MONEYLENDER PROVIDENT IS writing off its Irish customers’ remaining debts as it moves to exit the market in the Republic.

The UK-owned company, the largest subprime lender operating in the State, announced in May that it will no longer offer loans to Irish and British borrowers after its parent company posted a £113.5 million loss for 2020.

Now, in a note posted on its website, the company has said it has formally stopped collecting payments.

“If you’ve an outstanding balance on your Provident loan(s), we’ve some good news for you,” the statement says.

“We stopped collecting payments at 9.30am on 28 June 2021. Any remaining balance you have after that date is now paid off. There are no more repayments to make to your Agent or Provident. This is because our loans business closes in Ireland on 1 July.”

For loans valued at over €500, the company said it will “update your credit record to show your balance has been cleared”.

“If your loan was less than €500, don’t worry as we didn’t put anything on your credit record when you took the loan.

Customers with amounts outstanding are advised not to make any further payments to Provident, “your agent or any other individual”.

“You can keep any money you were still due to repay, including the interest.

“If someone knocks at your door or calls you saying they are collecting repayments for a Provident loan, don’t give them any money,” the company has warned.

Credit unions

Meanwhile, Ireland’s credit unions are hoping to fill the gap in the lending market left by Provident.

In a statement this morning, the Irish League of Credit Unions (ILCU) has urged those affected by Provident’s exit to get in touch with their local credit union.

“With the withdrawal of Provident Personal Credit Limited (Provident)… credit unions are keenly aware that many of their existing and past customers will be affected,” the statement said. 

“If a person’s previous lender of choice… is exiting or has paused lending in the Irish market, they may wish to get in contact with their local credit union where they’ll receive a warm welcome.”