Thousands of payday loans and doorstep debt written off for Satsuma and Provident customers

Thousands of customers who have taken out payday loans and borrowed money on doorstep have been written off.

Anyone with an outstanding loan with Provident or Satsuma will no longer have to pay back their debts.

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Loans have been cleared for thousands – but millions of customers could owe a refundPhoto credit: Getty

Provident announced earlier this year that it is ceasing doorstep selling after nearly 150 years in business.

The company’s online payday lending business, Satsuma, has also closed.

Since then, it has not accepted any new customers, but those who had an existing loan still had to make repayments.

Now Provident and Satsuma customers with outstanding loans have been told that they no longer have to pay back their debts.

Both stores will be permanently closed by the end of the year and the outstanding balances will be cleared to zero.

A Provident spokesman said: “Provident Financial Group has notified home loan and Satsuma customers that they have been operating since Jan.

“Customer credit records are also updated to show a zero balance. PFG’s consumer credit division will be closed as planned on December 31, 2021. “

It is understood that tens of thousands of borrowers are affected by loan write-offs.

You will see your loan on your credit report as settled or partially settled and you don’t have to do anything.

No repayments will be made after December 31st and anyone who repays after that date will be given a refund.

If your money has been given to a collection company acting on behalf of Provident or Satsuma, the loan will be written off.

However, if your loan was sold to another company because you defaulted, you still owe the money and you MUST continue to make repayments.

Sara Williams from DebtCamel debt counseling site, said, “This write-off is a nice Christmas surprise for people on Provident and Satsuma loans who have had difficulty paying them back.”

But customers who have written off their debts should still file a claim if they believe they have mis-sold a Provident or Satsuma loan.

She said, “Anyone who has had this write-off should now consider making a claim on the Provident Scheme.

“Settling the balance may have been your top priority, but if your eligibility is upheld it will remove all negative marks on your Unaffordable Loan Borrowing from Provident and Satsuma.”

“That can be worth more to you than getting some money back.”

Cashback for badly sold loans

Around 4 million customers could be owed cash if they were mis-sold a loan.

This applies to those who still had an outstanding loan that has now been repaid and to those who have already paid it off – even many years ago.

Anyone who has taken out a loan with Provident or Satsuma between April 6, 2007 and December 17, 2020 could be eligible.

However, you have to claim the money and have until the end of February next year to apply.

Customers who had borrowed from Greenwood or Glo, also operated by Provident, could also be owed cash.

To be eligible for a refund, it must be determined that your loan is “unaffordable” and most complaints about Provident have been confirmed due to a lack of adequate affordability checks.

A loan is only affordable if you can make the repayments while paying all of your usual bills and living expenses.

On the flip side, if your loan repayments resulted in further debt or default on your payments, it was likely prohibitive.

How much you get back will depend on how much you’ve borrowed and for how long, as well as how many others request a refund, as a certain pot of cash can be spent.

The money will be paid out on February 28, 2022 after the refund program expires.

Check out our guide to learn more about how to file a claim if you think a Provident or Satsuma loan has been mis-sold.

You could be owed thousands of pounds from other sellers who mis-sold loans and other financial products.

Half a million Sunny payday loan customers had their credit records deleted last year due to badly sold loans.

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