Provident Financial nears decision on doorstep lending

Bradford-based subprime lender Provident Financial plc (PFG) said on Tuesday its review of its Consumer Credit Division (CCD) — a door-to-door lending business — is nearing completion.

The announcement follows London newspaper speculation that Provident Financial is planning to close the business after 141 years to focus on its credit card and car finance businesses.

PFG notes the recent media coverage regarding the previously announced operational review of its Consumer Credit Division (CCD) including, as an option, the possibility of a managed run-off of its home credit and Satsuma businesses,” said PFG in a stock exchange statement.

The group confirms that, whilst no decisions have been made, the review is nearing completion and the outcome will be announced with the group’s full year 2020 results, to be published on Monday 10 May.”

On March 15, Provident Financial shares fell after it announced it was being investigated by the UK’s Financial Conduct Authority (FCA) and it said it may have to put its consumer credit division (CCD) into administration or liquidation due to the volume of customer complaints.

The company outlined a £65 million plan to settle the complaints against its CCD business and warned the unit could collapse if the scheme was not approved.