Provident, but perhaps less judicious

Provident, but perhaps less judicious

Provident Financial (PFG) bears a storied and respected name, but foresight or prudence are difficult attributes to apply to the subprime lender at present. After a botched restructuring of its doorstep lending operations, and a regulatory probe into ‘repayment option plans’ at its credit card business Vanquis Bank, now its motor finance arm Moneybarn – a small segment, but important to its long-term growth – has run into trouble. The Financial Conduct Authority (FCA) is knocking on the door again, and this time wants to thumb through Moneybarn’s customer affordability assessments and ask a few questions about how it has treated customers in financial difficulties.

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