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  • FIRST POST
    • Spacemates
    • By Spacemates 15th May 18, 9:27 PM
    • 5Posts
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    Spacemates
    Provident loans handed to pensioner
    • #1
    • 15th May 18, 9:27 PM
    Provident loans handed to pensioner 15th May 18 at 9:27 PM
    Hi just her to ask for some advice if possible, my mother (70 years young) is showing the early signs of Dementia, we thought it was beginning but she refused help and laughed it off, very recently she had a breakdown and finally agreed to get help, it was from there other problems started to become known, whilst renovating her home we stumbled across a few Provident loan agreements, well a few I count 15 in the past five years, all at the highest rate they offer and all for 52 or 64 weeks, and most have not gone full term and look to be paid off on the date of another loan, these total to near on 10000 in total including interest.
    I spoke to my mother when she arrived back from a rest period and whilst I renovated her flat, she has not fully lost her long or short term memory and is still fairly independent, when I asked her about her loans she spoke back to me about the lady who hands over the money as if she is a close friend, she smiled and said "yes she comes every week and sometimes waits while I go to the shop to get her money, she tells me that I have paid enough in to get some more?" I was shocked so I questioned her a little more and she seems to think she is paying in to get money she had saved back out, I left it at that but took all the paperwork.
    I have contacted provident via phone then email to say what I have found out, they would not talk in detail as she is the account holder but I said for them to never have a collection agent call at her door again and that I would take over paying the latest loan off, I have paid two payments so far and about to offer to pay the lot off in the hope the debt will be reduced, my question in will it be reduced? And is there anything else I could do, I really think provident has taken advantage of her some loans show two new ones on the same day, I know I cannot prove much with my mums memory problems but the way she genuinely thinks it's money she has paid in that she is getting back in a lump sum is the bit that is so upsetting, I just want to know what has been told to her all this time, she has only a pension to live off and at points she was paying in well paying back 50 per week and nothing at all to show for the money she has been handed.
Page 1
    • zx81
    • By zx81 15th May 18, 9:41 PM
    • 18,621 Posts
    • 19,880 Thanks
    zx81
    • #2
    • 15th May 18, 9:41 PM
    • #2
    • 15th May 18, 9:41 PM
    The debt won't be reduced while payments are being made. She would need to default on it, and while her credit file may not be important to her, she may not want the stress of collections activity.

    If you're able to do so, I would clear the debt now and talk to her about not taking out any more loans.
    • Spacemates
    • By Spacemates 15th May 18, 9:44 PM
    • 5 Posts
    • 0 Thanks
    Spacemates
    • #3
    • 15th May 18, 9:44 PM
    • #3
    • 15th May 18, 9:44 PM
    Yes it's the stress of them knocking at her door, I don't want that for her at all.
    • adamditz
    • By adamditz 15th May 18, 9:46 PM
    • 14 Posts
    • 4 Thanks
    adamditz
    • #4
    • 15th May 18, 9:46 PM
    • #4
    • 15th May 18, 9:46 PM
    Ive got no helpful input - but this is really upsetting and disgusting on there part. I understand business is business and ruthless all the rest of it, but sounds very underhand and like shes been taken advantage of to me. Hope you find a solution
    • D_M_E
    • By D_M_E 15th May 18, 9:53 PM
    • 1,824 Posts
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    D_M_E
    • #5
    • 15th May 18, 9:53 PM
    • #5
    • 15th May 18, 9:53 PM
    I think that usually once any such loans have been paid off then you need to be present when the agent calls and tell them in no uncertain terms that their presence on your mother's doorstep will not be welcome, otherwise they will just continue their leeching activities.

    This sort of thing is nothing short of legalised loan sharking in my opinion.

    Also to add that it sounds like she has been pressured (taking out) into loan after loan just to clear the previous existing loan without understanding what was going on and I think would warrant a valid complaint to the FCA and Provident.
    • antrobus
    • By antrobus 15th May 18, 10:34 PM
    • 16,036 Posts
    • 22,873 Thanks
    antrobus
    • #6
    • 15th May 18, 10:34 PM
    • #6
    • 15th May 18, 10:34 PM
    ...Also to add that it sounds like she has been pressured (taking out) into loan after loan just to clear the previous existing loan without understanding what was going on and I think would warrant a valid complaint to the FCA and Provident.
    Originally posted by D_M_E
    No, you make a complaint to the Provident and then, if unsatisfied you complain to the FOS - Financial Ombudsman Service. The FCA don't do complaints.
    • Sncjw
    • By Sncjw 16th May 18, 8:15 AM
    • 1,916 Posts
    • 1,129 Thanks
    Sncjw
    • #7
    • 16th May 18, 8:15 AM
    • #7
    • 16th May 18, 8:15 AM
    I!!!8217;m shocked at reading this. Leaching off an elderly person. To me it sounds like she doesn!!!8217;t even think she is getting the money she has paid back anyways. She might think il pay some money and il get say free money. Like she doesn!!!8217;t even think it!!!8217;s savings. The person selling it to her maybe made it sound like this just so she gets more and more.

    I hope you get it sorted out.
    • Candyapple
    • By Candyapple 16th May 18, 2:24 PM
    • 2,943 Posts
    • 2,290 Thanks
    Candyapple
    • #8
    • 16th May 18, 2:24 PM
    • #8
    • 16th May 18, 2:24 PM
    Hi just her to ask for some advice if possible, my mother (70 years young) is showing the early signs of Dementia, we thought it was beginning but she refused help and laughed it off, very recently she had a breakdown and finally agreed to get help, it was from there other problems started to become known, whilst renovating her home we stumbled across a few Provident loan agreements, well a few I count 15 in the past five years, all at the highest rate they offer and all for 52 or 64 weeks, and most have not gone full term and look to be paid off on the date of another loan, these total to near on 10000 in total including interest.
    Originally posted by Spacemates

    You said that your mum is showing early signs of dementia, but these loans started 5 years ago. Do you have any idea what your mum spent the money on?

    Sounds like a dreadful situation, hope you get it sorted and definitely put in a complaint.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • 1931modela
    • By 1931modela 16th May 18, 6:04 PM
    • 52 Posts
    • 18 Thanks
    1931modela
    • #9
    • 16th May 18, 6:04 PM
    • #9
    • 16th May 18, 6:04 PM
    Might also help if you get a Lasting Power of Attorney for Health & Finance set up, which we have done for my MIL, as she was signing for stuff the family knew nothing about ie exterior wall treatments etc, luckily we found the paperwork early and were able to cancel it. (This was before we set up the POA)
    • poppy10
    • By poppy10 16th May 18, 6:09 PM
    • 5,996 Posts
    • 7,243 Thanks
    poppy10
    Ive got no helpful input - but this is really upsetting and disgusting on there part. I understand business is business and ruthless all the rest of it, but sounds very underhand and like shes been taken advantage of to me.
    Originally posted by adamditz
    Hardly. You can't expect lenders to do a cognitive assessment on everyone they lend money to. OP says mum is only just beginning to show early signs of dementia, and is still independent day to day. You may well not be able to tell in a casual conversation that she has any memory problems, and certainly five years ago when she took out the loans it would hardly have been obvious that she had any issues.
    What's your solution. Bar old people from taking out loans? That wouldn't go down well.
    the way she genuinely thinks it's money she has paid in that she is getting back in a lump sum is the bit that is so upsetting
    Originally posted by Spacemates
    Lots of people see doorstep lending in this way. Sadly financial illiteracy is endemic and is not restricted to old people or those with dementia. Provident's business model is based on targeting people with low incomes and low understanding of financial matters. It's a shady business but until the government do something about it it's perfectly legal
    • brendon
    • By brendon 20th May 18, 12:45 PM
    • 503 Posts
    • 444 Thanks
    brendon
    This happened to my nan many years ago with a doorstep loan agent. The sales agent posed as a friend and would come around to make a cup of tea and do a bit of cleaning. My nan had complex mental health problems and was being convinced to take out loans, pay them off, take out another, etc, etc. She had no need for a loan, but agents are compensated on issuing new loans.

    I would first find out who the agent is. Then I would write to both them and Provident to remove the implied right of access. It may also make sense to get a power of attorney. As for claiming compensation/interest back, I am not sure whether that is possible - perhaps somebody else could assist.
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