Provident - irresponsible lending? - HELP

[eatonsangel]

I have a problem with provident personal credit

 

could some one please help me?

 

I needed to pay some debts off,

 

so the not so friendly agent signed me up to about 2-3 thousand pounds in debt!

 

since then my income had drastically changed!

 

and I cant afford £300.00 per month.

 

my income is less than half it was,

 

I don't want it to go to a collection agency,

 

nor do I want to be listed as a bad debtor.

 

but im getting into a right state and making myself ill over this,

 

can some one please help me?

[dx100uk]

hi welcome along

 

were these existing debts are debts that the provi rep said you owed them and they were collecting for the original creditors?

 

dx

[eatonsangel]

Provident lady knew i had existing debts.

said my repayments to provident would be cheaper.

gave me the money i paid my debts.

 

at the time my monthly income was substantially higher and i could make these repayments.

 

now i don't even get 1/3 of the money,

 

but to be fair when loan was taken there was no security on that,

 

she included my dla which i no longer have.

 

so its not like i was working.

 

in fact shes helped to put me in twice as much debt

[dx100uk]

urm..thats not correct

 

and prob amounts to irresponsible lending

 

there is NO WAY

their int rate would be lower than you existing debts rates unless they are say payday loans.

 

dx

[eatonsangel]

I pay £72.00 per month to ace gifts and cards

I pay£70 per week to provident.

All other debts are gone now, that's why i am upset and don't want to go into bad debt now.

The provident lady split the money into two three separate loans as she said she couldn't do it all as one?

[dx100uk]

exactly

 

she did that because she KNEW legally she would not be able to do it one loan

 

that's atleast VERY irresponsible lending

and at worst I think illegal & prob makes the loan unenforceable.

 

she has very obv told a few untruths to get you to sign to these loans

esp the bit about better int rate.

 

 

 

i'll let the more knowledgeable one cross T's & I's in the morning.

[citizenB]

Hmm, yes this doesn't sound right at all.

 

Did she say why she had to split the loans ? Does she get commission on each loan ? Is there a limit on the value of a loan ? Did your credit history not permit one single loan value ?

 

Did she specifically say that by taking out these loans in order to consolidate debts, it would be cheaper ?

 

I don't think they are allowed to include benefits such as disability living allowance, are they ?

[BRIGADIER2JCS]

I'm certain that if any attempt was made to enforce these 'multiple' accounts Provident would fail, this is not only irresponsible lending I think you have been mislead as well.

 

I would think that the agent is in breach of Providents own lending guidance.

 

The inclusion of a benefit payment as proof of income is also unreliable I think.

[citizenB]

I wonder if a letter to their head office explaining the situation might help - from the agent advising the loan sales - the splitting of the loans and now your financial circumstances. If you could prepare an Income & Expenditure form showing your financial situation, they might be prepared to enter into a payment arrangement - I would be requesting they cease the addition of interest as well.

[filrobbo]

This sort of leaning is wrong they realy need to make a complaint and put all accounts in to dispute this will free all interest

[BRIGADIER2JCS]

This sort of leaning is wrong they realy need to make a complaint and put all accounts in to dispute this will free all interest

 

NOT necessarily!!

[filrobbo]

Ok well that's what I would of done.

[frustratedinc]

I used to be a provident agent when I was at university

 

I can tell you for definite that as long as you pay something each week they will NEVER take you to court or blacklist you.

 

As long as you pay an amount each week they stick with you.

 

Their interest rates are extortionate but you won't pay any extra for paying it off over a longer term as it is preloaded when you get the loan.

 

Make them an offer for what you can afford while you go through the unreasonable lending route.

 

Pay £50 per week instead of £300 and they will take no action.

 

I went through this hundreds of times with customers and always advised them of this.

 

You will take forever to pay the debt off but at least you can live while your doing so....

 

. Good Luck