The Times has reported today that the FCA is investigating the car finance division of Provident Financial – Times commentary is below.  This should be a clarion call to all non standard HP providers to double check their credit worthiness and affordability checks.

Times commentary:

How much worse can it get for embattled shareholders in Provident Financial? In a brief stock exchange announcement this morning the subprime lender has given warning that the Financial Conduct Authority is investigating Moneybarn, its car finance division.

The regulator, Provident Financial says, is examining the processes applied to “customer affordability assessments for vehicle finance and the treatment of customers in financial difficulties”. Provident bought Moneybarn for £120 million in 2014.

Shares in Provident Financial topped £32.65 in May but have since fallen by 73 per cent after a botched restructuring of its core doorstep lending business triggered two mammoth profit warnings. The shares closed at 880p last night.

See the full article here: https://www.thetimes.co.uk/edition/business/financial-conduct-authority-investigates-moneybarn-lj7n98s3z

5th December 2017