THOUSANDS of customers who got cheques from Provident can cash them in if they haven’t already.
The doorstep lender sent borrowers compensation but not all of them banked it as they believed they were owed more.
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Former customers of Provident have been able to claim compensation for mis-sold loans – some of them worth thousands of pounds.
Some people who made a claim were offered cheques, but this was often not for the largest amount they had claimed for.
Many did not cash the cheque in the hope they were entitled to more.
But since then Provident has closed it’s doorstep lending business and they will get far less under a redress scheme.
Provident is now allowing customers to cash in outstanding cheques that are out of date.
Until now it had not issued new cheques.
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Provident is emailing customers to let them know they can cash these old cheques.
But anyone who hasn’t been contacted and hasn’t got one can contact Provident directly.
A spokesperson for Provident said: “Cashing a cheque did not stop a customer going to the Financial Ombudsman Services, or applying for compensation through the Scheme of Arrangement.
“If you have lost your cheque, please contact us on 0800 121 8034. Cheques can be cashed within six months of being issued, and customers can apply to the Scheme of Arrangement until the end of February 2022.”
Sara Williams who runs the Debt Camel blog, and first spotted the change, explains that in one case with a number of loans, Provident upheld a loan for £1,000 but decided the next loan for £2,500 was affordable.
If they didn’t cash the cheque in the hope that they would get more, they can now.
And they can still make a claim for the other loan – though they will get less than before the scheme started.
CASH BACK
Ex-customers have until the end of this month to claim a share of a the £50m pot set aside to refund those who were mis-sold loans.
The scheme to refund borrowers was agreed in August last year, but offers less than the full amount they are owed.
Anyone with a cheque can cash it in now, and still claim compensation from the scheme too.
Although it won’t be the full amount, it could still be a significant sum.
How much you get will depend on how much you borrowed, how many times you borrowed and your personal circumstances.
You can also make a claim if you borrowed cash from Satsuma, Greenwood and Glo, which are all part of Provident and have since closed.
You can find out how in our guide but you need to be quick, there’s a deadline of Feb 28 to make a claim.
Sara told The Sun: “There are millions of people who borrowed from Provident regularly for several years since 2007.
“They may all have a good affordability complaint even if they repaid all the loans on time.
“Provident should have made better checks before giving out these loans.
“It is now urgent that people contact Provident to make a claim for a refund before the end of February or it will be too late.”
Provident and Satsuma customers with outstanding loans were told just before Christmas that they would have their loans written off.
Meanwhile former customers of Amigo Loans owed cash will have to wait a year for compensation.
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