0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 2 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Provident could be facing a £300m payout

Provident Financial Group could face a payout of £300m, according to stock analysts from the Europe division of Royal Bank of Canada.


Amber-Ainsley   Pritchard

Share on LinkedInShare on Twitter
Amber-Ainsley   Pritchard
Share on LinkedInShare on Twitter

The analysts said the payout would emerge from requirements around customer redress, regulatory penalties and administration costs for the mis-selling of a product by one of Provident’s businesses.

 

To recap, the home credit provider has endured the following setbacks, among others, in just the past two months since its troubles were first revealed on August 22:

  • Announcing that losses could reach £120m this year;
  • Losing its experienced chief executive Peter Crook;
  • Losing staff after changing its operational structure, to full-time agents, from self-employed teams;
  • Dropping out of the FTSE 100;
  • Announcing publicly an FCA investigation into Vanquis Bank’s repayment option plan, which offers payment holidays to customers in return for fees.

The mis-sold product referred to is the repayment option plan by Vanquis Bank – the analysts compared this to the mis-selling of PPI.

 

Analysts have also recommended Provident shares will underperform and are not investible until greater clarity is received, which they said is not likely to be until next year at the earliest.

 

They said: “Provident’s financial deterioration is rapid and it remains questionable whether the company’s issues are anywhere near under control.”

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group