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U.K. Subprime Lender Plunges More Than 70%

  • U.K. subprime loan provider says full-year dividend unlikely
  • Loss expected after technology-based sales revamp backfired
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Bloomberg Intelligence’s Jonathan Tyce discusses problems at Provident Financial. He speaks with Mark Barton on 'Bloomberg Markets.' (Source: Bloomberg)

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Provident Financial Plc’s shares and bonds tumbled after the British subprime lender forecast a full-year loss and revealed it’s being probed by regulators. Chief Executive Officer Peter Crook stepped down.

The U.K. Financial Conduct Authority is investigating the Vanquis Bank credit-card unit, and the regulator had previously ordered Provident to stop offering a particular repayment product, the company said Tuesday. Provident scrapped its interim dividend and said a full-year payout is also unlikely. Manjit Wolstenholme will temporarily run the firm as executive chairman.