Financial firm Provident Personal Credit, which owns the Provident and Satsuma brands, has announced that it will stop collecting payments on existing loans after December 31, 2021. Affected borrowers should receive an email or letter stating that they can stop repayments after receiving notification – even if that’s before December 31st.
This means that if you still owe money on your loan, it will zero the amount and update your credit file to show the balance as zero and show the loan as partially paid by December 31st. Any payments you make after December 31st will be refunded to you, but it is best to cancel direct debits sent after that date.
While Provident has not been able to disclose the average balance being cleared or the exact number of people whose loans will be written off, it confirmed that it will benefit tens of thousands of borrowers.
The company, which has stopped making new loans, previously made short-term surety and door-to-door loans, in some cases charging interest of up to 1,557.7% APR, to borrowers who had difficulty accessing standard credit. However, it has been hit hard by false claims for misappropriated loans and will now be closed for good on December 31st.
For more information on how these lenders work, please see our guide to payday loan recovery.
You can still file a bad sale complaint online – but you have to be quick
If during the term you were unable to afford the loan, whether you are a borrower or a surety, it is likely that it was misissued – meaning you may have a valid affordability complaint. You may not receive the full amount you owe because withdrawals have been capped. But don’t let that put you off because you could still get 100 pounds back.
A dedicated online claims portal has been set up for Provident and Satsuma customers and you can now register for claims through the program’s website. No need for your credit details or paperwork, but you will be asked to provide your System ID which you should be able to find in any letters or emails you have received about it. If you don’t have this or if you need further assistance, you can email email@example.com or call the hotline on 0800 056 8936.
The deadline for filing complaints is February 28, 2022, but it is best to file your complaint ASAP in case there are any issues filing your claim.
Not sure whether you can make a claim? Our payday loan recovery guide walks you through everything you need to know.