MORE than four million payday and home loan customers are being urged to request refunds they may be owed.
If you were wrongly sold a Provident, Greenwood or Satsuma loan, you could expect compensation even if you have already repaid it.
Some Provident and Greenwood doorstep loans, Satsuma payday loans, and Glo guarantee loans were sold to cash-strapped borrowers who could not afford them.
Thousands of borrowers had their repayments written off late last year after Provident shut down its doorstep lending business.
Now, payouts are being offered by lenders as part of a program to pay back borrowers — even if they paid off their debt years ago.
Customers who mis-sold loans at prohibitively expensive prices have just weeks to claim a share of a £50million compensation pot.
The claims window closes at the end of February and it is better to apply sooner rather than later.
Here’s what you need to know:
How much compensation could I get?
You’re unlikely to get back as much as you’re owed by the company, but it could still be in the hundreds.
And you can also get bad grades from your Schufa.
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 properly screen the borrowers. Hundreds of thousands of people have taken loans from Provident for years without interruption.
“You have a good chance of getting a ‘bad loan’ claim approved – even if you made all repayments on time.
“If you win, you’ll get back some of the interest paid – it’s worth making that claim.”
If you took out a loan from Provident, Satsuma, Greenwood or Glo between April 6, 2007 and December 17, 2020, you may be eligible for a payout.
How much you get back depends on how much you borrowed and for how long, as well as how many others are requesting a refund.
The cash will be paid out after the refund system ends at 5:00 p.m. on February 28, 2022.
However, the payout is not instantaneous as each claim is checked individually.
Where do I request my refund?
If you think you’ve gotten an unaffordable loan from Provident, Satsuma, Greenwood or Glo, come see us scheme.providentpersonalcredit.com.
You can submit a claim online or by calling 08000 568 936 – or you can download a form to mail.
Submitting a claim is free.
But beware of claims adjustment firms who say they will do this on your behalf as they will withhold some of the money you get back – and it’s easy to do it yourself anyway.
You will need a Scheme ID to submit your claim, which should be sent to you by email or letter.
Call the number above if you don’t have it.
You don’t need details of your loan to make a claim, Sara says, but you may need to provide evidence of default or court judgments.
These will appear on your credit report if they are within the last six years.
It’s better to file a claim sooner rather than later – just in case there’s a problem submitting information just before the deadline.
What else should I consider?
Sara also advises you to reapply if you previously declined a refund or accepted a low amount.
This is because lenders have previously rejected too many complaints.
Your Guide to Claims also notes that you can make a claim regardless of whether you paid the loan on time, defaulted, or the loan was resold to a collection agency.
None of the four companies are currently lending to new customers.
If you are a former customer of The Money Shop, Payday UK or Payday Express you could be set for compensation today (14 January) or Monday.
And if you think you’ve been mis-sold you an unaffordable loan from one of the lenders still operating, you can file an affordability complaint here.
We pay for your stories!
Do you have a story for The Sun Online Money team?