administration or not then atleast u get something . Also ive found when things go into admistration its alot harder to win your claims administrators dont want to touch it or admit it then ombudsman wont touch it

    • Sara (Debt Camel) says

      They are VERY likely to close doorstep lending whatever happens. There may be an announcement about this next week. But Provident want the Scheme so they can carry on in business and produce new lending products.

      Administrators normally make decisions roughly in line with what the Ombudsman would. Provident has said it expects people may get paid 10% of their proper complaint compensation – but that figure can’t be right unless they are planning on rejecting a lot of very good complaints, I think the £50million they are allocating will only be less than 2% of the amount the Ombudsman might have decided.

    • eck loran says

      thats your choice the shareholders will still walk away with there 7 million bonus while you recieve your 2% of your claim if your claim is 1000 enjoy your 20 quid so either way you prob get pennies voting yes lets them win good luck

  52. Christian says

    Had 7 loans with Satsuma from March 2018 to August 2020 (last repayment) for a total £6,950 borrowed and over £3500 paid in interests.
    During that time I had several other loans with many other providers due to gambling addiction and struggle with repayments/bills/living costs.
    I defaulted on a Loans2go loan on august 2018.
    Lately I managed to fight the gambling addiction and pay off everything without significant delays.
    I filed an affordability complaint with Satsuma in June 2020 and received a response in July 2020 in which my case was not upheld.
    Unfortunately I only reported to the FOS in December and was asked to provide the relevant documents in January.
    Since then nothing until a few days ago when, asking for information, I was told that they would not proceed any further.
    I will definitely vote NO to the scheme!

  53. Cm says

    Hi Sara, After not managing to get anywhere with provident adding a default date back in 2014, I have started making payments against this loan but they are still marking it as a missed payment monthly even though the balance is coming down? The payment are been made to Moorcroft but the debt still says provident. Is this correct what they are doing?

    • Sara (Debt Camel) says

      Sorry, remind me, how long a period was there when you weren’t making any payments at all?

      • Cm says

        6 years but they refuse to add a default as they said I have made ad hoc payments which is false no payments have been made against it till now but due to the scheme/administration I’ve got no where to go

    • Cm says

      No, they just said as payments have been made I asked for details of this but they said that this was there final response

  54. Leanne says

    I have a complaint in with the ombudsman about sunny and provident. You mention in the information above that no further interest should be added once a payment plan is agreed. But provident historically front loaded interest so although I’m paying a small amount each month i still owe over £1100 on a £600 loan, is that right?

    • Sara (Debt Camel) says

      yes, Provident don’t add on any more interest or charge because you are increasing the term of your loan.

      How many loans from Provident did you have before this one?

  55. Wayne says

    Hello, i got a loan out in 2018 with Satsuma for £1000 i was in a bad place with debit and should have never been lent it at the time. I paid a couple of payments then stopped. According to my credit file i still owe £1660. They have never sent any letters or email chasing this and mark my credit file with just late payments. What should i do? I have no agreement number or any info as was nearly 3 years ago

    • Sara (Debt Camel) says

      ok, then if the Scheme goes ahead, you can make an affordability complaint to Provident. If it doesn’t you can make a complaint to the administrators.

      In either case if you win the complaint your debt will be reduced so you only have to repay what you borrowed. As that will still be quite a bit, you may want to start making affordable monthly payments to it now?

      Also you really want a default added back in early 2019 – this will mean it drops off your credit record in 2025. If you don’t do this it will stay for 6 years after the debt is finally settled, which would be a lot longer.
      If your win the affordability claim, the negative mark on your credit record will be removed?

      • Wayne says

        I’ve just rang them up and spoke to them and made 2 complaints, one that my account should have been defaulted back in feb 2019 and that i should have never been given it due to other debts with checks not being made properly and two about no information being passed to me regarding missed payments. The lady on the phone said that it goes to a debt collector and if they don’t hear anything it goes back to them but then they don’t contact the customer to tell them this? Sounds abit fishy as i’ve had no debt collectors getting in touch with me regarding this debt.

        She said they’ve got 56 days to respond to me before i can take it up with the financial ombudsman, and also what would i like the outcome to be. Well i said one i’d like the default to go on my account from when it was supposed to and then which ever way the scheme goes it happens or doesn’t then I’ll discuss repayments and she seemed happy with that didnt ask for any payments.

  56. Michelle Hay says

    I’ve just spoken to the FOS who have confirmed that any complaints not yet with an adjudicator are on hold until the outcome of the scheme. If the scheme is not approved then provident will go into administration and they will not be able to pursue any complaints. If the scheme is agreed and accept then it will go to a portal.

Recent articles

Help with your debts

Recommended places for debt advice

Get an email after a new article:

Regular updates on Instagram

About Debt Camel

This is the personal website of Sara Williams.

More about Debt Camel.
Privacy policy and Comments Policy
Contact (not for debt advice)