The deal applies to customers who have seen themselves badly selling unaffordable home loans through Provident or three of the brands it owned – Satsuma, Greenwood and Glo, and claims are open today.
Borrowers who have been mis-sold by Provident Financial can now get some of their money back under a new indemnity agreement.
The deal applies to clients who mis-sold unaffordable loans through Provident or three of the brands he owned – Satsuma, Greenwood and Glo.
Provident has set aside £ 50million to pay off customers with outstanding debts, in a scheme called a ‘scheme of arrangement’.
But the news will be a disappointment for many of Provident’s clients, as the lender believes it can only repay an average of 5-10% of disputed loans.
But it’s better than nothing – and nothing was a very real possibility.
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Provident asked the High Court in London to approve the scheme because it feared it would not be able to reimburse all clients who filed complaints without running out of money.
The financial ombudsman’s watchdog sided with customers in three-quarters of the complaints against Provident.
So it is unlikely that you will get all your money back, but you could still receive hundreds of pounds in compensation.
You could even get back more than 10% of your loan if fewer people are claiming than Provident expects.
Refunds are available from tomorrow after the agreement is signed by the High Court today.
Approximately 4.3 million loans are covered by the pot and were all issued between April 7, 2007 and December 17, 2020.
The loans, which were issued by the four different brands, were sold between April 6, 2007 and December 17, 2020.
To be eligible for reimbursement, you must have taken out a loan during the period that was unaffordable.
This means that you would be unable to pay off the loan along with your bills and living expenses.
You have six months to request a refund, which you can do online here,
If you have a valid claim, Provident will tell you how much you will be reimbursed.
He will also show how he came up with the figure he is offering you.
But there might be a long wait for the refund, as customers won’t be refunded until next year.
Provident Managing Director Malcolm Le May said: “We expect creditors to receive reparation payments in the second half of 2022.”
But the deal was criticized by the regulator of the Financial Conduct Authority, who said: “We have made it clear that we do not support the program for a number of reasons, including the main concern that consumers see themselves offer much less than the full amount of the repair. they are owed. “
The device will be closed at the end of 2022.
In May, Provident announced that it opt out of the home loan after more than 140 years.
The lender, which reported a loss of £ 113million for the year, cited “changing customer preferences” for its decision to stop pushing loans on people’s doors.
Provident has been lending and collecting reimbursements on the doorstep since the 1880s. The most recent figures show the company had approximately 380,000 customers.
Many of his loans are for short-term repayments and are often small amounts – typically a few hundred dollars.
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