top of page

Claim A Provident Loans Refund

The Financial Ombudsman has substantiated 85% of complaints against Home Credit lenders, particularly doorstep lenders. Provident, a prominent player in this sector, is actively working towards implementing a redress scheme to compensate affected customers.

Established in 1880, Provident Financial, a longstanding provider of short-term doorstep loans, has faced scrutiny for lending irresponsibly. Offering personal loans ranging from £100 to £1,000 over 13-52 weeks, Provident delivers cash to your door and collects repayments weekly at your home. Recent news highlights instances of irresponsible lending by Provident, potentially opening avenues for customers to claim compensation. Doorstep loans, also known as home credit loans, have come under regulatory scrutiny, with the Financial Conduct Authority closely monitoring companies like Provident. The BBC reported that Provident had to pay nearly £169 million in compensation for mis-selling a specific loan product, coupled with a £2 million fine to the FCA. Additional complaints involve agents selling home credit loans to individuals who couldn't afford them. In 2019, Provident faced controversy for offering "lending bonuses" to doorstep lending staff, raising concerns about bonus payments linked to loans issued to subprime borrowers. The Financial Ombudsman upheld 85% of complaints against Home Credit Lenders (Doorstep Lenders) at one point. On March 15, 2021, Provident announced plans to introduce a scheme of arrangement, allocating £50 million for compensation payments for claims made before December 17, 2020. Claims for loans issued after this date will be processed outside the scheme. Provident warns that failure to approve the scheme may lead its consumer credit business into administration. Recently, Provident introduced Sunflower Loans, managed by the same team as its previous Consumer Credit division, which necessitated the compensation scheme due to mis-selling.

Why could I receive a Provident Loan Refund?​

  • Affordability Checks: Was the loan affordable for you before Provident approved your application? Provident may not have conducted the correct affordability checks.

 

  • Excessive Charges: Did your loan include excessive charges such as high interest and fees? The FCA has implemented a price cap to protect borrowers from such excessive charges.

 

  • Communication on Affordability: Did you inform your lender that the loan was unaffordable, yet they proceeded? Responsible lending requires lenders to recognize and address the unaffordability of a loan.

 

  • Debt Disclosure: Were all your debts disclosed during the application process? If your disclosures did not align with your credit record, Provident should have verified and cross-checked this information.

 

  • Income Verification: Did you accurately state your regular income during the loan application, especially if you are self-employed or experienced changes in job history? Provident should have ensured a thorough examination of your income to guarantee regularity and consistency before approving the loan.

bottom of page