Provident customers can claim compensation through a new Provident compensation scheme backed by the High Courts. Provident have set aside 50 million to pay out claims from customers who were mis-sold their loans.
Provident had a 200% increase in unaffordable lending complaints in 2020 and the Financial Conduct Authority were upholding around 75%. Provident said they couldn’t afford to keep refunding their customers in full when the complaints were upheld. This prompted the Provident compensation scheme and subsequent agreement with the courts.
Was my Provident loan mis-sold?
The Provident compensation scheme only covers customers who had loans from 6 April 2007 and 17th December 2020, but covers Provident, Satsuma, Greenwood and Glo – who are all part of the Provident brand.
If you were given a loan and couldn’t afford to pay it back without struggling, falling behind with your other debts or bills, or feel like you’ve been given more than you needed, it could be due to the provider failing to complete the necessary checks, resulting in unaffordable lending.
There are no specific checklists for lenders to follow, but they do need to act fairly by carrying out reasonable and proportionate checks. If you repeatedly borrowed from Provident without a break, this might suggest an unaffordable lending cycle that you were caught in.
How do I make a compensation claim against Provident?
Provident have created a portal to register details of your claim. You’ll need to have the details registered with Provident to enter your claim, these should be on any letters or emails you have from them. If you had more than one account with Provident or one of their counterparts, you need to create a joint claim.
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