provident loan

avoy29

Hi,

I am after advice on a provident loan that I have. I have used them for years, and have found them useful. My last loan with them was taken out several years ago, for £1000 over two years. I know its a large amount, but at the time it was manageable.

My problems arose after about six months when my finances took a severe turn for the worst. I rearranged a lot of my debt, provident being one them and they were happy with my rearranged payment plan.

At some point i 'mislaid' my payment book, and didn't ask for another. So, over the last couple of years I have been a minimal amount to them, and then this week I received a letter off them saying I was in arrears. The original loan was:

£1000
Interest £1200
Total to pay £2200

Paid £1700
Arrears: £500

This was a surprise to me, as I hadn't realised I had paid so much (especially in interest). My plan had always been to repay the capital of the loan as this was what I borrowed, and then come to some arrangement over the interest.

My question is should I continue paying the loan, or should I call provident and tell them, as they have had a huge amount paid to them already, that I refuse to pay them any more.

Any advice either way would be gratefully received.

tomtontom

You misunderstand, you can't just elect to pay the capital and ignore the interest until a later date. By all means ask for a breakdown of your payments, but from what you've described they've done nothing wrong.

[Deleted User]

avoy29 wrote: »

At some point i 'mislaid' my payment book, and didn't ask for another.

Have you looked down the back of the sofa? I often find things there.

avoy29 wrote: »

My question is should I continue paying the loan, or should I call provident and tell them, as they have had a huge amount paid to them already, that I refuse to pay them any more.

I'd imagine they would prefer you fulfil the terms of the agreement. But it's a personal choice if you want to try to get out of it, and the consequences of that.

lynz68

You agreed to the amount at the time and should be thankful they haven't actually added more interest as you didn't stick to the original agreement.

If you want to risk getting a CCJ and messing your finances up for the next 6 yrs carry on with your plan if not pay up.

I haven't used Provident for several yrs but one thing I will say from the outset you know what you have to pay back there is no hidden fees or charges. while interest rates are astronomical it's all there in black and white.

David301

Pay what you owe

samanthaknd

The interest seems asronomical, but I suppose you would have had to agree to that by signing a declaration before they hand over the money.

bengal-stripe

avoy29 wrote: »

At some point i 'mislaid' my payment book, and didn't ask for another. So, over the last couple of years I have been a minimal amount to them, and then this week I received a letter off them saying I was in arrears. The original loan was:

£1000
Interest £1200
Total to pay £2200

Paid £1700
Arrears: £500

This was a surprise to me, as I hadn't realised I had paid so much (especially in interest).

You might want to check your own records to see how much you have actually paid. There is a possibility, Provident have made a mistake and they will come back to you in a week/month/year: "Sorry, you actually owe us £xxx". Alternatively, ask Provident for a break-down of your actual payments.

Most people overestimate their actual payments, very rarely do they underestimate.

dealer_wins

Seriously do you think you can just not pay what you signed for and agreed to repay lol

[Deleted User]

The easiest thing is to ask yourself "where do I go next time"

Trust me, getting a declined when you'll next need help is just as awful to spin it - (perhaps you want to wish for this who knows)

If you had a short term loan with a 'payday lender' then most likely you get a little discount for paying up early, or very late, or if you want to claim it was 'irresponsible lending' wonder when provi customers are going to get some redress if it can happen so easily for the payday loan market :mad: the most humiliating thing is knowing the interest paid right now is just being given away to customers who can complain about irresponsibility (when it wasn't at the time) and walk away 'unblemished I'm alright jack'

happy_bunny_2

avoy29 wrote: »

Hi,

I am after advice on a provident loan that I have. I have used them for years, and have found them useful. My last loan with them was taken out several years ago, for £1000 over two years. I know its a large amount, but at the time it was manageable.

My problems arose after about six months when my finances took a severe turn for the worst. I rearranged a lot of my debt, provident being one them and they were happy with my rearranged payment plan.

At some point i 'mislaid' my payment book, and didn't ask for another. So, over the last couple of years I have been a minimal amount to them, and then this week I received a letter off them saying I was in arrears. The original loan was:

£1000
Interest £1200
Total to pay £2200

Paid £1700
Arrears: £500

This was a surprise to me, as I hadn't realised I had paid so much (especially in interest). My plan had always been to repay the capital of the loan as this was what I borrowed, and then come to some arrangement over the interest.

My question is should I continue paying the loan, or should I call provident and tell them, as they have had a huge amount paid to them already, that I refuse to pay them any more.

Any advice either way would be gratefully received.

As them for a statement. that will show balance, arrears etc.If they refuse to provide it, complain, in writing.

Thats not how loans work, you will likely get a default and maybe a CCJ if you dont pay. You really ought to be checking your credit file now to see how its being reported with those arrears.

If you cant afford it, you should talk to a debt charity, such as Stepchange.

HB

Clive_Woody

avoy29 wrote: »

My plan had always been to repay the capital of the loan as this was what I borrowed, and then come to some arrangement over the interest.

The arrangement regarding the interest is normally done at the beginning, often referred to as a contract or loan agreement.

I've not heard of loan where you pay back the capital then have a discussion with the lender about how much interest you feel like paying them.