MORE than four million payday and doorstep loan customers are being urged to apply for refunds they might be owed.
If you were mis-sold a loan by Provident, Greenwood or Satsuma, you could be in line for compensation, even if you’ve already paid it back.
Some doorstep loans from Provident and Greenwood, payday loans given by Satsuma and guarantor loans from Glo were mis-sold to cash-strapped borrowers who couldn’t afford them.
Thousands of borrowers had their repayments written off at the end of last year after Provident closed its doorstep lending business.
Now payouts are now being offered by the lenders as part of a scheme to refund borrowers – even if they repaid their debts years ago.
Customers mis-sold loans at unaffordable rates have just a matter of weeks left to claim a share of a £50million compensation pot.
The window for claims closes at the end of February, and it’s better to apply sooner than later.
Here’s what you need to know:
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How much compensation could I get?
You’re unlikely to get back as much as you’re owed by the firm, but it could still be hundreds.
And you can have bad marks struck from your credit record, too.
Debt Camel blogger Sara Williams told The Sun: “Provident loans were only meant to be used for short term borrowing – that’s why the interest rate was so high.
“But Provident did not make proper checks on borrowers. Hundreds of thousands of people borrowed continuously from Provident for years.
“They have a good chance of having a claim for ‘unaffordable lending’ upheld – even if they made all the repayments on time.
“If you win, you will get back some of the interest you paid – this is worth applying for.”
If you took out a loan with Provident, Satsuma, Greenwood or Glo between April 6, 2007 and December 17, 2020 you could be eligible for a payout.
How much you get back will depend on how much you borrowed and for how long, as well as how many others apply for a refund.
The cash will be dished out after the refund scheme closes at 5pm on February 28, 2022.
The pay out won’t be immediate though, as each claim will be assessed individually.
Where do I claim my refund?
If you think you were given an unaffordable loan from Provident, Satsuma, Greenwood or Glo, visit scheme.providentpersonalcredit.com.
You can submit a claim online or by calling 08000 568 936 – or you can download a form to send off.
Submitting a claim is free.
But beware claims management firms who say they will do this on your behalf, as they will take a cut of the money you get back – and it’s easy to do yourself anyway.
You’ll need a scheme ID to submit your claim ,which you should have been sent via email or letter.
Call the number above if you don’t have this.
You won’t need details of your loan to make the claim, says Sara, but you may need to show evidence of defaults or county court judgments.
These will be in your credit report if it’s in the last six years.
It’s better to make a claim sooner rather than later – just in case there’s an issue submitting information close to the deadline.
What else do I need to keep in mind?
Sara also advises you make a claim again if you were turned down for a refund before, or accepted a low amount.
This is because the lenders rejected too many complaints before.
Her guide to claims also points out that you can make a claim whether you paid the loan on time, defaulted, or if the loan was sold on to a debt collector.
None of the four firms are currently lending to new customers.
If you’re an ex-customer at The Money Shop, Payday UK or Payday Express, you could be set for compensation today (January 14) or on Monday.
And if you think you might have been mis-sold an unaffordable loan by one of the lenders still operating, here’s how to make an affordability complaint.
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