Provident has at last done the right thing and is paying customers who have cheques from Provident that are too old to be banked.
Good! I expect this may affect several thousand people who have cheques ranging from a few hundred to a few thousand pounds.
If you have one of these cheques, Provident should have sent you an email about it. Here is an example of what a Debt Camel reader’s email said:
If you have one of these old cheques but haven’t been sent an email about it, phone Provident on 0800 121 8034 and explain this. Also make sure Provident has your current email address – if they haven’t, you may not be getting notifications about the Provident Scheme and it is now urgent that you make a claim to the Scheme, see below.
Why is this happening?
This may sound odd – why would large numbers of people not have banked a cheque from Provident?
It goes back to the very poor offers Provident often made to people from 2018-20 who had made affordability complaints. They frequently used to offer to refund just a few loans, often not the largest or the most recent.
For example, in one case with a large number of loans, Provident upheld a loan for £1,000 but decided the next loan for £2,500 was affordable.
That’s not unusual – many lenders have made very odd offers. But Provident gave this unfair practice an extra twist by enclosing a cheque with its offer.
These cheques were being sent to people who were often in need of money and who weren’t sure what a good refund would be. So many people cashed the cheques. That meant they could not take their complaints to the Financial Ombudsman (FOS) as they had accepted the cheque in full settlement of their complaint.
But others kept the cheque and sent their complaint to FOS.
When the Scheme was announced, they tried to cash the cheques but for some, the cheque they had kept was too old to be bankable. Until now Provident has refused to send out a new cheque.
Can you do this if you have made a claim in the Scheme?
Yes. If someone has made a claim in the Scheme they should still ask for their uncashed cheque amount to be refunded now.
This is an invented example that shows what could happen:
- Mrs A has an uncashed cheque for £1,200 which was a refund on just 5 of her 22 Provident loans and she makes a claim to the Scheme.
- She can now ask for that £1,200 to be paid into her bank account.
- In the Scheme they will assess all her 22 loans. Suppose they decide that 15 should be refunded with a total value of £6,000.
- If she has already been paid the £1,200, they will take that off the £6,000 leaving a refund of £4,800. She may then be paid 10% of that – £480.
What if you haven’t yet made a claim to the Scheme?
In the example above, Mrs A should ask for the cheque money to be paid to her now AND she should make a claim to the Scheme. She was given a very poor offer originally and can get hundreds more by also making a claim.
See 4 million must claim a refund before end Feb 2022 which looks at how to make a claim.
This is now urgent – claims have to be in by the end of February.
If you are having problems submitting a claim, leave a comment below this article.
Alan says
When I made a claim for my Mother they offered £2,900, I refused the offer and complained to the FSO, they advised Provident to refund over £20K,that was 18 months ago, my Mother passed away in June and Provident has contacted saying that there is a uncashed cheque, apparently my Mother was entitled to the offer of £2,900 as well, but we ripped up the cheque, now I am in the process of reclaiming that money to donate to a dementia charity.
Annie says
Can you help me They say I have made a claim I had an I’d number which I deleted by accident I don’t think I used a portal I remember calling them I haven’t given bank details either.I had a balance which was written off in December What happens now
Sara (Debt Camel) says
did you vote on the Scheme?
Annie says
Yes I voted but I’ve not filled anything else in or tgat
Sara (Debt Camel) says
I think they may have taken a vote as lodging a claim.
Gordon Bangs says
I was a provident collection agent and I am ashamed to say I followed training on signi g paperwork for customers and doctoring the figures so that loans wer affordable and in acceptable ranges of lendabilty. But as soon as I found out what was going on I questioned it being a customer myself and had been for a number of years. I haven’t heard from anyone about refunds. I refused to pay the loans I had knowing they were wrong and in the way they were for cable processed and was taken to courts and I filled out all relevant paperwork and sent back to lowel solicitors 13 days before courts date and miraculously they didn’t arrive proving my case and I now have a ccj and forced to pay £100pm
Annie says
What happens with outstanding debt that was written off in December if claim is now upheld although not expecting a thing from them just being curious
Sara (Debt Camel) says
When they work out your refund it is from the debts they upheld. That will usually include the last one that was written off.
This is an easy way to think about this – the Provident system may do it in a more complicated roundabout fashion but it should come to the same number…
Assuming 3 debts are being refunded including the last one, add up the total you borrowed for those three debts. And then add up what you paid. And the refund is the difference. This is the fair way to do this and it handles the written off debt fine.
Say you owed £200 to the last one which was written off. If you had paid that, your refund would be £200 higher as you had paid £200 more. So you can think of the write off as being instead of having to pay it and they get a larger refund.
Annie says
Thank you So they will have got all my records out themselves and went through them .I’m not expecting anything back anyway and at least that last one is written off now It was like a noose round my neck that one
Just spoke to provident on phone.Trying to sort out this portal thing.She said a lot of decision have been sent.Mistly not upheld . Everyone should hear by end of March.She couldn’t tell exactly how many had applied or what percentage might be .
Charlie says
I have received my email and out of a total 12 loans between 2007-2020, they have decided that only 3 were unaffordable. Obviously I don’t agree with this and plan to appeal. Is there a best way to word my email to them?
Sara (Debt Camel) says
do you have the details of your loans? The amount borrowed, the interest you paid. The date borrowed. The date repaid.
Unless you know this, it’s hard for you to make an argument that “these four extra loans were also unaffordable because of x,y and z”.
If you don’t have that info, then I suggest your first step is to reply saying you want to appeal but you need the details of the loans first and specify what information about each loan you want.
Charlie says
They have sent me a list of the loans and have said because the loans were not super close together or for increasing amount, they do not qualify as “unaffordable”
My argument to them is that at least 2 of the loans were split into different amounts (eg. £750 & £750) so that the loan doesn’t read as £1500.
The argreement numbers on the loans are very close together.
Also…how do they work out the 8% interest?
They are explaining it as everyone will be getting 4-6 pence per £1, but when they have workrd it out there is no mention of the 8% interest.
Sorry if I’m being a bit thick
Sara (Debt Camel) says
have they sent you the details of the dates of the loans? And how much interest was paid on each?
Charlie says
No, I will request this though.
Many thanks
Stephen says
Hi, I have my email from the scheme stating my claim has been upheld, and I’m entitled to receive a refund (and states the cheque for the refund is enclosed in the letter???) then asks me to update my bank details on the portal for the refund of the compensation I’m owed… where do I find this cheque as I’ve got received a letter, also, has anyone been able to contact them at all?!? Because I’ve been on hold for 6 hours yesterday and 3 hours today?!
Jenny says
The cheque will come in the post I got mine today took about 2 weeks from when I was told my out come
Jennifer May Williams says
I can not get into the portal
Jenny says
Received my overpayment cheque today but where can I cash it my bank closed and the nearest bank I’m with is to far away
Sara (Debt Camel) says
You can’t pay it in on the app? Is there a Post Office nearby, sometimes you can do bits of banking there.
Sophie says
Hi
In my outcome letter it states I have an enclosed cheque of £1013.
I haven’t received this cheque and have just noticed that it is in my old address.
Could I get a new one sent out or have I lost this?
Sara (Debt Camel) says
you can ask them to send you another one. It’s going to be hard to get through to them now, it is a shame you didn’t spot this earlier.
Sophie says
Hi do u know if there is any one I could talk to on a Sunday?
Sara (Debt Camel) says
I don’t think so.
Sophie says
I am trying to contact someone about my refund cheque that I haven’t received. I can not get through does any one have a number which is easy to get through
george says
I was sent a cheque it had the wrong name on it can you tell me if has been sent out by post to my address the scheme number is 45b5-bef5-e4d7 thank you
Sara (Debt Camel) says
You need to get in touch with Provident. This website is my personal blog – it has no connection with Provident.
Margaret Limbu says
I only realised yesterday that I had never received a payment in the bank or a cheque and i was told I was getting money back. Now all the portals and email addresses are closed, is there anything you think I can do about this. I done mine through a portal and got a personal number from them. I do not know who I would contact now and there was only 6 months to get another cheqe (even although I didn’t get one in the first place) time is running out now. Thank you for any advice anyone can give me.
Gordon Bangs says
Neither have i and i have had 9 accounts with them and i guarantee im owed money as i worked for them and sis some highly questjonBle things unddr instruction from managef to get people loans