What Happens If You Can't Pay Your Satsuma Loan?
On this page we are going to look at what happens if you can’t pay your Satsuma loan back for any reason. We will look at any possible extra charges you might incur, additional interest and how to sort things out if you either miss a payment or simply can’t afford the repayments. If you have taken out a loan with Satsuma and are worried about what will happen to you if you miss one or more of the payments, then this page should give you all the information you need.
Satsuma loans are a product of Provident Personal Credit. Satsuma offer short term loans that are paid back on a weekly basis. You can borrow money over 13 weeks or over a longer term of 26 weeks. The repayments are taken from your debit card on a weekly basis and on a day of your choosing. The money is quickly paid into your bank account and everything is taken care of quickly. This is all well and good, but what happens if for any reason you don’t have the funds to make your repayments? Companies such as Wonga and other payday lenders add on extra charges and then additional interest, this gets people into real financial difficulties, is the same true of Satsuma loans?
Are There Hidden Charges With Satsuma?
So if something has gone wrong with your finances and you simply don’t have the money to make a repayment, will you incur hidden charges? The simple answer is no. This is where Satsuma differ from payday lenders, they will not charge you anything extra if you miss a payment. This is great news and makes Satsuma a very attractive lender as it takes much of the risk out of borrowing. Provident, the company behind these loans insist these are not payday loans and this is one of the main differences. This is one of their main marketing strategies, they claim to be the antidote to the payday loan.
If you agree to pay your loan back over 13 weeks and then for some reason it takes you 20 weeks to pay it back, you will not pay a penny extra in interest. You only pay back the amount you initially agree to. So there will be no nasty shocks when you get a statement through. If something does go wrong with your finances then you have no need to fear vast amounts of interest being added when you are not expecting it.
On the downside however, if you do miss payments or simply don't pay the loan back, then you will struggle to get credit in the future. Provident do share your payment history with other companies, so late payments or no payments at all will damage your credit rating. On the other hand, pay on time and this improves your credit rating and you can then apply for further loans in the future.
What To Do If You Miss A Payment
So if for any reason you do miss a payment, what should you do? Well the first thing to do is get in contact with customer support, the number for this is 0800 9640004. If you explain your position they can help you rearrange your payments and get back to paying regularly again. You also have the option to make a payment over the phone if you have missed a payment, this can get you right back up to date with your payments and thus back in line for future credit. The company are also looking at setting up online payments so this would be another option to consider.
If you are in real trouble and simply can’t afford the repayments, then again you need to get in contact with customer support. They will talk it over with you and then you may be able to get a reduced rate to make your payments over a longer period of time.
Another option that you have is that you can swap the day the money is taken from your debit card. If you get paid later in the week or you know you have money coming in on a certain day then you can simply ring up and switch days. This should not affect your credit rating with the company and as long as you keep up your repayments you should have no problems.
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Are Satsuma Loans Trustworthy?
All this business about never having to pay anything extra back could sound to good to be true, after all, other loan companies make huge profits by charging late fees and adding additional interest for late payments. Wonga are well known for this and are currently being investigated for unfair business practices. So, are Satsuma loans trustworthy or are they hiding something?
Well the good news is no, they are not hiding anything. Provident Personal Credit, the company behind Satsuma, have been lending money for over 100 years. This is the way that they have always conducted business. It is part of the reason why they charge more than some other lenders out there. They have to cover themselves for money lost on loans that are never paid back.
Provident are hoping that with this new breed of short term loan they can take on the big payday lender companies and find a gap in the market. People shy away from payday loans as they are worried about something going wrong and then having to pay back massive amounts. This will never happen with a loan from Satsuma. You pay back what you originally agree to and nothing more.
It will be interesting to see how well this new type of loan does in the very competitive lending market. With the big companies all suffering at the hands of financial investigations and masses of complaints, can Satsuma slide in and take advantage of a small gap in the market. One thing is for sure, if for any reason you do miss one of your payments, or can’t pay your loan back to Satsuma, you are not going to end up with masses of debt.
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