The 'Provy'

[maxdebt]

I got an offer of credit this morning from Provident Personal Credit. ( £300, 56 weekly payments, APR a staggering 183.2%!) Casting my mind back( when I were but a nipper) I remember a gentleman used to come to our house once a week and my mum would give him money. Back then I asked my mum who he was and I am sure she said he was 'The Provy man' ( Glasgow circa early seventies )

Same company [?]

[Reviva UK]

same company

provideny personal finance - very high interest rates but their credit checks usually rely on you saying that you can afford to pay.

[maxdebt]

We're doing OK but I can see how an offer like this could be very tempting if you were struggling with an IVA payment. Something of course they are well aware of [}:)] Thanks Paul

[TREES57]

one of my creditors [:I] Very easy to get and when your in panic mode.....

[tigger]

Hi,

I recall my father once taking out a provident loan in the name of the family dog ! My brother and I found this hilarious until we found out that he'd taken out loans in all our family names (alive or deceased!). Was a rum sort my dad - didn't bother telling me that the house was being repossessed, just stood in my Gran's window (2 doors away) laughing as I struggled with the front door lock!

[Viki.W]

Jeez, tigger, I didn't know whether to laugh or cry when I just read your post there.

[size5]

To be fair, Provident are a long established company specialising in cash loans for those who may not be able to raise them elsewhere and they are not an insubstantial company. They regularly appear in the FTSE 100 index and I have seen times when they are in there and British Airways aren't!!

I could make a very strong case for saying that if every lender acted as responsibly as Provident try to then we wouldn't have such a massive problem with consumer debt. Whilst their APR's are horrific when taken in isolation, they have a long established policy of not overcomitting borrowers by having agents getting to know folk so that can guage earlier whether someone is a risk or not.

If you remember the old days when banks would not lend you money without a meeting with your branch manager, then the same principle applies, in theory at least, with the Provy, therefore far fewer people get in to the sort of mess that can be created by the "computer says yes to your new credit card/loan/overdraft" policy that the high street lenders have applied for years now.

I realise that this may sound like a defence of the Provy, but is isn't, merely an attempt to present a balanced view, the company itself provides a valuable, albeit very very expensive, service to those that choose to pay for that service.

Regards.

[chris.g]

Yup, I've had provy's and a the provy man used to call every week. Ridiculous the APR but they are targeted to the people who would other wise find it difficult to get credit.
Bit like Brighthouse and Crazy George's. I once worked out how much for a set of bunk beds(just out of curiousity) and it was 2.5 times more than the cash price......

[OPTIMIST12]

Are these "cash loans" actually paid and collected in CASH?? (Sorry if thats a daft question!!!). Does that mean that the man or lady from the company walks round with wads and wads of £20 notes on them? Must be a very dangerous job in some areas!!

[aguise]

Hi optimist. Yes they do more or less. I know you used to have a card years ago.I have never used them but they have been around for as long as I can remember and thats a fair time. A bit like secure homes used to as well I dont know if they do now, but I always used to think they were an easy target for criminals.

Ang

[maxdebt]

Are these "cash loans" actually paid and collected in CASH?? (Sorry if thats a daft question!!!). Does that mean that the man or lady from the company walks round with wads and wads of £20 notes on them? Must be a very dangerous job in some areas!!

I believe so! I just phoned my mum and she said back then ( Glasgow 60's ) just about everyone she knew paid the Provy man but she said the interest rate was a shilling in every pound! ( I can't count but I think there were 20 shillings in a pound so that's 5% yes?) and my mum said she got the money (usually £10) for shoes, coats, clothes etc and not foods or xmas pressies

[OPTIMIST12]

Thanks aguise and maxdebt.

I have received similar letters. I will certainly not be applying for a cash loan but at least the APR is printed in big letters together with an example of how long the debt would take to repay. So anyone applying can be in no doubts!!!! But I dont agree with sending letters like this to people in IVAs. It is not fair on people who may be in a difficult position and - in any event - we are not allowed credit in an IVA!!!!

[maxdebt]

My mum says one of her sisters ( my Aunt) still has the Provy man ( only it's a woman) coming to her door. I asked her about security and she says the Provy man was very much a friend of the community and she cannot remember any time when one of them was robbed or assaulted

[size5]

Chris G, you are right but is there any difference in paying 183% APR for a cash loan and paying £50 for a £20 on the High Street pair of shoes out of an "interest free" catalogue?

[emma_t]

These businesses are always going to exist and as long as they clearly lay out the interest rates I don't see the problem.

I have seen loads of these Bright House shops on many high streets lately and I suppose they charge so much interest as it is high risk lending.