Thousands of payday loan and home loan debt canceled for Satsuma and Provident customers
THOUSANDS of customers who have taken out payday loans and borrowed money through home loans have had their debts forgiven.
Anyone with an outstanding loan with Provident or Satsuma will no longer need to repay what they owe.
Provident announced earlier this year that it was closing its home loans after nearly 150 years in business.
The company’s online payday loan business, Satsuma, was also shut down.
Since then, he hasn’t taken on new clients, but anyone with an existing loan still had to make repayments.
Now, Provident and Satsuma customers with outstanding loans have been notified that they will no longer have to repay the money they owe.
Both businesses will close permanently by the end of the year and outstanding balances will be reduced to zero.
A Provident spokesperson said: “Provident Financial Group has informed Mortgage and Satsuma customers that effective December 15 it has stopped collecting their payments and all outstanding customer loans are now written off.
“Customer credit files are also being updated to show a zero balance. PFG’s consumer credit division will close as scheduled on December 31, 2021.”
It is understood that tens of thousands of borrowers are affected by the loan cancellation.
They will see their loan marked as settled or partially settled on their credit report and will not have to do anything.
No more refunds will be made after December 31 and anyone who makes one after that date will be refunded the money.
If your money has been forwarded to a debt collector acting on behalf of Provident or Satsuma, the loan is written off.
But if your loan was sold to another company because you fell behind, you still owe the money and MUST continue to make repayments.
Sara Williams from debt advice website DebtCamelsaid, “This write-off is a nice Christmas surprise for people with Provident and Satsuma loans who were struggling to repay them.”
But customers whose debt has been written off should also make a claim if they believe they were wrongly sold on a loan from Provident or Satsuma.
She said: “Anyone who has suffered this write-off should now consider making a claim on the pension scheme.
“Getting the balance may have been your top priority, but if your application is confirmed, any negative marks on your credit report for unaffordable Provident and Satsuma loans will be removed.
“It may be worth more to you than getting money back.”
Cashback for badly sold loans
About 4 million customers could be owed money if they wrongly received a loan.
This goes for those who still had an outstanding loan that has now been written off and those who have already paid it off – even many years ago.
Anyone who took out a loan from Provident or Satsuma between April 6, 2007 and December 17, 2020 could be eligible.
They must, however, claim the money and have until the end of February next year to apply.
Customers who took loans from Greenwood or Glo, which were also managed by Provident, could also be indebted in cash.
To get a refund, your loan must be deemed “unaffordable” and the majority of complaints about Provident have been upheld due to a lack of proper affordability checks.
A loan is only affordable if you can make the repayments while still being able to pay all your regular bills and living expenses.
On the other hand, if your loan repayments meant you had to go into more debt or not pay, it was probably unaffordable.
How much you get back will depend on how much you have borrowed and how long you have borrowed, as well as how many other people are asking for a refund, as there is a fixed amount of money to give away.
The money will be distributed after the redemption program closes on February 28, 2022.
You can read more about how to claim if you think you were wrongfully sold a Provident or Satsuma loan in our guide.
Thousands of pounds could be owed to you by other providers who have mis-sold loans and other financial products.
Half a million Sunny payday loan customers had their credit records wiped out last year due to mis-sold loans.
We pay for your stories!
Do you have a story for The Sun Money team?