Provident financial loan mess

zelda1992

Hey all,

I'm new here and wanted some advice from you lovely people to help my sister. My sister got into debt in 2015 when her partner (not married but had been together 14 years and 2 kids together). It was totally unexpected with no warning he just up and left for someone else and never came back. At the time she had a satsuma loan that she had used to get her car fixed, she took out £500 but sadly got into arrears when her partner left because she had a house and kids to take care of without any financial help from him. She got into a debt spiral and didn't tell any of the family because she was embarrassed. I only found out 2 months ago and I have been trying to help her get her debt sorted. So to the point. I went over her credit file with her and see she has 2 loans and a credit card all with provident finacial. The first was satsuma that she took out in 2015 and defaulted within 3 months of taking it out and has been paying payments ever since in a payment plan with them, she then had a provident door step loan for £300 which she got into arrears with and provident rolled that loan over and gave her a even bigger loan (I know what a mess) and she also got a cresit card in 2017 from vanquis who are also owned by provident. Does this week wrong to any of you guys? They already knew she couldn't afford to pay the first loan but carried on giving her more, they are all owned by the same company so shouldnt they of been some kind of flag when she applied for more loans through another company owned by them. All together she took out around £1500 and almost 4 years later she still owes over £3000. She has made regular payments but it just doesn't seem to be going down. Thank you for all your help

sourcrates

Hi,


A few more details about your sisters circumstances would be helpful.


Is she a homeowner, or rented ?


How much is the car worth approx ?


What sort of wage does she earn ?


Her complete income/expenditure detail would be nice.

-taff

Has she deafulted on these loands/cards?

Fireflyaway

Seem some advice from somewhere like step change of payplan. They might be able to suggest options and contact creditors on her behalf, possibly freezing the interest and negotiating an affordable repayment.

fatbelly

We're clutching at straws because of the lack of information but as a broad brush I'd say there is unlikely to be a misselling angle here and if she's making payments but the debt is still rising then Sherlock Holmes deduces:

-Interest and charges are still being applied
-she isn't paying much

Stepchange/Payplan is a good shout as someone needs to look at the detail here. If she can afford over £50 per month then a debt management plan should work. If less than that, and she meets the other criteria sourcrates was hinting at,, it's probably a DRO. Although 3k is on the low side, there's no minimum and I've seen them done for that amount. Gives a fresh start.