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  • FIRST POST
    yellow100
    Provident Financial secrets revealed
    • #1
    • 4th Oct 09, 4:41 PM
    Provident Financial secrets revealed 4th Oct 09 at 4:41 PM
    Provident Financial based in bradford is a door step lender, ala a modern day loan shark company, but dressed in suits and based in offices, so people think of them as reputable.people with very poor credit history or people who the banks won't lend to, are providents biggest customer base, so they target this customer base with emails, letters, card offers, vouchers, cold calling...........etcThey have 'agents' who are self employed and work on a commission basis, so the more loans they can get people to sign up for the more commission they stand to make. These agents target even pensioners, people over 70 years of age and get them to sign for loans, loans which they don't need.The agents give out loans to anyone, they don't care, as long as they make their commission!Staff are told to use the name 'ck edrupts solicitors' when you call them, so you think you are calling a real solicitors company, its the name they have on some of their letters, but in fact you are calling provident financial telephone staff, 'we act for provident financial' - but in reality there is NO ck edrupts solicitors - its just call centre staff based at providentwhen you call to make a payment, they will ask you to make a higher payment, example......if you offer to pay 5 a week, they will ask for 20 a week, then they will say 'let me speak to my manager' - now they will just put you on hold, there is no mananger, they you to want to think they are talking to manager!then they will say to you 'i just spoke to my manager, we can meet you half way at say 12 a week' - to avoid court proceedings, they use scare tacticswhen a customer calls provident staff will ask' HOW MUCH can you pay today' - they have been told to say this, so you WILL make a paymentYou DONT have to pay them, what they ask you to pay, you can offer them 1 a week and there is NOTHING they can do about it, besides making court threats, which they NEVER carry out on debts under 500 - because it costs the company more in court expenses, paper work...........etc, so its not viablethey treat they staff like slaves, underpay them, make they work silly hoursThe BEST way to NOT pay provident and ALL your creditors is to take out a DEBT RELIEF ORDER, which costs less than 100 to apply for, this will WIPE AWAY ALL your debts inc providents, after 6 months from application dateMAKE SURE you list provident personal credit or greenwoods personal credit on your DEBT RELIEF ORDER REFUSE to provide any further information after you have sent in the DEBT RELIEF ORDER to provident, DO NOT PROVIDE ANY INFORMATION ON A MORTGAGE, CARS, PENSIONS.........etc you have, as they will use this to object the DEBT RELIEF ORDER - saying this customer has money to pay for insurance for a car, car tax, petrol, has a mortgage, so he has money to pay usSO DON'T TELL THEM AND ALL YOUR DEBTS WILL BE WIPED CLEAR IN 6 MONTHS TIMEThey are also culling staff numbers before or after xmasAVOID provident financial, ask your friends or family for financial help, but stay clear of this company!A channel 4 documentary which will be shown this year or early next year on door step lenders, which will have covert footage on how they REALLY workThey also owned YES CAR CREDIT - that says it allThey con staff by giving them a 500 bonus at xmas, which is halved after tax, to make staff think 'yeah this company really cares about me, i love them' - its all a facade, your just a number to them!you can also take legal action against provident sending you letters for requsts for payments - its harrassment and you can claim ALL the interest on their loans and any PPI insurance you have taken out with themtake out a 1000 loan, then 2 weeks later go bankrupt and tell them when you signed for the loan, you didnt realise you financial circumstances would change and you would be bankrupt, they can't take the money from you!they buy debt cheap from other companies, which is why they are so keen to offer 'settelemnts' on your loan, so they could buy your debt from xyz company for 30 (you have 500 debt) and then they will say to you, 'we can offer you a settelemnt at 235' - making you think its a bargain, when in fact they bought your 500 debt for 35 and are asking you to make 235 as full final settlement - clever don't you think!
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    • jamespir
    • By jamespir 5th Mar 10, 2:49 PM
    • 18,725 Posts
    • 19,767 Thanks
    jamespir
    seems like total rubbish to me im not keen on provident

    but i think welcome finance are worse
    Replies to posts are always welcome, If I have made a mistake in the post, I am human, tell me nicely and it will be corrected. If your reply cannot be nice, has an underlying issue, or you believe that you are God, please post in another forum. Thank you
  • usedandabused
    to be fair to the OP, Provident are loan sharks, rip off merchants that prey on the vulnerable, like i've said before, like prostitution, if people stop using the ahem 'services' it will hopefully stop the exploitation, which is morally abhorant
    • immoral_angeluk
    • By immoral_angeluk 5th Mar 10, 3:08 PM
    • 23,754 Posts
    • 22,635 Thanks
    immoral_angeluk
    Provident aren't loan sharks, they just target a particularly vulnerable group of people, thos eon low incomes, who are likely to be more tempted to borrow more than they can realistically afford. There should be more onus on companies like provident to protect the customer but sadly companies are only interested in making money, within the regulations set through the OFT etc.
    Total 'Failed Business' Debt 29,043
    Que sera, sera. <3
  • usedandabused
    ok we agree they exploit vulnerable people, the Government need to grow a pair and seriously clamp down on the financial institutions from the fat cats at the commercial banks to dodgy !!!!!!!s like Provident.
    • Enfieldian
    • By Enfieldian 5th Mar 10, 7:56 PM
    • 2,703 Posts
    • 2,755 Thanks
    Enfieldian
    I had a Provvy loan a while back, to cover an emergency when I was less credit worthy/solvent than now.

    It was fine. I was told how many repayments I had to make and how much they were.

    I really don't see the problem. It is just like any other loan but the interest rate, or in this case the total amount paid back, is higher because of the circumstances of the borrower.

    At that point in time, based on my credit history, I would not have lent me 500 without making it substantially worth my while.

    The agent who came to collect did hint at reloans a couple of times towards the end but I was paying monthly in advance so he soon stopped asking.

    So. If you know what you are getting in to, like any other loan, and can handle it, fine.
    • ~Brock~
    • By ~Brock~ 6th Mar 10, 8:44 AM
    • 1,610 Posts
    • 1,532 Thanks
    ~Brock~
    ok we agree they exploit vulnerable people, the Government need to grow a pair and seriously clamp down on the financial institutions from the fat cats at the commercial banks to dodgy !!!!!!!s like Provident.
    Originally posted by usedandabused
    But...hey, at least you're not bitter
  • wontfallforit
    I have a problem with Provident. Many of my neighbours are with them, and without being nasty I'm not sure they're all able to understand apr's and what they're getting themselves into. Not just Provident, I've been approached by other doorstep lenders, but I think cold calling in areas where they are more likely to meet 'customers' who don't understand what they're doing is just wrong, morally if not legally.
    Originally posted by Ames
    I find that a little patronising. Sure, there are people who don't understand what they're getting into, but that's not the fault of the Provi. Although I dislike the Provi and their ilk, they make no secret about the fact that they charge exceptionally high interest.

    I've used the Provi in the past - unfortunately - and my mother had many a Provi loan when we were growing up. Both myself and my mum are educated, and completely understood what we'd "gotten into".

    What we also understood, though, is that in times of desperation, the banks won't lend amounts like 200, repayable on a weekly basis. When it's got to be done, it's got to be done...thankfully those days are long behind us.
    1 / 50p 2011 holiday flight + hotel expenses = 98.50/600
    -----------------------------------------
    HSBC 8% 12mth regular savings = 80 out of a maximum remaining allowance of 2500
    -----------------------------------------
    "3 months' salary" reserve = 00 / 3600
  • pipps0316
    I have used the provident for over 5 years now, (this was before they gave your account information to the credit file companies)

    When we take a loan or credit card from any company we all fully understand what we are doing and the repayments.

    I never allow the payments to drag out for the year or so they give you to pay them back. This is how they make their money, just like if you pay minimum payments on your credit cards every month.

    My last loan with the provident was for 200. I should have paid back 310 if i allowed the loan to be paid by minimum payments. I paid it off over two payments and only paid 16 interest on my 200, saving 94 on interest.

    Not everyone who takes a provident loan is able to pay such amounts back quickly and i understand that, but provident provide a service, which if only limited on choices, we still have the choice to go with them or not to.

    I thank provident for their friendly service and yes when i very first took a loan with them all those years back I went through 2 or 3 checks when the area manager even visited my house.
    • hullight
    • By hullight 7th Mar 10, 6:11 PM
    • 511 Posts
    • 287 Thanks
    hullight
    Are the people saying the government should shut payday loan companies down the same people that complain about the nanny state when they are told by the government to stop smoking and stop drinking.
  • sarah1773
    does anyone know if you can make repayments to provident without an agent coming to your door? I have paid most of it via an agent but I have had to leave home temporarily for my own safety. Can you not ring up and pay via debit card or send a cheque???
    Thanks in advance
    • adea
    • By adea 23rd Mar 10, 11:11 PM
    • 377 Posts
    • 420 Thanks
    adea
    does anyone know if you can make repayments to provident without an agent coming to your door? I have paid most of it via an agent but I have had to leave home temporarily for my own safety. Can you not ring up and pay via debit card or send a cheque???
    Thanks in advance
    Originally posted by sarah1773
    call 0800 916 6440 and you can pay with your card.
  • Bob Jones
    I have worked in this industry on and off for years.

    Some facts:

    Most companies pay 6-10% to agents for collecting the money. They may offer incentives if they are looking to recruit new customers.
    It is illegal it canvas (door knocking) for cash loans. Thats why they offer vouchers, products etc
    APR is an awful measure of these loans. Competition Commission stated in their April 2006 Final Report on Home Credit that.

    “the APR is a particularly difficult measure to interpret, and may be more so in the context of home credit, where APRs are often very high and are not a good basis for comparison of loans.”

    Personally total interest is a better measure but it depends on the circumstances/purpose of the loan.
    There are A LOT of alternatives to Provident and Greenwoods:
    Shopacheck (were part of Welcome so get tarred with the same brush)
    Local Loans (examples on their website are cheaper than PF)
    Flex Finance (ditto)
    Eccles (Manchester area) - couldnt find a website
    Ealing Trading (London/Herts)
    Short Term Finance (Brum)
    KDS (North East)


    and thats just the ones Ive heard of.

    Provident are often a target as they by far the biggest but there are are tonnes of, often cheaper, alternatives out there.

    It doesnt look like the govt are serious about building up credit unions as they have been saying for years. Apparently there are less now than 10 years ago. So the private companies will have to fill the void.
    Last edited by Bob Jones; 11-04-2010 at 8:59 PM. Reason: spelling
  • sarah1773
    I have found out that Provident are the same company as Vanquis. Unfortunately I owe money to both but am struggling to pay due to separating from my husband and being a single mum. I wanted to pay off my Provident loan as I only have 60 remaining (my parents have offered to pay this) as I find the agent very intimidating whereas I owe Vanquis 600 which I cannot pay at the minute and have told them I am struggling financially.
    I was just wondering, will Vanquis find out that I've paid off all my Provident loan and demand I pay off my Vanquis account too? As surely they will see it as if I have 60 to pay off provident then I should have 60 to pay them as well?
    Thanks

    Just want to add, my first agent from provident was lovely, like most of them probably are, just my current agent will not take no for an answer and I find his presence intimidating and makes me feel very uncomfortable, this is no reflection on the rest of the agents
    Last edited by sarah1773; 10-04-2010 at 10:39 AM.
    • whichwhydoIturn
    • By whichwhydoIturn 10th Apr 10, 9:34 AM
    • 538 Posts
    • 1,906 Thanks
    whichwhydoIturn
    Hi, sorry about your worries at the moment.These 2 companies are seperate to each other i would have thought as you would have signed two different credit agreements,i would have thought that when you called them(vanquis) to expalin your circumstance that if they knew about your provident account they would have said something.there will be some one along shortly i'd have thought that knows more about this than me,bt i didnt want to read and run if you know what i mean.things will get better x
    • scooby088
    • By scooby088 10th Apr 10, 9:41 AM
    • 3,244 Posts
    • 3,568 Thanks
    scooby088
    My mother was a provident agent for about 15 years and she was friends with nearly all the customers, but i do agree that provident are very high with the interest they charge, it stood me in good stead not to have a provident loan for anything.
  • tea690
    i have a loan with provident and greenwood..both my agents are fantastic people who have never egged me to have loan and always check my finances very carefully before letting me have one to ensure i can afford it

    yeah they are not ideal and the apr is high but in an ideal world noone would be in debt and everyone would have perfect credit and places like this forum would not exist lol
  • pifflepyramid
    Hi, i'm actually a provident agent and thought i would set a few facts straight about some of things being said on this thread. Firstly about sarah1773 owing money

    I was just wondering, will Vanquis find out that I've paid off all my Provident loan and demand I pay off my Vanquis account too? As surely they will see it as if I have 60 to pay off provident then I should have 60 to pay them as well?
    Just contact vanquis and ask to pay off the debt at a rate you both agree to. They will be happy to do this.

    Just want to add, my first agent from provident was lovely, like most of them probably are, just my current agent will not take no for an answer and I find his presence intimidating and makes me feel very uncomfortable, this is no reflection on the rest of the agents
    Contact Provident Head Office and complain, its as simple as that. An agent should not be threatening a customer in any way. The agent may well be known to the local office for doing this sort of thing. You will probably be transfered to a better agent.

    To all those who do not like provident, just don't use them. They offer a monetary service at high interest because they will lend to ANYBODY. Even previous customers who did not pay!! This is why it is high interest! And it is fixed interest not cumulative so what you owe is fixed and doesnt increase. Also no charges are made for missed payments unlike many bank loans. I would say having companies like provident is a blessing for many many people. If these companies did not exist the void left would be filled by illegal loan sharks - then many people would be in real real trouble dealing with cumulative interest, extra charges, threats and violence.

    Regarding provident preying on the vulnerable, I personally do not take advantage of customers and am always straight and fair and honest with them. But yes, i agree provident as a company - and also some agents - do sometimes take advantage of vulnerable people but we live in a capitalist society and unfortunately this means vulnerable people will be taken advantage of if a company can get away with it. Its not nice but thats the truth. Big Banks and many other businesses will lie and cheat and pull the wool over your eyes to get a sale or a loan or persuade you their product is better than others just because, for example, a famous footballer pretends to like it. Are they not taking advantage of vulnerable people? In ultra capitalist britain, I think most commercial operations are looking to take advantage of you. My advice is to get clued up about these things so you will not get taken advantage of - maybe moneysavingexpert.com is a good place to start!
  • needs_a_new_job
    Provident aren't loan sharks, they just target a particularly vulnerable group of people, thos eon low incomes, who are likely to be more tempted to borrow more than they can realistically afford. There should be more onus on companies like provident to protect the customer but sadly companies are only interested in making money, within the regulations set through the OFT etc.
    Originally posted by immoral_angeluk
    Not necessarily people who are either vulnerable or on low incomes Provident is high risk lending for people with poor credit history. As such the charge for credit is high because not all of the customers will pay back what they owe, therefore those that do, pay for those that don't!

    Those that do will improve thier credit rating and perhaps be able to move on to a cheaper lender those that don't will have cut off thier last option.
  • MRS SPIKE
    Hello new member here,but long time reader.

    Just a small point re the matter of Provident not buying outside debts...ie acting as DCA's.

    I have right before me,a letter from Provident personal credit,stating that they have bought a debt from JD Williams,and are offering a reduction of the balance,to be paid in weekly installments at 0% apr...

    So,it would appear that they have branched out in the field..

    They are planning on sending a field agent to discuss payment plan.....the alleged account is already being disputed with original creditor,hence I think is the reason it has been sold on...no proof provided the account belongs to me,so cannot enforce collection.
    Last edited by MRS SPIKE; 15-10-2011 at 12:29 PM. Reason: missed info
  • MRS SPIKE
    Oh,just a quick addition.....my apologies for posting to a topic 6 month dormant,I only just now noticed the date of last response.
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