Provident customers who were mis-sold loans will receive refunds from July - but only for less than 10% of what they’re owed.
The doorstep lender has confirmed that redress payments will be capped at just 4p to 6p per £1 owed for the fees and interest they were charged.
This applies to those who were mis-sold loans between April 2007 and December 17 2020 from Provident and its sub-brands Satsuma, Glo and Greenwood.
Provident Financial Group had around 4.2million customers during this period but is unclear how many will be due refunds, or what the average figure will be.
The loans company has capped the total refunds it will hand out at £50million under a system called a “scheme of arrangement”.
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It was granted permission to do this through a High Court ruling in August 2021.
To be eligible for a refund you must have taken out a loan in the period that was unaffordable.
This means you would be unable to repay the loan as well as your bills and living costs.
Have you received a payout from Provident? Let us know: mirror.money.saving@mirror.co.uk
Provident previously provided short-term, guarantor and doorstep loans but closed its doorstep lending business in May 2021.
It charged interest as high as 1,557.7% APR to borrowers.
What happens next?
Provident closed its claims portal in February 2022. This was for customers who believe they were mis-sold a loan before December 18, 2020.
Provident is starting to reply to customers who’ve already submitted a claim.
If you've already received a decision from Provident and you're not happy with it, you can ask for the independent "scheme adjudicator" to look into it. This must be done within 30 days of receiving the outcome.
You can contact the adjudicator via the online portal or by calling 0800 056 8936.
Those unhappy with their final response from Provident will not be able to escalate mis-selling complaints to the Financial Ombudsman Service.
If your complaint isn't about unaffordable lending, then you can still ask the Ombudsman to step in.
If you think you were mis-sold a loan on or after December 18, 2020, you can still complain to Provident via its helpline on: 0800 121 8034 or use its online complaints form.
If you’ve been previously sent a cheque by Provident, the lender has confirmed that it will still accept these, even if they are out of date.
Customers had been keeping hold of the cheques under the hope they may be entitled to more under the redress scheme.