The Guardian has today reported that the lender, Provident Financial, has made the announcement that it needs to introduce a scheme to reduce compensation payments, following a surge in customer complaints, or face putting it’s consumer credit division into administration.
The doorstep lender Provident Financial has said it could put its consumer credit division into administration unless borrowers agree to a scheme that will sharply reduce compensation payments following a surge in customer complaints.
Provident have proposed to allocate £50 million to the scheme, which will reduce compensation payouts to customer complaints. Provident paid out £25 million in payouts during the second half of 2020, compared to £2.5 million during the same period in 2019.
Doing so would lead to payouts estimated to be around 10% of a compensation entitlement, but customers would get nothing were it to fold.Source BBC (https://www.bbc.co.uk/news/business-56401497)
Provident customers will be asked to vote on the proposal, which will also ned to be approved by the courts. This news follows in the footsteps of a similar scheme by guarantor lender, Amigo Loans, earlier this year.
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.
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.
It’s has been documented in the news of instances where Provident have been lending irresponsibly Which means provident customers are able to claim compensation directly with Provident or via a Claims Management Company.
If you claim directly to the lender yourself, you will not be charged anything, however if you require the service of a professional claims management company, please be advised you are likely to pay around 30% of your refund in fee’s once the refund claim is successful.
he Reclaim Experts specialise in helping our customers to receive Loan Refunds for a variety of loans including Guarantor Loans, Payday Loans (short term) and Doorstep Loans. In simple terms this is claiming back money that you, the borrower, are entitled to, due to your leader not making the necessary checks before they gave you the loan.
If you have found that you were unable to pay the loan you could be eligible to claim compensation. Start your claim or get in touch with the experienced Reclaim Experts team who will guide you through the process. Visit this page to see whether you could be eligible to make an unaffordable loan reclaim.
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