Provident Personal Loan Waiver?

smiley girl

Hello,
I have a question regarding a Provident Personal Loan. I know it wasn't the wised decision I ever made but it was all going great until money got tight, and then tighter and the repayments started to suffer. I arranged a smaller repayment with them last October. I was managing well but at Christmas I missed 3 weeks in a row. I am still repaying the smaller amount and the agent asked me would I sign a waiver to state I would continue paying this amount.

So basically my query is, if I signed this waiver and for some reason in the future that I can't make a repayment one week, what would happen. I plan on repaying them, of course I do, I want to get rid of them as soon as I can. But as we all know we can not see into the future.

I would gladly take any advice.

Thanks.

dobsdave

What does the waiver say? What advantage is it for you to sign it?
I've never heard of a waiver in regards to loan repayments.

I would be very wary of anything coming from a company like provident.

smiley girl

dobsdave wrote: »

What does the waiver say? What advantage is it for you to sign it?
I've never heard of a waiver in regards to loan repayments.

I would be very wary of anything coming from a company like provident.

I didn't read it yet, the agent is meant to be bringing it on Friday. As far as I can make out I have no advantage, Provident has it all. The agent said that it's 'just to say that you will be making the repayment of x amount every week'. I wonder if that means if I didn't make a repayment that they could take some sort of action against me??

dobsdave

Take it in and have a read over the weekend, dont rush into it no matter what is said to you by the agent.
Maybe put the gist of it up here for more advice?

Sulla Felix

A waiver usually entailed waiving something, usually a right. I'd read the document very, very carefully.

glic71rods46t0

Most likely they want to get you to sign up for a new loan which pays off the old loan but tops up the amount owed to pay the agent some "penalty interest" on the payments you missed.
While I would agree that you should try to get hold of the "waiver" and read it over the weekend, these Provident agents usually try pressure tactics to get you to sign without reading it.
Classic scenario is that they tell you how much trouble you're in for missing payments, then magically come up with the solution to make it all go away ..."just sign this" .... the pressure is immense as they are on your doorstep (or worse, in your sitting room) and all u want is for the agent to go away - which he will as long as you have signed the document (and added several hundred euro to your debt).
OP - can you go to your local CU and look for them to take on this debt and look for a settlement from Provident - this will be a much cheaper loan c.10% vs. 180% (rates vary but it will be a massive multiple of the CU rate)

liger

vw16e8lcgbnkq0 wrote: »

Most likely they want to get you to sign up for a new loan which pays off the old loan but tops up the amount owed to pay the agent some "penalty interest" on the payments you missed.OP -

Provident dont charge penalty interest, all interest is top loaded and if you take out a loan of X amount for 6months it costs the same to pay it back if you take 6months or 16months to clear it.

It sounds like the agent is just trying to get you to reafirm your commitment to pay seeing as you have missed a few weeks. The agent doesnt get paid his/her commision if you dont pay.

glic71rods46t0

liger wrote: »

Provident dont charge penalty interest, all interest is top loaded and if you take out a loan of X amount for 6months it costs the same to pay it back if you take 6months or 16months to clear it.

It sounds like the agent is just trying to get you to reafirm your commitment to pay seeing as you have missed a few weeks. The agent doesnt get paid his/her commision if you dont pay.

Refinancing the loan is penalty interest in all but name.
There would be no need for a waiver if there was no change to the contract so its rather naive to think that its something as benign as a reaffirmation of commitment to pay
You are right, on paper there is no penalty interest.However, the net effect of refinancing the loan is to increase the OP's exposure and, in effect, charge penalty interest in everything but name

PucaMama

The are just getting you to sign a form to say you are changing your repayment amount. Wouldn't a credit union or a bank do the same?

Fred Swanson

This post has been deleted.

PucaMama

Fred Swanson wrote: »

This post has been deleted.

but they do the exact same thing....

wmpdd3

Call it a loan agreement then,not a waiver.

I wouldn't sign it, if you are going to pay back the amount owed anyway, why do they need to call it anything else?

smiley girl

Thanks to you all, you're advice is priceless.
I've made my decision now. I am not going to sign anything, I'll just keep paying the repayments as discussed with the manager when I did reduce my repayments.
I'm not happy that the agent had to lose out on the commission but this is what I'm going to do, or rather not going to do.

Saucy McKetchup

Didn't want to post a new thread but also have a provident related question

I got a loan from them 3 months ago when it was needed,still owe a fair bit including interest payments, now I'm in a position to pay it all off in 1 lump sum, if I do should I be paying less interest, I still have 9 months left of payments.

PucaMama

wmpdd3 wrote: »

Call it a loan agreement then,not a waiver.

I wouldn't sign it, if you are going to pay back the amount owed anyway, why do they need to call it anything else?

Well it should be signed. The op signed an original contract with them. They must have known these things happen. Like all banks etc they have their own rules when it comes to these things

glic71rods46t0

Saucy McKetchup wrote: »

Didn't want to post a new thread but also have a provident related question

I got a loan from them 3 months ago when it was needed,still owe a fair bit including interest payments, now I'm in a position to pay it all off in 1 lump sum, if I do should I be paying less interest, I still have 9 months left of payments.

The interest would have been front loaded when u took out the loan. Ask them for a settlement figure. This should be a nice bit less than whats on the book.

Saucy McKetchup

She was just talking to the rep, it's going to be €50 less for paying it 6 months early

wmpdd3

Pay it off as soon as possible and put the €50 in the credit union!

Saucy McKetchup

wmpdd3 wrote: »

Pay it off as soon as possible and put the €50 in the credit union!

That's the plan, there'll be no more loans from provident anyway.