THOUSANDS of consumers who took out payday loans and borrowed money through doorstep lending have had their debts wiped off.
Anyone with an outstanding loan with Provident or Satsuma will no longer desire to make repayments on what they owe.
Provident announced captured that it was closing its doorstep lending after nearly 150 years running a business.
The firm's online payday lending business, Satsuma, was also turn off.
Since it has not taken on new customers, but a person with an existing loan still had to make repayments.
Now, Provident and Satsuma customers with outstanding loans happen to be told they will no longer have to pay back money they owe.
Both businesses will close permanently after the year and outstanding balances will be wiped to zero.
A Provident spokesperson said: "Provident Financial Group has informed home credit and Satsuma customers that as of Dec 15, it's stopped collecting payments from them and then any outstanding customer loans are now wiped off.
"Credit records for customers are also being updated to show a zero balance. PFG's credit division will close as planned on December 31, 2023.”
It's understood that tens of thousands of borrowers are affected by the borrowed funds write-off.
They will see their loan marked as settled or partially chosen their credit report and don't need to do anything.
No more repayments is going to be taken after December 31 and anybody who makes a person after this date may have the money refunded.
If your money has been passed on to a collector acting on behalf of Provident or Satsuma, the loan is written off.
But if your loan continues to be in love with to a different company because you fell behind, you do still owe the money and MUST carry on making repayments.
Sara Williams of debt advice website DebtCamel, said: "This write-off is a fairly Christmas surprise to individuals with Provident and Satsuma loans who have been can not repay them."
But customers who've their debt written off also needs to still claim when they think these were mis-sold financing from Provident or Satsuma.
She said: "Everyone that has had this write off should now think about creating a claim that they can the Provident Scheme.
"Getting the balance cleared may have been your main concern, if your claim is upheld, any negative marks in your credit record for unaffordable Provident and Satsuma loans will be removed.
"This may be more vital for you than getting some money back."
Cash back for mis-sold loans
Around 4million customers could be owed cash if they were mis-sold a loan.
This applies to people who still had a superb loan that's now been wiped and those who have paid them back already – even a long time ago.
Anyone who took out a loan from Provident or Satsuma between April 6, 2007 and December 17, 2023 could be eligible.
They have to claim the money though, and have 'till the end of February next year to use.
Customers who took out loans from Greenwood or Glo, that have been also run by Provident, may be owed cash.
To obtain a refund the loan has to be discovered to be "unaffordable" and the majority of complaints about Provident were upheld due to a insufficient proper affordability checks.
A loan is just affordable if you could make the repayments whilst also paying all of your usual bills and bills.
On the other hand, if your loan repayments meant you'd to obtain further into debt or default on payments it was likely unaffordable.
How much you get back is determined by how much you borrowed as well as for just how long, in addition to the number of others obtain a refund as there is a set pot of money to give out.
The cash is going to be dished out following the refund scheme closes on February 28, 2023.
You can find out more about how you can claim if you think you were mis-sold a Provident or Satsuma loan in our guide.
You might be owed a lot of money from other providers who mis-sold loans along with other lending options.
Half a million Sunny payday loan customers had their credit file wiped this past year over mis-sold loans.