The FCA (Financial Conduct Authority) have reported “significant concerns” about Provident proposed Scheme of Arrangement. The Times have reported that the FCA have concerns about “the method of assessing claims and about the reduced payouts”.
Providents Scheme of Arrangement is due to be voted upon by its customers in July. For the scheme to be granted, over ¾ of customers have to approve the scheme.
If the scheme is approved, it would ensure that all customer complaints would receive something, however, the £50 million pot of the company’s money, put aside for the scheme, would not be enough to satisfty all claims in full.
Customers would receive a portion or a set amount of their entitled loan refund. Numbers wise, it is estimated that customers would received between 2%-10% of the full refund amount, under the scheme.
If the scheme is approved, customers have a window of 6 months to make a claim; if customers do not make a claim within 6 months, they loose any right to compensation.
Provident have estimated that they would start making payments under the scheme during the “first half of 2022“, if the scheme is approved.
If the scheme is not approved, it is likely that Provident, Glo, Satsuma and Greenwood would be placed into administration or liquidation.
This means that no customer complaints would be unlikely to be settled either with a financial refund or compensation.
For borrowers who would still be paying off their loan, it would able mean that their loan would still need to be repaid, or if they have a valid claim, they may be able to claim a balance reduction or write-off.
If you have already made a claim to Provident for a mis-sold loan, or are a current Provident customer, they will be getting in touch with you via email or letter. A copy of this letter, can be found on the Provident website here.
If you have not yet made a claim to Provident for a mis-sold loan, you still can, however, Provident will not be working on any new claims, until they know the outcome of the scheme. If the scheme is approved, you will have to resubmit a claim under this scheme.
Whilst we wait for news on Provident’s Scheme of Arrangement, either way, we will keep you fully informed and up to date.
If you have experienced being mis-sold another type of financial product, a Guarantor, Payday or Doorstep Loan, PCP Car Loan or Catalogue Card Credit, we can help. We want to help you get the compensation you deserve, before any other schemes pop up!
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