FCA warns retail banks over money laundering
July 27, 2021

High Court backs compensation for Provident customers

The company has set aside £50m to meet claims from borrowers who were sold unaffordable loans.

Customers will still not get all their money back.

However, the Court agreed to the scheme after the firm warned full payments would force it to go bust leaving many victims with nothing.

"We believed from the outset that the scheme was fair and that it offered the best outcomes for customers," said Malcolm Le May, chief executive officer of Provident.

He said the Court approval was "a positive outcome for customers with valid claims under the scheme, as it provides access to a redress payment which would not have been possible had the scheme not been approved."

Customers of doorstep lender Provident Financial can claim compensation for mis-sold loans after the High Court backed a partial repayment scheme