UPDATE – the Scheme has now been approved by the court.
See Provident Scheme – 4 million people can now claim a refund
for how to make a claim and what will happen in the Scheme.
Provident Financial Group (PFG proposed a Scheme of Arrangement to reduce the refunds it has to pay to customers given unaffordable loans through its Provident Personal Credit (PPC) subsidiary.
There are three stages in getting a Scheme approved. Provident is now in the third stage – seeking court approval:
- On 22 April 2021, the voting arrangements for the Scheme were approved by the court.
- From 17 May to 19 July, customers could vote to approve or reject the Scheme. A large majority approved the Scheme.
On 14 July, the FCA published its second letter of concerns about the Scheme. The FCA says the Scheme went against its principles but as the alternative is insolvency and the doorstep lending business is being closed, the FCA will not oppose the Scheme in court. - On 30 July, a second court hearing was held to decide whether the Scheme should go ahead. The judgment will be published next week, probably on 4 August.
My previous article Provident proposes a Scheme to cap refunds gave the background to the Scheme – the increasing numbers of affordability complaints, the changing legal and regulatory environment, as well as the pandemic.
An overview of the Scheme
4.3 million customers affected
PFG has operated Provident Home Credit, Greenwood Home Credit, Satsuma payday lending and Glo guarantor lending through its PPC subsidiary. PFG is closing its PPC subsidiary and no longer offers doorstep or payday loans.
The Scheme covers loans taken after April 2007 for all of these brands.
4.3 million people have had one of these loans.
The Scheme does not affect PFG’s Vanquis and Moneybarn customers. The credit card lending and car finance operations are profitable and go through a different subsidiary so PFG is not including them in the Scheme.
How the Scheme will work
The Scheme will cap the refunds PFG has to pay to Provident customers.
Many people have been making complaints the loans were unaffordable and winning these complaints at the Finacial Ombudsman.
Provident is proposing to put aside £50 million to divide between the people who have claims for unaffordable loans upheld in the Scheme. This is a LOT less than the “real” refunds people should get.
Provident has given an example suggesting people may get paid 10% of their proper refund. But my numbers suggest that is too optimistic and the refunds may be a lot lower, see below for details.
If the Scheme is not approved, PFG says its PPC subsidiary which operates the Provident doorstep lending and Satsuma brands will go into administration.
In administration customers can also make a claim for unaffordable lending:
- there would be no cash refunds for customers;
- customers with upheld Claims who have a current loan would have their balances reduced or cleared through the “right of set-off”.
If you would like to read the documents for the Scheme, the Practice Statement Letter (PSL) summarises the proposed Scheme and the Explanatory Statement gives more details.
The Scheme Timetable
17 May – 19 July – Voting on the Scheme
Over 428,000 of the approximately 4.2m creditors affected by the Scheme voted , approximately 420,000 voted in favour of the Scheme, while approximately 7,500 voted against.
30 July – Second Court Hearing
This considered the results of the voting and the fairness of the proposed Scheme. The FCA did not oppose the Scheme in court. It was decided the Scheme should go ahead.
August 2021 – February 2022
If the Scheme is approved at the Second Court Hearing it will start.
People who voted on the Scheme will automatically have had a Claim submitted. People who didn’t vote will be to submit a claim on an online page for six months.
First half 2022
Provident expects payments to be made. I think it may be late in that period as Provident will have to allow time for appeals to be made and reviewed.
What customers might get from the Scheme
See Provident Scheme – 4 million people can now claim a refund which looks at how the Scheme will work.
We don’t know in detail how Provident will make a decision about which loans are unaffordable. But that is not a reason to not make a claim!
Is this Scheme fair?
If £50 million was genuinely all the money there was available, then you may think “Well that’s life, that’s all there is”.
But it isn’t!
PFG is not a company that is running out of money. Its Vanquis and Moneybarn operations are profitable and it is planning on expanding them.
If PFG wanted, it could delay expanding its other operations and use the money saved to pay more to the customers who should get refunds. or it could ask its shareholders to contribute money through a rights issue or a share placing.
But PFG seems more interested in its shareholders’ interests and not in giving its customers adequate compensation.
The FCA has pointed out in its letter about the Provident Scheme:
the FCA does not support the Scheme for the reasons set out in this letter and the FCA does not believe that the Scheme is the fairest compromise that could have been offered to customers with valid redress claims by the Group.
What do you think?
The comments on this article are now closed.
Please see the new article Provident Scheme – 4 million people can now claim a refund which will be kept updated throughout the Scheme.
Nicola says
Hi, I received the email to vote for the scheme but the link doesn’t work and neither does the phone number! Does it matter if I can’t vote? Will my claim still be included if the scheme goes ahead?
Chris says
On that email you have an I.d…..then do it manually via schemeprovident online
Franky says
My wife received a letter from moorcroft today about a loan she had with provident several years ago, it’s over 2 grand. Shoukd she just ignore them?
Sara (Debt Camel) says
Was that her first loan from them? Did she stop paying or did her agent stop calling?
Franky says
Wasnt her first loan. Agent just stopped calling due to covid. Borrowing For several years, loans kept rolling over.
Sara (Debt Camel) says
Ok then she probably has a good claim for unaffordable lending if the Provident scheme goes ahead or if Provident goes into administration.
How large was this last loan? Do you know how much she had paid to it so far?
Franky says
She was paying off at £40 a week, must be about 500-600 paid off. I told her not to have any contact with or pay moorcroft or provident at the minute. Am I correct?
Sara (Debt Camel) says
ok so if only this loan is upheld as being unaffordable, the balance would be reduced to what she borrowed (was that 2000? or is that the remaining balance?) less 500-600 paid off. So she would still owe a bit.
Any previous loans being upheld as unaffordable would reduce the amount she owes – possibly to zero but I can’t guess.
I think it’s best for her to make a claim – she can do this by voting on the scheme, yes or no doesn’t matter, any vote enters a claim. And then tyo tell Moorcroft that she has made a claim for unaffordable lending and would like that determined before she makes any more payments as it may clear her balance.
Not paying will harm her credit record – but the damage has already probably been done as she hasn’t been making payments. If she wins the claim the negative marks will be removed from her credit record.
Al says
Hi Sara
Can I ask your opinion on the following please:
I took out £500 with Provident last October, I pay £18 a week. So have paid back £594 and have £342 to pay. I was contacted about the scheme and replied that my loan was unaffordable.
Unfortunately, I voted yes to the scheme before discovering this site.
I have a loan with Likelyloans. £1000 24 months I’ve paid back £1443.24 and have £379.80 left to pay.
Quickquid, wonga, Sunny have all agreed my loans were unaffordable and I received very small back from them. My redress has also been agreed by Moneyshop although ive yet to receive notification of what I’ll get.
I’ve put in a complaint with likelyloans and waiting to hear back.
My question is should I stop paying Provident?
I took out loans with them years ago, so it’s only this recent one. I’ve got defaults missed payments on my report and maxed on CC & catalogues. Had they have looked at my finances properly they should never have agreed the loan. I shouldn’t have applied really but I was desperate.
I’m working hard to clear everything the wipe out of the payday loans has helped. Not paying the £18 a week to Provident and £75 monthly to Likely would really help coz I could put those payment into reducing my CCs and/or help me get through the month without having to borrow.
Sara (Debt Camel) says
Did you borrow a lot from them years ago?
Al says
I can’t remember to be honest but it would probably be about the same if not less.
Chris says
Good morning. Why have Provident sold my loan to Capquest, a debt collection company please?
Chris
Sara (Debt Camel) says
you are up to date on the loan?
Chris says
No, because I had lots of loans from them over 13/14 years which I could not pay back and had to keep taking out more loans. Then about 4 years ago I still owed a lot but instead of taking out another loan I decided to tell them I could not pay. The local area manager came to see me and after asking me lots of questions said I should never have been given the loan and reduced my payments from £56.00 a week to £5.00.
Unfortunately that lady no longer works for Provident.
Sara (Debt Camel) says
ok so your loan has been sold because Provident is closing its doorstep lending operation. You will be able to make a claim to the proposed Provident Scheme – or to the administrators if the Scheme does not go ahead and Provident go under.
If you vote on the Scheme now – the above article explains how – this will submit a claim for you. It doesn’t matter if you vote yes or no, the claim is still submitted.
If the claim is then upheld in the Scheme or administration, the debt that has been sold to Capquest will be reduced/cleared.
Pat Smith says
Hi all,
My Satsuma debt was sold to The Zinc Group and I have been paying it off monthly. I got in touch to see if there was a settlement offer available to be told that they haven’t dealt with Satsuma Loans for a fair while now and to send proof of my payments to their customer service email with the Subject Line: Satsuma Loans so they can refund those payments.
Just thought I’d share in case anybody else has been paying them thinking it was clearing their balance.
Sara (Debt Camel) says
oh! Thanks for sharing that.
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?
You answered this previously advising to request a subject access request but I have finally received a response which shows no payment has been against this loan since 2016 which were still irregular payments (upto 3 month ago when I started making payments again which is still showing missed payments) Is there anything I can do?
Thanks
Sara (Debt Camel) says
Try emailing them at informationrequests@provident.co.uk with INCORRECT DATA as the subject and say you want to object to Provident failing to correctly record a default on your credit record. Give the details of how long it was when you didn’t pay and point out the SCOR principles (see https://debtcamel.co.uk/debt-default-date/) say you understand that home credit is more flexible but this has been an unreasonably long time for no default to be added.
CSS1978 says
Interesting reading these comments about their loan being sold, I’ve got a satsuma loan that became unaffordable due to me having a number of payday loans at the time, I’ve not made a payment to them for years and I’ve never had a letter from any debit collectors, wonder if they’ve known they miss sold me this loan, think I still owe them around £700 and this was my second loan with them as well.
Sara (Debt Camel) says
how long ago was this loan? is it still showing on your credit report?
Kyle says
I have a loan with Satsuma that currently has a balance of around £1300. It was an £800 loan with a total balance of £1600, so I’ve paid off around £500. This loan was issued the very same day I paid off my previous loan that was 12 months in arrears, so I’d be gobsmacked if they don’t rule that the money was unfairly loaned to me but in truth I’m not really bothered about any redress I’m more bothered about getting it removed from my file.
I’m assuming there is no way of getting it done any sooner than letting the scheme play out?
The account is showing as just missed payment after missed payment for about 4 years, no default on the account and they don’t even chase the money it’s bizarre really. All my other credit accounts are up to date so this is making a huge difference to my score.
Sara (Debt Camel) says
I’m assuming there is no way of getting it done any sooner than letting the scheme play out?
Correct. You can also make a claim to the administrators if they go into administration. You have the same chance of getting the balance dramatically reduced and your credit record cleaned in the administration as the Scheme.
Kyle says
Brilliant thanks Sara, great website by the way helped me loads!
Paulo says
Hello, what happens if you simply ignore? Do you lose any right to a claim?
Sara (Debt Camel) says
If you don’t vote?
You can still make a claim later to the Scheme
Paula says
Hi
Where do you find your scheme ID to vote, I’ve had several email saying about the scheme and I’ll be automatically entered into it as complaint before the scheme announcement and then further email advising about the they may require details of CCJ etc if scheme is granted but no we’re does it give me a scheme ID to vote just Our reference but say format isn’t valid.
Kelly says
I never had a scheme ID either. I just gave them a call and they did it for me.
Courtney says
Please can you confirm which number you used to call them? My Mum has a valid claim for a doorstep loan, £600 has turned into £1817! But where she doesn’t have any email correspondence, she doesn’t have a scheme ID to register online!
Kelly says
Yes, the number that I rang was 0800 056 8936. Hopefully they are still taking calls!
Sam says
Hi Sara
Hope you can help. I burrowed 1200 from Satsuma in October 2019. I paid back some (200 payments) and then in March 2020 made a claim which went to the Ombudsman (unfortunately they never dealt with it in time before the scheme proposal). In the meantime I asked for a payment freeze and then started paying back £30 a month from last year until now on an agreed management plan (with Satsuma) as I did not want to lose out on money as I’d seen happen with all the other payday loan companies going bust. To date I’ve paid back £1100 which leaves £100 outstanding of the amount burrowed – they say I’ve got £1300 outstanding but that will be mainly interest. Is there anything I can do to avoid paying back the interest part of the loan, can I ask them to remove it from the loan or would that not be acceptable? I was also thinking maybe I could ask to reduce my payments to £10 a month. I think i have a good chance of winning the claim against this loan (and hopefully removing the default) as I have been successful with other payday loan companies. Please see my schedule of burrowed loans with Satsuma. Id be really grateful if you could let me know your thoughts.
Hppe that all makes sense. Please note that whilst there’s some gaps between the dates the loans were taken this was because I was paying most of them back over a few months.
Thank you very much
Sam says
Sorry here is my schedule of loans. Sorry for the long posts
6/12/2017 – £300
3/1/2018 – £650
3/3/2018 – £200
19/4/2018 – 750
24/5/2018 – £250
16/7/2018 – £500
12/9/2018 – £200
12/11/2018 – £250
29/12/2018 – £360
7/2/2019 – £700
20/5/2019 – £160
13/7/2019 – £200
October 2019 – £1200 burrowed. £1100 repaid to date. £100 outstanding of actual amount burrowed but £1300 according to Satsuma which will include all the interest.
Sara (Debt Camel) says
OK, so that loan has hit the payday loan price cap – Satsuma can’t add on any more interest or charges.
I think that looks like a good claim. I can’t be sure what will be upheld in the Scheme 9or in administration if the Scheme doesn’t go ahead) but i would be suprrised if the last loan and some of the previous ones are not upheld – which means the balance outstanding should be wiped out out and you should be owed some cash redress in the Scheme.
If that is right, then from this point on you should try to pay little or nothing to the last loan as you will only get back a tiny amount of every payments. Provident think 10%, I think it could be a lot less. Stopping paying is probably best!
Sara (Debt Camel) says
The last Satsuma loan, what was the term?
sam says
Thanks Sara it was meant to end November 2020 so a year when I took it out
Simon says
Hi Sara,
Is it possible to complain to the FCA or the FSCS about how my complaint was handled? They agreed a payout last year before announcement of the scheme but because i said i wanted to send a complaint to FOS about the loans that were not upheld I didn’t cash the cheque. Just before scheme was announced i decided to cash the cheque but it was out of date and they won’t reissue it as they say I complained to Ombusdman, despite my reply stating it was only for the loans that were not upheld and that I accepted their decision on the upheld loans. Due to length of time it took the ombudsman I missed out. Also provident were taking a long time to supply info i had asked for which also resulted in the cheque not being cashed in time, as i would have cancelled my complaint with FOS if provident replied sooner. I am looking to find out if I could get anywhere with the FCA or FSCS about this and the cheque being reissued, or if they still cannot do anything? If scheme is not approved will FOS continue assessing and if they agreed my complaint would Provident then have to look at paying the full amount due? Can FSCS or FCA enforce them to pay full amount due in those circumstances or in my current circumstances if i complained about how it was handled and that my payout has now been stopped due to the above?
Thanks,
Simon
Sara (Debt Camel) says
You can rule out the FSCS – it isn’t relevant under any circumstances as it doesn’t cover a lender’s failure. It is the FCA’s fault that the FSCS doesn’t cover this.
If the Scheme is not approved it will depend on what happens instead. It seems unlikely that FOS will restart assessing although i suppose it is theoretically possible.
I do think people whose cheques went out of date have been very badly treated by Provident. Unfortunately there seems nothing you can do about this.
Julia says
Hi,
My 78 yr old mum had 5 loans in 11 months which I feel were unaffordable so I complained to Provident in August 2019. They rejected the claim in January 2020 so I referred it to the FOS in Feb 2020. After many progress chasing calls over several months the FOS advised me in Oct 2020 that there was a delay in them initially looking at my complaint then they had difficulty in getting provident to release a copy of my mum’s file. By the time they had received it the FOS advised they could no longer continue with the claim due to the new scheme. This was more than 1 year from when I first referred it to the FOS who advised the case hadn’t even been allocated to an adjudicator. I feel that the service from the FOS was poor and had it been reviewed earlier and they upheld my mum’s claim she would have received a fair repayment. Do I have any grounds for complaint on the delay and service from the FOS?
Sara (Debt Camel) says
I understand your frustration. You can complain to FOS if you want, but I suspect it will get nowhere… FOS received more than 13,000 complaints about Provident in 2020, more than 4 times as many as in 2019 – it isn’t possible for an organisation to easily staff up to handle such massive increases. And Covid-19 slowed down complaint handling at many lenders, so they were slower to send files to FOS and to respond to FOS questions – as a result fewer cases were closed and more complaints built up as a backlog.
But really the fault lies not with FOS at all but with the FCA. 5 loans in 11 months for a pensioner (was your mum 78 at the time the loans were taken?) sounds as though the later ones should certainly have been seen as unaffordable and so Provident should (a) never have given them in the first place and (b) should not have rejected your mum’s complaint… but the FCA has tolerated lenders breaching the CONC affordability rules and ignoring the DISP complaint handling rules.
Leanne says
Hi Sara,
I had two outstanding loans with provident I’ve been paying back £10 per month, I submitted an unaffordable lending complaint over 18 months ago, and it was with the FOS when the scheme was announced, I’ve now been contacted by Moorcroft chasing the debt – do I have to respond to moorcroft – do I tel them I have a complaint pending with Provident?
Sara (Debt Camel) says
How many loans did you have from Provident before these two?
How large were these loans and how much have you paid to them so far?
Leanne says
I’ve had 4 loans in total, the last two defaulted due to a cycle of borrowing – all 4 loans taken in the space of 3 months – I’ve paid perhaps 50% of the loan amounts for loans 3 and 4 – loan values were:
Loan 1 – £200
Loan 2 – £300
Loan 3 – £250
Loan 4 – £350
Sara (Debt Camel) says
I am assuming the £10 a month is affordable. If it isn’t, you need to ask Moorcroft for a lower amount you can afford, even if that is only £1. Do you have other problem debts?
From what you have said, it seems unlikely the first couple of loans would be decided to be unaffordable. Third one possibly. Last one more likely. I am making a guess here, first because it isn’t clear how exactly Provident will make this decision in the proposed Scheme and second because it may depend on the rest of your finances. But if I am write, then having the 3rd or 4th loans upheld will reduce what you owe but probably still leave you owing some money. That is why it makes sense to carry on with the £10 payments if you can manage them so you are chipping away at the balance you will have left at the end.
Have you voted on the Scheme?
Janet says
I had a loan on 6th January 2015 which I paid off in full £248.58 on 18th April 2015.
Sara (Debt Camel) says
I am not sure why you have posted this. This is a page for discussion about the Provident Scheme.
If you want to make a claim to the Scheme you can do this by voting, for or against, it doesn’t matter which. See the article above for how to vote.
If you only had one loan it is unlikely you will get a refund from the Scheme. I can’t say it is imp[ossible, but you should probably not get your hope up.
Kath O-H says
I can’t access the portal. Message says it is blocked.
I have received a letter from provident.
Helen Shirer says
I submitted a complaint in October, end of the 12 weeks was in January but they hadn’t made a decision. Do I need to vote or will I already have a claim.
Sara (Debt Camel) says
I think they will treat you as already having made a claim. But if the Scheme goes ahead I suggest you check this.m
Rachael says
Hi I took out a loan in November 2020 and again in January as I was contacted saying I was eligible for further credit however one loan owing 200 other is £912, I have had a period of not paying as am unwell I am due to start payment again however it isn’t affordable due to my situation, also I have an IVA which is on my credit report and provident still borrowed to me other companies had declined and provident was in my IVA when took it out my IVA finishes feb 2021 so I believe they are aware of this? To be honest was never affordable
Sara (Debt Camel) says
Are you better and back to work now? Or is the break provident gave you just ending and you still can’t afford it?
Has your IVA finished?
Rachel says
I’m not working at moment and still unwell, I’m due to restart payments in July and is unaffordable, my IVA finishes is February 2021
Sara (Debt Camel) says
Feb 22?
Ar your IVA payments affordable? Are you buying or renting?
Wendy says
Hi
For the last week I have continually asked Provident to send me a scheme ID as they have not issued one to me. I received a data protection ID which was clearly not what I asked. My son has done the same. I don’t want to talk to these people over the phone. I just want the ID sent out by post. Can anyone suggest my next move? I’ve had loan after loan with Provident. I feel I have been given the run around.
Sara (Debt Camel) says
oh dear, I don’t know why some people are such difficulty. HAve you been asking them bu email?
Wendy says
Hi Sara
Yes both myself and my son. I used the SOA email which clearly states send an email for lost or replacement ID codes. Then, both myself and my son have received data protection codes.
Sara (Debt Camel) says
I suggest you email soa@provident.co.uk again with COMPLAINT as the subject and say you have been sent the wrong codes.
Wendy says
Thank you Sara. Will try this and let you know :)
Dominik says
After voiting NO, I’ve received another email. One of the sentences:
“We continue to believe that the Scheme is the only alternative to insolvency and that it is a fair Scheme in the circumstances. For this reason, you are encouraged to vote for it.
• If you have already voted you can change your vote if you wish, by filling in a Claim Form (including the voting section) and returning it so that we receive it by no later than 5.00 p.m. on 14 July 2021. This can be done…”
Mike_p says
I got that too after voting no. They took months to respond to my complaint and to send my loan details to the FOS so there is no way I’m going to change my mind.
Tyrone R says
Exactly. They let me take out 3 seperate loans all at the exact same time, yet they rejected my complaint by saying that does not count as irresponsible lending. But now I’m supposed to trust that they are going to judge the complaints correctly in this so-called scheme, no chance!
Voted No and Im not changing it.
Paulina Bojor says
Hello
I have had an unaffordable loan from Provident. The Provident sold my debt to Llowel Portfolio and they entered CCJ against me. I have not received the invitation to vote. What I can do? Would it be possible to remove CCJ once the scheme come to the end and if I submit the claim? What should I do?
Sara (Debt Camel) says
did you have other loans from Provident before this one?
Paulina Bojor says
Hi Sara,
I don’t remember to be honest but I don’t think so. I did have other loans from different companies in the same time.
Sara (Debt Camel) says
how large was this Provident loan?
Paulina Bojor says
It was £550.00 but CCJ is for 746 GBP withe breakdown below:THE SAID SUM OF £550.00 B) INTEREST PURSUANT TO S69 COUNTY COURTS ACT 1984 AT THE RATE OF 8% PER ANNUM FROM THE DATE OF ASSIGNMENT TO THE DATE OF ISSUE, ACCRUING AT A DAILY RATE OF £0.121, BUT LIMITED TO ONE YEAR, BEING £44.00 C) COSTS
Sara (Debt Camel) says
ok so you will need to make an affordability claim about this loan to the Provident Scheme. It can be hard to win one loan cases, but as it was £550 it may be possible – you will need to produce evidence about your other loans at the time, so get a copy of your credit record downloaded now and keep that so you can show it to provident. Also go back and get your bank statements for 3 months before the loan application. so you have those. If Provident rejects your claim in the Scheme thenm appeal this.
This is worth trying – what do you have to lose apart from a bit of your time? If you can get the loan decided to be unaffordable, then you can look at getting the CCJ removed.
Paulina Bojor says
Thank you. Absolutely, I would like to try but I have a few issues. 1st- I have not received an email with invitation to vote. 2nd- when I have taken the Provident loan I have had 2 bank accounts. All other loans (about 10) have been taken using my old HSBC account which is now closed and I would not be able to get a statement. At that time I have used MoneyDebtandcredit company who contacted all Loan companies on my behalf (I do have emails stating the outstanding balance) and they have suggested to open new bank account which I have done. When I have taken Provident loan I have used new bank account statement to only show my salary and of course other loans did not show there. If they would assess my credit rating properly at that time I would have never get this loan because I have had already 10 defaulted entries on my name. So my question here is, do I still have a chance to claim even without showing old HSBC bank statement proving I have had other loans, I could only produce email as stated above? All I would like to achieve here is to remove CCJ on the end.
Sara (Debt Camel) says
How long ago was this loan taken? what was the date of the CCJ?
MoneyDebtandcredit, – did you set up an IVA?
re the Money Shop/BW Legal – I have deleted that part of your comment – let’s keep that discussion on your other thread: https://debtcamel.co.uk/money-shop-to-close-two-million-customers-will-be-informed/comment-page-27/#comment-431230
Paulina says
Provident loan was taken between July- September 2012; CCJ entered on 31/10/2017 by Lowel Portfolio- the debt assigned to them in August 2014 (this is from the Court data). MoneyDebtandcredit- I have not set up IVA only the monthly payment plan which I only followed for a few months and then defaulted this too as the total amount was unaffordable plus their fee was too much.
Re BW legal- of course, will respond there. thank you
Sara (Debt Camel) says
You can make a claim without producing bank statements as evidence. I can’t tell how likely it is to be accepted.
Paulina says
thank you for the advise – will try.
Dino says
Sara
I received an email this morning regarding Provident’s scheme, voting and accessing the portal.
I was unable to log in as it stated I was not recognised. They are asking you for the Scheme Number, Email, Name and DOB.
Provident have not made this simply as previous companies have merely sent you an email and asked you to click on a link to vote.
I suspect this is a ploy by Provident to make things difficult which would result in fewer claims.
I’m sure others with have the same problems.
Kind Regards
Dino
Mike_p says
Maybe it depends on if you have registered before? I got an email from then with just a yes or no link to complain.
Dino says
Thank you.
Charlotte says
Hi Sara
I have a loan outstanding with provident thats still racking up missed payments each month on my credit report (it’s from 2017) and obviously having a detrimental effect on it,this is the only active account with missed payments,can I get them to remove this information at all or will I have to pay it off to get my credit report back in order? I’ve made a claim for unaffordable lending etc but from what I understand this won’t be sorted anytime soon,
Thanks
Sara (Debt Camel) says
How many previous loans did you have from Provident? Have you been making any payments to this?
Charlotte says
Hi sara
I had one before this one which was paid off,the outstanding one I only made 2 or 3 payments too then I was in a debt management plan with step change,in the meantime ive made affordability complaints and most of my other debts have been removed from my credit file and settlement figures agreed-I’ve got two left,this provident one and one from creditstar which again hasn’t been defaulted but I’ve got a complaint with the FOS about them
Wayne says
Hi Charlotte, I’m in the same position. They keep updating with missed payments and i haven’t paid them for years. I rang them up and made a complaint that it should of been defaulted after i missed so many payments which they agreed too and said they would rectify it. They wrote me a letter apologizing and the account should of been defaulted as i said it’s affecting my credit as you keep marking late/missed payment. They said they would default it from early 2019 when i took the loan out and would take a few months to update. I’m still waiting for them to do it! So we shall see!
Charlotte says
Hi Wayne
That’s interesting because when I rang them up they told me they never default customers accounts it will just stick on their as missed payments,which in that case will never be removed!
They have agreed to a lower settlement figure which I can pay off in instalments but then this will be marked as partially settled so I don’t know how that would effect my credit report as opposed to just starting to make the monthly repayments-if nothing else just to sort out my credit report now I’m in a better financial position
Have you heard anything back from them yet?
Shaun says
Hi i,m after some advice please . I had a claim in with the FOS for unaffordable provident loans due to the scheme this has obviously been halted . Now after voting NO , i have received a letter from provident stating my original loan agreement period has ended and they’re passing my account to Moorcroft . I had an agreement with provident to pay £5 a week . I still owe £2339.40 on the loan . This is interest on the loan as the original loan was £2040 plus interest of £2839.68 . This loan was taken out on 7/6/2019 .
Has anyone had a similar experience and also what are Moorcroft like to deal with .
I,m currently unemployed and caring for my disabled partner .
Any help and advice would be appreciated .
Sara (Debt Camel) says
Sorry quite a few questions:
Was this your first loan from Provident?
IS £5 a week really affordable? It sounds a lot if you are out of work.
Can I ask if you have other problem debts as well or are you behind with any bills?
Doe your partner get disability benefits?
Are you buying or renting?
Shaun says
Hi Sara not my 1st loan i have had 7 loans all in 2017-2019 .
No its not affordable and i only paid when i could or was hassled by agent .
Yes i have an outstanding Vanquish debt .
Yes partner has full enhanced PIP
Renting private .
Sara (Debt Camel) says
It sounds as though you probably have a good claim for unaffordable lending them. You can put in this claim by voting on the Provident Scheme as the article above explains. It doesn’t matter if you vote Yes or No to the Scheme, it still submits a claim.
As you owe them so much money you will still have a good claim if the Scheme doesn’t go ahead, as you can still get a “set off” of the amount they owe you for a refund on the previous loans against the curren balance you owe them.
I suggest you tell Moorcroft that you can’t afford £5 a week and ask for this to be reduced to £5 a month until after your claim has been considered.
The Vanquis credit card – do you have a payment arrangement in place for that?
Shaun says
I submitted a claim May2019 . Provident only upheld one loan that being the lowest loan and offered £239 . I refused this and sent my claim to the FOS in July 2019 . Then the scheme happened before the FOS got back to me .
I have already voted on the scheme .
Nothing for Vanquish yet !
Sara (Debt Camel) says
does that mean you are still paying Vanquis or you have stopped and they haven’t asked you to pay?
jimbob says
Is it ok to claim from scheme when a bankruptcy cleared a provident loan. Had loads over the years
Sara (Debt Camel) says
Any refunds for loans before your bankruptcy will be paid to the Official Receiver, not to you.
eck loran says
how can provident do this to its irish customers not uk https://www.irishtimes.com/business/financial-services/exiting-moneylender-provident-to-write-off-outstanding-loans-1.4607644
Michelle Campbell says
I would like to know a little more on this as well.
Ken says
I have just seen that story in the Irish times online and like you I can not understand how they have stopped collecting payments in Ireland but not in the uk surly this is discrimination and surly someone should challenge this has how can u have one rule for the Irish and other for the uk and I bet they will still be allowed to make a claim think I will write to my mp about this
eck loran says
yip agree with you if pat seamus and mick are getting there loans written off so should tom dick and harry
Sara (Debt Camel) says
It looks like a commercial decision that the cost of carrying on collecting the Irish loans, which are small, is too large to be worth it. So far as I know, there aren’t any affordability complaints in Ireland.
I can see why this feels unfair but it’s not illegal.
David J says
hello please can someone help what will happen to the outstanding balances if the schemes approved?
Will we still owe them or will they get cleared
Sara (Debt Camel) says
How many loans did you have from Provident before this last one?
How large was the last loan and how much have you paid to it so far?
Is making the payments causing you problems?
Gabrielle says
£1074 still owed to satsuma, paying this through a debt management plan which I am trying to get out of. Should I remove Satsuma from the DMP and not pay them anything at the moment?
thank you
Sarah Louise Tansley says
Hi,
I also borrowed from satsuma-£1000 and they charged me £990 in interest. Completely unaffordable loan and I have about £1200 left to pay through StepChange/ DMP. I am £210 away from borrowing what I actually owed so will the remaining amount be written off? I don’t want to over pay and then not get it back if you know what I mean? Will it be written off? Thanks
Sara (Debt Camel) says
Gabrielle, Sarah,
was this your first loan from Satsuma?
Gabrielle,
why are you trying to get out of the DMP?
Sarah Louise Tansley says
Hiya,
It’s not to try and get out of paying the DMP. I’ve been paying my DMP for years now and Satsuma and another loan are left. I made an affordability complaint and added this loan (the only satsuma loan I’ve ever had) and they refused it and I’ve queried it again recently and even though they have text records of my income and expenditure and details about my personal circumstances etc, they refused again and told me to vote for the scheme. What I don’t want to happen is me keep paying in to the interest and then if the scheme goes ahead, I receive a small amount back or the loan is written off. I think it might be written off eventually which suits me fine but I don’t want to pay more than I need to now if that makes sense as I could lose out?
Sara (Debt Camel) says
Yes that makes total sense. What is the other debt in your DMP?
Sarah Louise Tansley says
It’s a Santander credit card. Was over £5000 but I’ve paid £4100 of that so about £1200 left. About that one, if I was to try and borrow off a family member, as it’s gone to Wescot, could I make them a lower offer and will that go on my credit file as a negative thing?
Thanks
Sara (Debt Camel) says
is it marked as defaulted?
Sarah Louise Tansley says
Hi Sara,
I’ve just checked and it says I have no defaults or repossessions on my report so I guess that means it’s not showing as a default. I actually assumed it was a default to be honest!
Kelly says
Hi Sara,
I put a complaint in with provident early 2020. They rejected it first time and I then sent my complaint to the ombudsman and they replied to me With a copy of the letter they had sent to provident explaining why I should not have been given the loans.
That was in November and I haven’t heard from them since.
The letter stated that provident need to reply by the 12th of November or the ombudsman would make a decision based on the information they already had but nothing.
Could you suggest what I need to do now please ?
Many Thanks
Sara (Debt Camel) says
I think you should phone Provident and ask why they never responded to the Ombudsman in November. Say it is unfair that your case should be caught up in the Scheme because Provident never replied and ask for them to settle your case now.
They may well say No, you have to make a complaint in the Scheme – see the article above for how to do this. But this is worth a try.
Robert says
I have 2 loans with Provident currently. I pay a total of £71 a week. I have had loans in the past and refinanced a lot of times. There is a total of just over £2600 left to pay. Is it worth me carrying on paying or to leave it. I am worried about it affecting my credit rating as I am hoping to buy a house in the near future so need a good rating for a mortgage
Sara (Debt Camel) says
Is the £71 a week affordable?
How soon do you want a mortgage? Do you have a deposit saved up?
IAN R says
I was paying off my satsuma loan online-but now there seems to be a hitch-when I press submit it won’t-tried numerous times has anybody else had a problem with there website-or have they stopped taking payments because of the scheme they propose to bring in ??
Sara (Debt Camel) says
I haven’t heard they have stopped taking payment – I don’t think that is likely.
Was the loan affordable for you – you had a Provident refund I think?
IAN R says
Yes had refund couple years ago will make any difference.to the present situation
Sara (Debt Camel) says
not directly but it means you are probably aware of when a loan is “affordable – so do you think this Satsuma loan was?
Tracy Dickson says
Can I vote I’ve had a letter very confused as to what I’m supposed to do
Sara (Debt Camel) says
Did you have several loans from Provident? did the repayments leave you short of money so you had to take another one? do you still owe any money?
Mark says
I had several loans with Provident/Greenwood within the time span, as did my wife.
She received her email about the SOA, however I didn’t receive anything.
I’ve just phoned them quoting all my old addresses, date of birth and details etc and they say they have no record of me whatsoever!! They’ve even communicated with me via e-mail in the past so should’ve at least had my detail there at some point.
The only thing I can think of is that my wife’s balances were all cleared but my very last loan ended up being passed over to Lowell for collection (who are currently receiving payments each month via a DMP).
I wonder whether they have passed everything relating to me to Lowell and that’s why I can’t be found? It would be odd if they had, after all I had countless fully paid off loans before that last one.
Anyway, they have taken my details and are allegedly going to write to me when they find me.
If I don’t hear back before too long, I’ll be in touch again with them – in case it’s a tactic they are employing! Just seems odd they have my wife’s detail and not mine. Is it worth contacting Lowell? I’m just keen to make sure the connection is made between the two so any right of offset is made correctly with the existing balance.
Sara (Debt Camel) says
can you find their old emails?
yes get some confirmation from Lowell… Lowell should be able to produce the CCA agreement for the debt – if they can, you can show that to Provident. If Lowell can’t, the debt is unenforceable and you can stop paying it… see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Mark says
Thanks Sara, appreciate that quick reply!
Denis says
Hello there,
I had this article appear in a news feed about Provident.
https://amp-theguardian-com.cdn.ampproject.org/v/s/amp.theguardian.com/uk-news/2021/jul/14/uk-watchdog-will-not-block-providents-compensation-scheme-in-court?amp_gsa=1&_js_v=a6&usqp=mq331AQIKAGwASCAAgM%3D#amp_tf=From%20%251%24s&aoh=16263352074309&csi=0&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.theguardian.com%2Fuk-news%2F2021%2Fjul%2F14%2Fuk-watchdog-will-not-block-providents-compensation-scheme-in-court
The head line reads “UK watchdog will not block Providents compensation scheme in court”
It is interesting reading.
I hope that you don’t mind me posting it?
Regards
Denise
Sara (Debt Camel) says
yes, the FCA still doesn’t like what Provident is doing, but it seems that as Provident has now decided to close the doorstep lending division the FCA is less worried.
The Times article this morning pointed out:
“The regulator’s concerns throw a spotlight on the way Provident is treating its customers. Analysis of past accounts by The Times shows that it has paid out about £1.27 billion in cash in the form of dividends to its shareholders since April 2007.
It also handed about £48.3 million in bonuses, including stock awards and dividends on performance shares, to current and former executives. Provident declined to comment when asked if it would seek to claw back bonuses.”
https://www.thetimes.co.uk/article/fca-will-not-block-provident-compensation-scheme-39jp7nj52
So we shall have to see what will happen at the next court hearing.
Paula says
Hi
You have probably covered this already but I was wondering if I can still put a claim in direct to Satsuma using the template letters now or do I now have to wait for the proposed scheme to be put in place
Look forward to hearing from you
Thanks
Sara (Debt Camel) says
if you make a complaint now, it will be ignored.
Have you voted on the Scheme? Voting registers a claim – whether you vote Yes or No.
Debbie says
Hi Sara it’s Thursday 15th July 2021 and IV just read the newspaper update about the provident scheme scheme and to be honest I don’t understand it, can you explain it in easy terms please love x
Sara (Debt Camel) says
Yesterday the FCA wrote Provident a long letter: https://www.fca.org.uk/publication/correspondence/provident-personal-credit-limited-letter-of-concerns.pdf
It says that it dislikes the proposed Scheme and considers it is not consistent with the FCA’s rules, principles and objectives.
But Provident has decided after the FCA’s objections to the first court hearing that the doorstep lending subsidiary (PPC) will not be continuing in business. The FCA says this is important as a result the Provident shareholders will not be retaining a valuable stake in a continuing profitable business at the expense of customers who will only be getting a small amount of redress.
Because of this change, the FCA says it will not be appearing at the second court hearing to oppose the Scheme. But it will be keeping a close eye on any new business Provident starts up to avoid “phoenixing” – this is the practice of directors closing down a company to walk away from loses and setting up a new company to do much the same thing.
Basically – and this is me talking, not using the FCA’s words – now Provident is giving up on doorstep lending the FCA is less concerned about the effect on competition and the rest of the lending market. Legally Provident is entitled to put its PPC division into administration and the FCA cannot stop that.
I still think that ethically this stinks. But it is hard to see on what grounds the FCA could have argued against the scheme legally.
Scott says
Hi Sara,
Interesting read.
I’m curious to see what the FCA will do, I have seen that Satsuma have also stopped Lending but after searching I have seen that Provident, through their profitable Vanquis brand are hoping to start Lending to non Vanquis customers.
No doubt the FCA will do nothing as it’s an existing company offering new products rather than starting a fresh, thereby bypassing a “Phoenix” scenario.
Scott
eck loran says
17 May – 19 July – Voting on the Scheme. Over 428,000 of the approximately 4.2m creditors affected by the Scheme voted , approximately 420,000 voted in favour of the Scheme, while approximately 7,500 voted against.
30 July – Second Court Hearing.
Denise says
Hello there,
I am so sorry for posting this here, I did look but couldn’t determine where to place it….
Please read this article from Martin Lewis “Money Saving Expert” about working from home during lockdown etc…
https://blog.moneysavingexpert.com/2020/04/martin-lewis–working-from-home-due-to-coronavirus–claim-p6-wk-/
It may or may not be helpful to some….I just wanted to share a potential for claiming about £200 plus from HMRC….or having it deducted from future tax payments..
Again, apologies for posting this here…
Regards
Denise
DanDare says
Sara, maybe you could shed some light on the outcome of voting on the scheme?
I can understand how the percentage of votes cast were for / or against, with very simple maths, but ……
How can the percentage by value be calculated immediately on closure of the voting without PFG doing a little consolidation and assessment of the value of ‘voters’ claims?
If they already have the ‘value’ of each voters claim (which they must have to be able to state 98.1% by value) then I’m presuming it would be a swift calculation process to assess any refunds once it’s decided whether to either uphold or reject claimants after the second court hearing….. after all, they’ve already done the math …. apparently
The cynic in me fails to believe that approx only 1 out of 50 (2 out of 100) opposed the scheme. You’d expect a similar proportion to be just hitting the wrong button by mistake!!
The overwhelming majority almost appears like a ‘too perfect’ result for PFG.
Sara (Debt Camel) says
For the vote weighting they used the maximum possible redress assuming all loans are upheld. It’s therefore a simple calculation for a computer and would have been done when the vote was cast, no need to wait for the end.
This is NOT the amount people will have their claim assessed at. The FCA has pointed out that some people who voted will not have a claim upheld.
The very large majority is because most people did not understand that the £50m was an arbitrary number Provident chose to offer as refund total in the Scheme and it could have been much more if they had wanted to.
Denise says
Hello there,
In 2011 and 2012 I took three loans out with Provident. One was paid off to Provident and two were sold on to a company called Lowell and were paid off in total in 2019. I contacted Provident in 2019 about my loans and was told that “If we pay you redress, we would have to pay everyone, so the answer is no!”
I am glad to see that “something” is happening…albeit, a little, but something is better than nothing. I look forward to the end of July to see where this is going and what potential outcome there may be.
Kathleen says
Hi Sara, I was just wondering about my provident loans, my husband and myself put in claims on the 17/12/20, and reading some of the advice we decided to stop further payments on our remaining loans in the March (these where to be payed over 2years) we had already payed what we owed plus a large majority of interest. We also contacted them to make them aware that we had payed more than we had borrowed and wouldn’t be making any further payments until a decision has been. However they have been constantly contacting us to carry on repaying. We have been provident customers for around 15years and were sucked in by thinking they were our friends helping us, but they kept us in debt we have been paying back around £800 a month between us for the past 15years due to them offering us to renew loans. Do we reinstate payments or ignore their demands? We hate confrontation so feel pressure to start repaying.
Thank you for all your advice, you have been a huge help x
Sara (Debt Camel) says
For lending over that long a period you have a very strong case. If you win, then you will only get a tiny amount of the interest back, so every £100 you are pressured into paying them now means you may get back less than £10 of it… so you are likely to be a lot better off if you can ignore their demands.
eck loran says
hi i did this now have been getting emails from capquest debt company so if you dont keep the payments looks like there selling the debt and i have had no correspondence from provident or my agent in the last 3 months
Sara (Debt Camel) says
Are you sure the loan was sold to Capquest? I think they may just be collecting on behalf of Provident. And that this may apply to many loans, complaint or not, defaulted or not. Provident is probably closing down its agent network.
eck loran says
thanks sara i dont know if it has been sold email says new documents on your capquest account but i havent followed up as i dont know the company they are looking for my details name address ect i had loans totalling 20.000 over 15 years still owe 1200 and 5 times my claim has been delayed then the scheme came in so i stopped paying because i feel the more i pay just now i will never see again and no contact from my agent or office or complaints department
Sara (Debt Camel) says
oh that sounds like a situation where you shouldn’t pay.
Turtle says
Amazing how these scum bags will get away with cherry picking the profitable parts of the business whilst fobbing off all the customers they owe refunds to with a few %.
Satsuma was one of the worst sharks I had to deal with getting my money back.
Gord says
Hi Sara why are claims companies still contacting people to claim saying that they can get you more money from provident surely if they get scheme approved then everyone should be the same are claims companies trying to mislead people
Sara (Debt Camel) says
yes they are trying to mislead. If you sign up with a claims company, they will complete exactly the same simple claim form on your behalf that you can fill in. They will add NOTHING to this process.
isabel mcdougall says
My claim is currently with the financial ombudsman and has been since last year October 2020, what will happen now will I still get compansation and will I be notified, i wos with a company before my claim wos sent by the company to the financial ombudsman for about 19 month so altogether it has been going on for about 3years
Sara (Debt Camel) says
If the Scheme is approved by the court – the case was heard yesterday, judgment expected next week – then FOS will return your case to Provident to decide within the Scheme. I think Provident will automatically set up a claim for you, but that’s worth checking. Unfortunately you will only get back probably 5-10% of the amount you should from FOS. Most claims companies will still want their cut of that small amount.
Kelly Morgan says
Hi Sara,
I emailed you back at the end of the month as I put a provident claim In back at the beginning of January 2020 and then in the November the financial obusman sent a letter but nothing was heard from provident. As you advised I chased them up and apparently a cheque was issued in feb 21 but this was not received. Since then I have been informed that 2nd cheque has been raised this will be two weeks ago on Thursday of this week and I have still not received the cheque.
I was advised yesterday that I should receive it soon as they are waiting for the directors to sign.
Are they just trying to stall it as the cheque is for a large sum of money that is due to be refunded to me.
Could you advise if there is anything I can do to get this signed and sent ASAP.
Kind regards
Kelly
Sara (Debt Camel) says
This sounds annoying but I can’t see what you can do to get this speeded up.
Sarah T says
Hi Sara,
Just wondering if you could clarify for me- if the provident scheme goes ahead and I have an outstanding balance which is interest as I will have paid the majority of the amount borrowed, will they write off the outstanding amount?
Thanks
Sara (Debt Camel) says
What happens with an outstanding loan is that interest is removed so you only repay what you borrowed.
Say you borrowed £1000, which with interest added came to £1900. If you have paid £1100, your balance is £800. If your complaint is upheld, the balance will be cleared and you will be due a cash refund of £100. You will only get paid a small percentage of that cash refund, but for you having the balance wiped is the most important thing.
Same loan, if you had only repaid £600, then your balance is £1300. If the complaint is upheld, the balance will be reduced to £400.
Kelly morgan says
So because they issued the cheque and confirmed that to me that can’t take it back ?
Just checking as they are suppose to have an update tomorrow on there so called scheme.
Sara (Debt Camel) says
The court case to approve the Scheme was on Friday. The decision is expected tomorrow.
If as expected the Scheme goes ahead, Provident will still pay in full any amounts they had agreed to pay before the Scheme – they aren’t delaying this in order to get your payments into the Scheme.
But this must be nerve-wracking for you!
Kelly morgan says
Thank you.
That’s exactly what I was thinking was happening.
So was slightly worried.
Thank you for the response.
Sara (Debt Camel) says
On 4 August the High Court approved the Scheme going ahead.
The comments on this article are now closed.
Please see the new article https://debtcamel.co.uk/provident-scheme-claim-refund/.
That will be kept updated throughout the Scheme. It is a good place to ask questions and leave comments.