Provident inviting people to claim compensation

OrbitHeadache

Received the email below from

noreply@provident-online.co.uk

"THIS EMAIL IS IMPORTANT. Please read this carefully if you have ever received a loan from PROVIDENT, GLO, SATSUMA OR GREENWOOD.

 

PLEASE NOTE: Although this email address and website state Provident Personal Credit, this email should be read by customers who have received loans from PROVIDENT, GLO, SATSUMA OR GREENWOOD or guaranteed a loan from GLO.

 

This email relates to matters which affect your legal rights. The information below does not affect your responsibility to carry on making your normal payments in respect of outstanding loans.

 

Our records show that you may have had a loan from Provident, Glo, Satsuma or Greenwood, or that you may have guaranteed a loan from Glo between 6 April 2007 and 17 December 2020. If you received a loan from Provident, Glo or Satsuma, the loan came from a company called Provident Personal Credit Limited ("PPC"). If you received a loan from Greenwood, the loan came from a company called Greenwood Personal Credit Limited ("Greenwood"). PPC and Greenwood are together the "Lenders".

 

The loan or guarantee may have been unaffordable to you because the Lenders may not have carried out the right checks when they made the relevant loans or took the relevant guarantee.

 

We are writing to all borrowers who received loans from the Lenders ("Borrowers") and to all persons that guaranteed a loan from Glo (the "Guarantors") to see if the Lenders may owe you compensation. If you are a Borrower with a valid claim, your compensation claim will be calculated based on the interest paid on the loan. If you are a Guarantor with a valid claim, your compensation claim will be calculated based on the amount actually paid by you. If you have a claim as both a Borrower and a Guarantor, you will need to submit each such claim separately.

 

We are using a plan called a "Scheme of Arrangement" (the "Scheme") to deal with all Borrowers and Guarantors (together "Consumers"). Please visit https://scheme.providentpersonalcredit.com which includes a letter called a "Practice Statement Letter" which sets out more detail about the Scheme"

The email is longer so have just copied and pasted the opening bit.

Has anyone else received this? Is it not strange that Provident themselves are asking users to submit claims against Provident for potential compensation?

superbigal

I believe Provident's email address probably is not -online.  So probably just an ambulance chaser.

OrbitHeadache

superbigal said:

I believe Provident's email address probably is not -online.  So probably just an ambulance chaser.

Done some further digging and same message is on Providents website.

https://www.providentpersonalcredit.com/

Dont know why they have emailed me I had my complaint upheld against them back in 2019.

Or potentially more compensation is now available?

OrbitHeadache

https://www.google.com/amp/s/www.bbc.co.uk/news/amp/business-56401497

Interesting article, seems provident are asking people to claim smaller compensation or they will not get any compensation if the company goes into administration.

sourcrates

It explains in the email why they are writing to you, they are entering a scheme of arrangement with their creditors to avoid bankruptcy, much the same as Wonga, and other PDL companies have done, they are obliged by the terms of the scheme, to write to past and present customers in order for them to submit there complaints now, if they think they were granted an unaffordable loan.

They will be judged by much less stringent criteria than normal, as any redress paid will be significantly lower than it normally would have been, once the scheme is live, there will be a cut off date for complaints, and after that date, no further complaints can be accepted.

helpyhelper

As said, they are entering a scheme to pay out customers a portion of what they can claim all at once. How much you could get and whether it is best to vote for the scheme is uncertain though. The threat is you could get nothing if it is rejected and the company goes under. It is worth reading more about it so here are some useful links....
About the proposal: https://debtcamel.co.uk/provident-satsuma-scheme/
Some further context: https://debtcamel.co.uk/provident-scheme-tiny-refunds/
Quick overview on who can claim: https://www.theclaimsguide.com/provident
The actual announcement of the scheme: https://tools.euroland.com/tools/Pressreleases/GetPressRelease/?ID=3882475&lang=en-GB&companycode=uk-pfg&v=

helpyhelper

If you already had a claim upheld against them though you won't be eligible for anything more as you already have your money back. They are probably just emailing you because they have to email all past customers.

epg200

What do people think... is it best to vote for or against this?

[Deleted User]

Who is voting against anything? Any arrangement to pay less like with Wonga will be agreed between the firm and the powers that be, you won't be able to vote for to stop it as the lender will agree that with their main creditors (assuming the court in April even agrees there should be a vote)

Edit - clarified a point

epg200

@farfetch That is categorically untrue. By law they have to have current and past customers, who count as creditors, approve it like the Amigo scheme. The announcement from Provident confirms this "However, such concerns (if any) are not expected to be of a nature that would prevent customers being given the opportunity to decide for themselves whether or not to support the Scheme, or to oppose it in favour of the alternative, i.e. insolvency proceedings for CCD, notwithstanding any concerns the FCA may have."

[Deleted User]

epg200 said:

@farfetch That is categorically untrue. By law they have to have current and past customers, who count as creditors, approve it like the Amigo scheme. The announcement from Provident confirms this "However, such concerns (if any) are not expected to be of a nature that would prevent customers being given the opportunity to decide for themselves whether or not to support the Scheme, or to oppose it in favour of the alternative, i.e. insolvency proceedings for CCD, notwithstanding any concerns the FCA may have."

Good luck "voting" to stop the administrator and the company agreeing to a lesser payout, the creditors (the big businesses, not the individuals) will agree it with the courts - a process that is already in place as above. You won't be voting to stop anything as I said. The choice is either you accept a partial refund or the lender goes into administration and you get nothing (though current customers will likely get a reduction or write off of their debt). The "vote" i.e. box ticking, takes place in June/July time if the first court hearing on 22nd April agrees there should be a vote, all the creditors will be entitled to take part and the big ones (not customers) will vote it through.

https://debtcamel.co.uk/provident-satsuma-scheme/