Provident Plunges as FCA Starts Probe Into Car Finance Arm
- Subprime lender faces second investigation, shares down 20%
- Company says it’s working collaboratively with regulator
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Provident Financial Plc shares and bonds fell in London trading after the Financial Conduct Authority started an investigation into the subprime lender’s car finance division.
The FCA is examining Moneybarn “in relation to the processes applied to customer affordability assessments for vehicle finance and the treatment of customers in financial difficulties,” Bradford, England-based Provident Financial said in a statement on Tuesday. The “company will work collaboratively with the FCA.”