THOUSANDS of borrowers paying within the same day and borrowing money through the door-to-door lending form have been cleared.
Anyone with an outstanding loan with Provident or Satsuma will not need to pay back what they owe.
Provident announced earlier this year that it has close the front door lending after nearly 150 years in business.
The payday online lending business of a lender called Satsuma has also been closed.
Since then, it hasn’t attracted new customers, but anyone who has existing loan still have to pay the debt.
Now, Provident and Satsuma customers with outstanding balances have been informed that they will no longer have to pay back the amounts they owe.
Both businesses will close for good at the end of the year and debt balances will be wiped to zero.
A Provident spokesperson said: “Provident Financial Group has informed Satsuma and home credit customers that as of December 15, it has ceased collecting payments from them and any outstanding debt. Customer’s payment has now been written off.
“Customer credit records are also being updated to show zero balances. PFG’s consumer credit department will close as planned on December 31, 2021.”
It is understood that tens of thousands of borrowers are affected by the write-off.
They will see their loan marked as resolved or partially resolved on their credit report and don’t have to do anything.
No refunds will be made after December 31, and anyone who pays after this date will receive a refund.
If your funds have been turned over to a debt collector on behalf of Provident or Satsuma, the loan will be written off.
But if your the loan was sold on to another company because you have fallen behind you still owe money and MUST keep paying.
Sara Williams’s DebtCamel debt counseling website, said: “This write-off is a nice Christmas surprise for Provident and Satsuma loan holders who are having a hard time repaying their loans.”
But customers with their certificates of debt should also still make a claim if they think they mistakenly sold a loan from Provident or Satsuma.
She said: “Everyone who has been through this write-off should now think about claiming the Pension Program.
“Balance clearing may be your top priority, but if your claim is upheld, any negative ticks on your credit record for Vendor and Satsuma loans inability to pay will be deleted.
“This might be worth more to you than getting some money back.”
Refunds for mis-sold loans
About 4 million customers could be in cash debt if they mis-sold a loan.
This happens to people who still have an outstanding debt that has now been written off and who paid it off – even years ago.
Anyone who borrowed from Provident or Satsuma between April 6, 2007 and December 17, 2020 may be eligible.
However, they need to claim cash and must apply until the end of February next year.
Customers who have borrowed from Greenwood or Glo, also operated by Provident, may also be owed cash.
To be repaid your loan must be deemed “insolvent” and the majority of claims against the Provider are upheld due to the lack of a proper affordability check.
A loan is only viable if you can repay it while still being able to pay all your usual bills and living expenses.
On the other hand, if your loan repayments mean you’re taking on more debt or defaulting on your debt, it’s likely to be insolvent.
The amount you get back will depend on how much you borrowed and for how long, as well as how many other people apply for a refund because there’s cash to hand out.
The cash will be sent out once the cashback program ends on February 28, 2022.
You can learn more about claiming if you think youmistakenly sold a Supplier or Satsuma loan in our guide.
You can owe thousands of pounds from other suppliers who mis-sold loans and other financial products.
Half a million Sunny short-term borrowers have had their credit records deleted last year on loans sold wrong.
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https://www.thesun.co.uk/money/17093539/payday-loan-doorstep-lending-debts-written-off-satsuma-provident/ Thousands of short-term loans and short-term loans written off for Satsuma and Provident customers