MARTIN Lewis’ MoneySavingExpert has revealed how thousands of borrowers can see their debts forgiven after this Christmas.
People who make short-term loans and borrow money through a door-to-door loan with Provident or Satsuma will have deleted debts at the end of the year.
It’s seen as a clean welcome vehicle for many people who will be splashing money during the festive season, and often finds January a rough month with long and looming lines of bills and direct debits. .
Provident and Satsuma have supported Britons in need by providing short-term loans, guarantors and prepaid loans, with interest rates up to 1,557.7% APR in some cases.
They used to offer loans from a minimum of £100 to a maximum of £1,000.
But after being stoned for mis-selling mis-granted loans, the vendors will close permanently by the end of the year.
Martin himself calls loans a “wrong concept“in the MoneySavingExpert guide, as many will fall down a slippery slope and owe more.
Money experts on Martin Lewis’ Savings Group reminds borrowers that they can still file claims for those missold loans, but it’s a race against time before the providers shut down.
Provident announced in May of this year that it has Closed lending at the front door after nearly 150 years of business – with Satsuma’s involvement, shutting down the company’s payday online lending business.
Since then, it hasn’t attracted new customers, but anyone who has existing loan still have to pay the debt.
But now Martin Lewis’ team of experts has reminded Provident and Satsuma customers with outstanding debts that they won’t have to pay back any money they owe.
If you still owe your loan, the amount will be set to 0 by December 31.
It also means that the loan will also be partially repaid on that date.
So any payment you make after New Year’s Eve will just bounce and be refunded to you.
However, the MoneySavingExpert team advises it is best to cancel direct debits set to move out after this date, in case of any problems.
It’s a different story if you the loan was sold on move to another company because you’re falling behind – you still owe money and MUST keep paying, so keep this in mind so you don’t get stuck.
How can I claim a wrongly sold loan, and how long do I have?
Anyone who took out a loan from Provident or Satsuma between April 6, 2007 and December 17, 2020 may be eligible to claim loan sold wrong from suppliers.
But the deadline to file a complaint is February 28 next year, which sounds like a long way, but it’s only two months away.
The MoneySavingExpert team says it’s best to receive your complaint as soon as possible in case any problems arise when you submit your claim.
Up to 4 million customers could be in cash debt after mistakenly selling a loan.
The amount you get back will depend on how much you borrowed at first and how long you borrowed.
In order to be repaid your loan must be deemed “non-repayable”.
The provider gets most of the claims due to the lack of proper affordability checks so for many this will be the case..
A loan is only viable if you can repay it while still being able to pay all your usual bills and living expenses.
But if paying back your loans means you’ll continue to be in debt, that can also be considered insolvency.
You can Sign up to claim online, but remember to do so by the closing date.
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https://www.thesun.co.uk/money/17124047/martin-lewis-borrowers-debts-cleared-after-christmas/ Martin Lewis reveals how thousands of Satsuma and Provident borrowers could see their debts forgiven after Christmas