Sub-prime lender Provident Financial has revealed that its car finance division Moneybarn is being investigated by the regulator over how it assesses car-buyers for loans.
In a statement, Provident Financial said that the FCA's inquiry would look at "the processes applied to customer affordability assessments for vehicle finance, and the treatment of customers in financial difficulties."
It added: “The Provident Financial Group 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.”
Provident Financial's credit card division - Vanquis - is already being investigated by the FCA.
Shares in Provident have lost nearly 80% of their value since May this year.
An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
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