Irresponsible lending and unaffordable loans.

Before a creditor, such as a loan company or mortgage lender, can lend you money they must take steps to ensure you can afford to pay it back. They do this by running an affordability check. If they lend you more than you can afford to repay, you can make a complaint against them for irresponsible lending.

Some High-cost and Guarantor loan companies such as Provident and Amigo are being investigated for irresponsible lending and are now under a scheme of arrangement. Take Provident as an example.

The Provident Scheme was implemented on 27 August 2021 and the Claims submission deadline passed on the 28^th of February at 5pm. No more claims are being accepted.

The relevant loans are loans provided by any of Provident, Satsuma, Glo or Greenwood (a Lender) between 6 April 2007 and 17 December 2020 (inclusive). So, if you have not yet submitted your claim against this lender, you already missed your chance.

This is one of the reasons why we encourage creditors to file their compensation claims early.

On the other hand, Amigo are still undergoing trial on their proposed scheme of arrangement. You can get more information about this arrangement on their website.

What's in it for you if you file a compensation claim?

* Chance of getting a cash redress

* If you have an existing loan, you may get it all or some written off

* If the claim is rejected, we can help you progress to the Financial Ombudsman Service

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