Provident Personal Credit - Experian:

[Spa2007]

Hi. My first post.

I'm spitting blood I'm so angry!

I stupidly took out a door step loan with Provident Personal Credit.

This company is charging me 183% interest on a loan of £300.

I'm halfway through paying it off but, now I've found out that they've starting reporting this loan to the credit reference agencies!

I now have on my record a door step loan which will stay on my report for 6 years once settled!

This, I'm pretty sure, will affect me as what lender will now lend me money when they see that I had a door step loan!

I've worked really hard to clean up my credit report and then they go and ruin it for me!

I would never had taken this loan if they'd told me that they would report this to the credit reference agencies.

I need help please. Can they do this? Can I get them to stop reporting?

What they are doing is ensuring that I'll have to borrow from them again as no 'proper' lender will touch me now.

Please help.

Thanks.

[crazymom]

Have you defaulted on your loan? Just curious as to why they have done this to your CR?

[Spa2007]

Hi Crazymom,

Thank you for your response.

In answer no I'm completely up-to-date with payments and this is shown on my credit report.

They are simply reporting as would any lender.

I just don't want a door step loan on my credit report.

Thanks.

[crazymom]

Surely a door step loan showing on your CR shouldnt make any difference if you are up to date and havnt defaulted on the account, maybe im missing something here!

[Spa2007]

Thanks again for your reply.

I just don't want other lenders to see that I have / had a door step loan.

For 6 years (once this is settled) it'll still be on my report.

I might find it very difficult to get credit from 'legit' lenders because of this!

[Newborn]

Not sure that would be a problem. I think any prospective lender would be more interested in whether your record showed you repaid any debt as you had agreed to do.

Is there a particular reason why you took this route rather than going to your bank?

 

Newborn

[surprise]

I do agree about them reporting as the idea of paying such high interest is that there are no credit checks and no reporting to the CRA's. They did send out a letter regarding that they would be reporting to CRA's about 12 months ago.

 

Unfortunately, I don't see what you can do about it, just make sure that you don't miss a payment.

[crazymom]

As long as no default occurs then it wont flag up when you try to get other credit.

[Guest suziedarkness]

I have provident loans. I dont recall getting a letter stating that they were going to inform CRA's.

 

Surely they have to advise you of this before they do it, like when you apply for credit they always say that they may/will consult credit ref agencies and share information and you have to agree to that.

 

I have dealt with provident for last few years because it was convienient but they are a rip off. I have never been advised that they intended to share info and it doesnt say anything on their credit forms that you sign either.

 

I have already made a firm decision that I wont have anymore loans from them once I paid up, what they charge is unreasonable.

 

And yes sparkle, you are right, I was told by one of their managers when I first started dealing with them that the reason the interest is so high is because they take a gamble, they do not do any credit checks.

 

Im not sure they can get away with it. Maybe someone may know for sure.

 

Suzie

[gizmo111]

What did it say about sharing information on the original loan documents you signed?

[Guest suziedarkness]

Gizmo, It doesnt mention anything about sharing info.

 

Suzie

[surprise]

The letter came advising that they were going to start reported to the CRA's after my daughter signed her agreement. I remember reading and thinking at the time what a bloody cheek.

[Guest suziedarkness]

Was that recently Surprise? I can honestly say I have never had any letters from provident apart from the usual canvessing letters trying to get me to have more money.

 

I dont know how they can get away with that. I think I may call them tomorrow to see what they say.

 

Suzie

[ReasonableRon]

I'm afraid you've got the Competition Commission to blame for this.

 

The CAB made a complaint to the OFT earlier in the decade and they in turn referred it to the CC due to concerns about the difficulty customers had in switching between home credit providers.

 

One of the CC's solutions was to force each home credit company over a certain size to report their accounts to at least 2 CRA's. This became a requirement earlier this year.

[amdmlivingstone]

Hi Spa2007

 

I have 2 loans with the Prov. 1 is nearly finished and the other, well..... I've managed to miss some payments on.

 

I am currently going through a running battle with them. I have discovered that after 12 missed payments (which equals 3 months) your account then defaults and then they can place it on your credit report however, it won't show as a default, just missed payments.

 

I am arguing with them because most of the missed payments were due to their Agent not coming to my home. I also made numerous visits to my local office and made payments myself.

 

So in summary, if you have 12 missed payments they will inform the Credit Reference Agencies, but if you haven't missed any payments then there should not be an entry.

 

I'd give your local office a call and seriously complain. Write to them. In addition to this, call Experian and explain to them that you are in dispute with Provident. They will place their entry on dispute until the matter is closed.

 

I am requested that the remove their entry from my credit file.

 

Good luck and keep positing.

[tezzaa]

If I were to take out a loan with Provident and it appears on my Credit file will this really have any adverse affect on my ability to get credit in future?

[amdmlivingstone]

Hi Tezza

 

It won't appear on your credit file unless you have fall 12 payments behind. If you have falled behind and it is placed on your credit file then yes, it will reduce your credit score - I found this out (much to my horror).

 

I am behind due to my incompetant Agent so I'm trying to get it removed.

[Newborn]

I would think that, if the creditor was required by a change in the law to report to the CRAs, they would have been given sufficient notice to change their contracts to fit the law as well as properly informing current customers. See this press release:

 

30-Nov-2006 - Competition Commission Inquiry final report - Provident Financial

 

They would also have been given guidance surely on how to do this etc. Otherwise it would be unreasonable. If they did not do this then are the agreements valid?

 

Newborn

[amdmlivingstone]

Hi Newborn

 

Thank you for the link and your recent information. I have just finished drafting a letter to Provident however, I think I will change it to reflect the information provided by the Competition Commission. Since they did not inform me of any changes to their T&C's then this will no longer be valid.

 

Well, I can but try - SPA2007, I suggest to try writing to them as well.

[joneseyblod]

I thought that other lenders cannot see who you have had credit with, just type of credit, amount of credit and repayment history. Wouldnt Provident just show up as a loan?

[amdmlivingstone]

Good point Joneseyblod - I will look into this as well and post here for SPA2007's information.

 

SPA2007 - let us know if you find out any more information and let us know also how you are getting on.

[amdmlivingstone]

It has been confirmed that it will be shown as a 'home loan'.

 

Spa2007 - Any update?

[2Grumpy]

I'm afraid you've got the Competition Commission to blame for this.

 

The CAB made a complaint to the OFT earlier in the decade and they in turn referred it to the CC due to concerns about the difficulty customers had in switching between home credit providers.

 

One of the CC's solutions was to force each home credit company over a certain size to report their accounts to at least 2 CRA's. This became a requirement earlier this year.

Would the reporting be for new accounts or existing accounts?

 

I didn't think that this sort of change was retrospective

[amdmlivingstone]

Well, I've not received any new T&C's to confirm that I gave them my permission to contact a third party - Even a CRA.

 

Spa2007 - Did you receive anything?

[Violent_indie]

Have you defaulted on your loan? Just curious as to why they have done this to your CR?

 

Its now standard practice, they have to report to at least two of the credit reference agencies. Im sure someone has already said it mind you.

 

All that recieved regarding this was a little leaflet telling me what credit reference agencies do. I was never approached to sign anything giving my permission(i wouldnt do that anyways) and ive recieved no revised t&c's going to get on their backs once im done with natwest and rossendales.