Provident car loan unit to face FCA investigation

In a statement, Provident Financial Group said “it aims to act responsibly in all its relationships and to play a positive role in the communities it serves. The FCA granted Moneybarn authorisation to conduct consumer credit activities on 3 June 2016 and since that date, the FCA has continued to discuss certain processes with Moneybarn and Moneybarn has made a number of process improvements, including to the way it  deals with future loan terminations.”

“The Company will work collaboratively with the FCA to investigate the remaining concerns and resolve any outstanding related issues as soon as practicable.”

The turmoil at doorstep lender Provident Financial intensified today after the City watchdog launched a second inquiry into its lending activities.

The FCA is also examining activities at Vanquis Bank, also owned by Provident. Shares values decreased yesterday following the announcement.

Executive chairman Manjit Wolstenholme took over leadership of the business following Peter Crook’s resignation, but Wolstenholme passed away suddenly last month. Senior independent director Malcolm Le May is now steering the company as the board search for a new boss and chairman.