I'm a former Provident employee

[sgt_pancake]

Hi all,

 

Long time lurker, first time poster. I have used this site for good solid advice in the past and thought it was time to give something back.

 

Until last week I worked for Provident and this is an opportunity to ask a former employee anything. I left the company on good terms and am not using this as an excuse to throw mud at my former employer.

 

I will not disclose company secrets and I won't tell you how to get out of paying back a loan that you've taken out. Beyond that I'm happy to answer any questions you may have.

 

Oh, and I realise that this might look a little suspicious as I'm new to the forum, if any mods want proof that I am who I say I am, I'll be more than happy to provide it.

[Conniff]

... I won't tell you how to get out of paying back a loan that you've taken out.

 

That's what we like to hear, the site has never been about how to avoid paying back a legitimate debt.

 

Welcome SP

[wilko011178]

Hi

 

Story so far...

 

been a customer of provident and greenwoods for over 10 years. Alqays paid loans off in full and from memory always on time.

 

in november 2011 i took out 500 loan with provident (15 repayment per week over 60 weeks)

 

the following month took was offered and took 1,000 loan from greenwoods (20 a week over 104 weeks)

 

in feb 2012 took out 1000 loan with prov at 30 a week over 60 weeks.

 

followed with a final loan of 400 with greenwoods in april 12 (12.80 a week over 55 weeks)

 

So that was 2,900 paid out in less than 6 months with no credit checks or proper affordibility testing. Agents just popped by gave me the money and was just a case of me popping my signature onto the contract.

 

In hindsight this was hardly the proper way things should have been done!

 

So in total I had 5,504 to pay back at 311.20 every 4 weeks!!

 

still not paid everything back and defaulted a long time ago.

 

currently owing 1,600 so paid off 3,904 which is 1,000 more than was borrowed in total on the loans

 

manager calls by once a month and i pay what i can afford which has been 50 a month for last few months.

 

currently just short of 8 grand in debt to a total of 7 creditors

 

in view of fca's decision with wonga about the granting of loans which shouldnt have been offered in your opinion have I got a leg to stand on by arguing that the debt should be written off?

[BRIGADIER2JCS]

Hi

 

Story so far...

 

been a customer of provident and greenwoods for over 10 years. Alqays paid loans off in full and from memory always on time.

 

in november 2011 i took out 500 loan with provident (15 repayment per week over 60 weeks)

 

the following month took was offered and took 1,000 loan from greenwoods (20 a week over 104 weeks)

 

in feb 2012 took out 1000 loan with prov at 30 a week over 60 weeks.

 

followed with a final loan of 400 with greenwoods in april 12 (12.80 a week over 55 weeks)

 

So that was 2,900 paid out in less than 6 months with no credit checks or proper affordibility testing. Agents just popped by gave me the money and was just a case of me popping my signature onto the contract.

 

In hindsight this was hardly the proper way things should have been done!

 

So in total I had 5,504 to pay back at 311.20 every 4 weeks!!

 

still not paid everything back and defaulted a long time ago.

 

currently owing 1,600 so paid off 3,904 which is 1,000 more than was borrowed in total on the loans

 

manager calls by once a month and i pay what i can afford which has been 50 a month for last few months.

 

currently just short of 8 grand in debt to a total of 7 creditors

 

in view of fca's decision with wonga about the granting of loans which shouldnt have been offered in your opinion have I got a leg to stand on by arguing that the debt should be written off?

 

 

 

 

 

A clear case of irresponsible lending imo.

[warnerman]

I think people need to remember that not being able to pay back your loan doesn't automatically entitle you to get your interest back

or for your debt to be written off.

 

 

the story in the news is more so about that based on the information at the time of taking the loan

that it should have been obvious that it wasnt affordable for many reasons

 

 

such as not enough income for the amount borrowed

or a bad credit history that shows unlikely to pay back

or is already struggling with debts.

 

 

if your circumstances changed after you took out the loan

like change of job, became ill or became wreckless or unable to manage your money properly when you did before

and then defaulted on the loan that wouldnt count as it was not originally a bad lending decision.

[wilko011178]

That is a very fair point.. and to be fair they were taken out before I got embroiled in payday lender debts. I suppose ive only myself to blame for decisions made but I think lending without credit checks isnt good business practice.

[Jam_Buttie]

I'd hold off giving Stg Pepper any personal details until CAG can verify who they are.

[sgt_pancake]

Hi Wilko,

 

Sorry for the late reply.

 

2 questions for you.

 

1. Every time a new loan was issued

the agent should also have completed a separate form with you called the customer details form.

 

 

On that form is a (very very basic) income and expenditure statement that should have been completed

to assess your financial situation at the time of issue.

 

 

Do you remember doing this?

 

 

When loans are being issued over such a short period I have seen agents not recording the repayments

for previous issues on the form thus making your finances appear better than they actually are.

 

 

Up until very recently the Provy and Greenwoods agents would act completely autonomously of each other

so I would be interested to know if each agent recorded the repayments for the other brand?

 

2. I doubt it given the short period between the issues

but can I assume that when you were given all these loans you were given the full value in your hand?

i.e. the agent didn't use some of the balance to pay off a previous loan in an attempt to "manage" your weekly repayments.

 

Cheers

 

SP

[wilko011178]

Hi SP

 

I do recall agent moaning about all the new forms they had to fill out but for me all what happened was a very very brief conversation - how much rent do you pay, i cant evdn recall being asked about exiating debts. Nor do i recall being given a copy of the form he filled out.

 

As for paying off existing loans - no... all loans barring the april 2012 one still have outstanding balances so none of the borrowed money went towards paying anything off.

 

I feel very embarrased about being so stupid but when you have a gambling problem and you 'need' money its very easy to take whats been offered to you

[wilko011178]

Remember being told when i got £1000 that he 'wasnt allowed to do £1000 as one loan' so had to sign 2 separate loans at 500 each

 

clearly was just a money making scheme, there were no questions about why I even needed/wanted the money. I guess if was just a case of lending out as much as possible as the more you lend the more profit can be made

[sgt_pancake]

Two separate loans at £500 will cost exactly the same as one at £1000 in interest charges,

the reason they do this is to make refinancing easier further down the line.

 

 

The terms have changed slightly since you took your loans so I'll use the new ones for my example as I find them easier to work with.

 

 

This example isn't really helpful to your situation but it might serve as a warning for others looking to take out further credit with Provy.

 

Say you borrow £1000 over 63 weeks the cost is £30pw or or £1890 over the term,

a £500 over 63 weeks will cost £15pw or £945 over the term.

If after 35 weeks you are looking for more credit (or the local office is in the middle of a sales drive)

and you still owe £840 it makes it difficult to refinance you as the company would need to lend you at least £1600

(the minimum cash in hand percentage they must give without authorisation is 50%)

 

 

If however you have 2 loans of £500 you still technically owe £840 but there is only £420 outstanding on either loan

- the company can then refinance you with a loan of £850 thus putting up your rate less than if they'd refinanced you at £1600.

 

My suggestion to you would be to SAR them.

 

 

Get copies of all the CDF's that were completed at the time of issue.

 

 

Your best hope is if the existing loans were not recorded in the "all other loan repayments" field on the form.

 

 

Whilst I may have said that the agents acted autonomously of each other that wasn't because they had to,

frankly it was because they could

- the facilities have always been available for them to verify any amounts that you are already paying

to the company regardless of what brand the loan is with.

 

 

Should this be the case the company has not demonstrated responsible lending in my opinion

and somebody more knowledgeable than myself can tell you how to proceed.