People who were sold loans they couldn't afford to pay back by Provident will get back less than 10% of what they are owed, it has been confirmed.
The lender has said redress payments will be capped at 4-6p per £1 owed by the company, meaning someone owed £500 will get back as little as £20. Borrowers eligible for the payment - which will be made in July - will have had to take out loans between April 2007 and 17 December 2020, which is the date Provident decided to set up a legal redress programme for mis-sold loans known as a 'scheme of arrangement'.
The announcement comes after a High Court judgment in August 2021, which granted Provident permission to cap total payouts at £50m. It's unclear how many borrowers will receive refunds, but Provident had 4.2 million customers in the period covered by the scheme.
