Provident Loans Refund Claims
The Financial Ombudsman have upheld 85% of complaints against Home Credit lenders (door step lenders)
Provident are currently trying to introduce a scheme for paying redress to customers
Founded in 1880, Provident Financial is one of the oldest companies of short term and doorstep loans. They provide personal loans of £100-£1,000, over terms of 13-52 weeks, for consumers, with the cash being delivered to your door and repayments collected weekly, also from your home. Have you ever had a loan from Provident? If the answer is Yes, You maybe able to claim a refund from Provident Home Loans.
It’s has been documented in the news where instances confirm Provident have been lending irresponsibly. This means provident customers maybe able to claim compensation with Provident.
Doorstep Loans, also known as home credit loans, are used by 1.3 million people in Britain and it’s the practice where a collector comes to your house to collect the repayments, rather than paying them through a bank or standard repayment scheme.
Lenders who offer doorstep loans have come into the spotlight recently, with the Financial Conduct Authority keeping a very close on companies like Provident. The BBC documented that the doorstep loan provider, has to pay “almost £169m in compensation to customers’ after mis-selling a particular loan product to customers whilst paying a fine of £2million to the FCA.
Other complaints about doorstep loans include people being sold a home credit loan by an agent when they could not afford it. In 2019, there was also a controversial report of Provident offering “lending bonuses” to it’s doorstep lending staff, with concerns of having “bonus payments linked to loans issued to subprime borrowers”.
In their latest numbers, The Financial Ombudsman upheld 85% of complaints against Home Credit Lenders (Door Step Lenders)
On 15th March 2021 Provident announced they intend to introduce a scheme of arrangement, in which £50m would be set aside for compensation payments for claims made before 17 December 2020, which are still unresolved. For any customer who took out a loan after 17 December 2020 any claims in respect of such a loan will be processed outside of the Scheme. Provident claim that if the scheme is not approved then their consumer credit business will go into administration. The full announcement from Provident can be found here
You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Why could I receive a Provident Loan Refund?
Was the loan affordable to you before Provident granted your application for a loan? Provident may have not conducted the correct affordability checks.
Did your loan have excessive charges combined onto it, such as high interest and charges? The FCA have introduced a price cap to protect borrowers from excessive charges.
Did you tell your lender that the loan was unaffordable but they continued anyway? The lender should have released that the loan was unaffordable and not given it to you. This is irresponsible lending.
During your application process, you may have not mentioned all of your debts. If this didn’t match with your credit record, Provident should have ensured to double check this.
When you applied for the loan, you may have not stated your correct regular income, due to be self-employed or your job history changing during this time, Provident should have looked at this and ensured you had a regular, consistent income before giving you a loan
Provident are currently in the process of introducing a scheme for customer complaints, where eligible customers will automatically receive some redress. Please contact them directly for further details. If you want to claim against any other lenders then please see our claims process here.