PROVIDENT Loans - Dilemma

Siani_Winwns

Hi, has anyone had any experience of Provident loans? The APR on these loans is 177%!!!!!:mad: That's not a typo.

I have just found out that my mother (67yrs, no assets, and living on nothing more than a pension) has been borrowing money from them for years, basically borrowing more to repay the last loan she got into arrears with - and they keep giving her more!!!

Her current situation - borrowed £300 at a cost of £295 then a month later borrowed £450 at a cost of £292.

My dilemma is that I want to contact the agent and the comany and tell them not to lend her money again as she is vulnerable and on medication for anxiety - no wonder!

What should I do - should I interfere? She has no other family.

I have no idea what this money is for - bills I think.

Your views would be appreciated.

MARTIN - How about a campaign against these types of loans??? I know they are a useful thing if you really are desparate and cannot get credit anywhere else.....but when they lend you money time after time just to repay the last loan.....that has got to be wrong. I have all the evidence of this too.

flufff

Does she get income support?If so could get a budgeting loan(no interest!) of up to £1000 from benefits agency.
I would advise you to go citizens advice.They may be able to lower her payments and freeze interest.
Unfortunately these are only types of loans the most vulnerable can get.Its better to scrimp and save and think hard before taking out one of these.
I agree the government needs to ban interest rates this high.

Siani_Winwns

Oh yes, she has had many budgeting loans too......I don't know what's outstanding on those.
Thanks for your reply

PS - My first cat was called Fluff - she lived until she was 21!

flufff

I have a fluffy ginger and white,his niknames fluff.Has all the attitude of persian and ginger tom rolled into 1.Hes 12,my baby.

Wish I could help more.I'm pretty sure citizens advice may be compiling evidence on provident and similar loan companies.
Come on Martin please.

adea

I work as a provident agent to earn extra income.
I agree that the interest is sky high but that is for a couple of reasons (i'm not defending the rate btw)
Not many other companies will lend you money without a credit check,if you're on benefits and do door to door service.
I can fully appreciate your dilemma Siani, I too would be unhappy if someone just kept re-issuing loans to my mother.
In a manual I have got from the office, it states that once a customer reaches 65, the weekly rate should be reduced.
If you feel unhappy about how you feel the agent is dealing with your mother, get the agents name and then contact the office they work in and request to speak to someone about him/her and you should be put in contact with their manager.
However, the manager will probably not discuss the payments with you as that is contrary to the Data Protection Act.
Maybe you should make an appointment to go to the office with your mother and see if between you something can be arranged.
I hope something can be sorted out and your mother and you, can start to relax.
Please note, I am not trying to say that everyone should get a provident loan nor am I trying to justify anytihng that is done by the company.

firesidemaid

CAB is a good idea. do you know if she is getting all the pension credits, benefits etc she is entitled to? maybe you could look at her income and help her do a budget?

i hope you manage to get it all resolved.