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Provident Financial

Provident Financial plc
Public
(LSE: PFG)
Industry Finance
Founded 1880
Headquarters Bradford, West Yorkshire, UK
Key people
Manjit Wolstenholme, (Chairman)
Peter Crook,(CEO)
Products

Vanquis Bank: [1] Provident home credit: [2] Satsuma Loans: www.satsuma loans.co.uk, glo: www.glo.co.uk

Moneybarn: [3]
Revenue £1,075.7 million (2014)[1]
£224.6 million (2014)[1]
£175.6 million (2014)[1]
Website www.provident financial.com
Provident Financial HQ (Left), Bradford, West Yorkshire

Provident Financial plc is a British financial services group based in Bradford, West Yorkshire. It specialises in credit cards, Home Collected Credit (HCC) and consumer car finance. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Contents

  • History 1
  • Operations 2
  • References 3
  • External links 4

History

The Company was established in Bradford in 1880 by Joshua Kelley Waddilove to provide affordable credit to families in West Yorkshire. The company's credit methods were rapidly popularised amongst the working classes, but from its outset The Provident was subjected to criticisms by those who were opposed to consumer credit or the costs associated with doorstep credit.[2] The Company was first listed on the London Stock Exchange in 1962. In 1997 it extended its operations to Poland and the Czech Republic, later operating in Slovakia, Hungary, Romania and Mexico.

In 2002 Provident Financial formed Vanquis Bank Limited, with a full banking license from the FSA, a consumer credit license with the Office of Fair Trading and a license from VISA International to operate and issue credit cards under the VISA brand. Vanquis Bank Limited specialises in the pre-paid credit card sector, enabling people to use the benefits of a credit card where normally due to their credit profile would seldom be successful in obtaining a card from mainstream card issuers.

In June 2004, the Office of Fair Trading referred a Super-Complaint from the National Consumer Council expressing their concern over a perceived lack of competitiveness in the home credit industry, particularly as the four largest operators accounted for around 70% of the business in the home-collected credit industry. The Office of Fair Trading published a consultative paper which echoed this concern about the concentration of market share and referred the case to the Competition Commission.[3]

Although the Competition Commission's conclusion confirmed high levels of satisfaction among customers who found home credit products well suited to their needs, they believed that measures should be implemented to make the sector more open and transparent.[4] They required that the website Lenders Compared be set up, the costs of which was to borne by Provident and the other large operators.[5][6] In addition, all home credit operators were required to advertise the new site in documentation and advertisements and to offer customers regular statements.[7] The Commission rejected the concept of price caps, recognising that home credit is valued by many customers and did not believe that it would help customers if home credit were less available as a result and the potential of people then turning to unlicensed lenders (loan sharks).[8]

In 2005, the company closed its Yes Car Credit business, which had sold second hand vehicles to customers with problematic credit histories via a national network of retail locations, offering the vehicle and finance as a single package.[9] The company had been plagued by bad publicity, including a TV investigation into its selling practices, pressurisation of staff, unreliable vehicles and debt collection methods.[10]

In 2007 it demerged its international business and a new separate public company was formed called International Personal Finance.[11] This company now holds all of Provident Financials ex-non-UK operations, with the exception of the Republic of Ireland. It also sold the motor insurance business leaving Provident Financial to concentrate on UK only financial products.[12]

In 2011, Vanquis were criticised for offering Repayment Option Plans to their credit card customers, a form of insurance some consumer sites referred to as the 'new Payment protection insurance (PPI)'.[13]

In 2013 Provident launched its online short term loan Satsuma Loans.[14]

In 2014, Moneybarn was acquired by Provident Financial plc, joining the home credit business and Vanquis Bank to become the third leg of for the group.

The Central Bank of Ireland in late 2014 fined and reprimanded Provident for flagrant breaches of the regulatory requirements aimed at protecting Irish consumers.[15] The 5 whistleblowers who reported the law breaking were then sacked by Provident which lead to the matter been raised in Dail Eireann.[16]

Operations

In the UK, Provident Financial trades under a number of different brands, including Vanquis for its credit cards, Provident Personal Credit for its home credit operations, Satsuma for its online instalment loans, glo for its guarantor loans and Moneybarn for its vehicle finance operations. The home lending operations are based in the head office building on Godwin Street in Bradford and Vanquis Bank is based in London with purpose built premises located in Chatham, Kent. Real Personal Finance became a trading style of Provident Personal Credit, offering direct debit loans rather than the traditional home collected credit; the venture proved to be unprofitable and the RPF product was withdrawn in February 2010.

The company's home credit business lends to people in their homes via a network of local agents. Out of an estimated 3 million people who borrow from home credit providers, 1.0 million place their business with Provident home credit, giving the company an estimated 60% market share.[17]

References


-- Module:Hatnote -- -- -- -- This module produces hatnote links and links to related articles. It -- -- implements the and meta-templates and includes -- -- helper functions for other Lua hatnote modules. --


local libraryUtil = require('libraryUtil') local checkType = libraryUtil.checkType local mArguments -- lazily initialise Module:Arguments local yesno -- lazily initialise Module:Yesno

local p = {}


-- Helper functions


local function getArgs(frame) -- Fetches the arguments from the parent frame. Whitespace is trimmed and -- blanks are removed. mArguments = require('Module:Arguments') return mArguments.getArgs(frame, {parentOnly = true}) end

local function removeInitialColon(s) -- Removes the initial colon from a string, if present. return s:match('^:?(.*)') end

function p.findNamespaceId(link, removeColon) -- Finds the namespace id (namespace number) of a link or a pagename. This -- function will not work if the link is enclosed in double brackets. Colons -- are trimmed from the start of the link by default. To skip colon -- trimming, set the removeColon parameter to true. checkType('findNamespaceId', 1, link, 'string') checkType('findNamespaceId', 2, removeColon, 'boolean', true) if removeColon ~= false then link = removeInitialColon(link) end local namespace = link:match('^(.-):') if namespace then local nsTable = mw.site.namespaces[namespace] if nsTable then return nsTable.id end end return 0 end

function p.formatPages(...) -- Formats a list of pages using formatLink and returns it as an array. Nil -- values are not allowed. local pages = {...} local ret = {} for i, page in ipairs(pages) do ret[i] = p._formatLink(page) end return ret end

function p.formatPageTables(...) -- Takes a list of page/display tables and returns it as a list of -- formatted links. Nil values are not allowed. local pages = {...} local links = {} for i, t in ipairs(pages) do checkType('formatPageTables', i, t, 'table') local link = t[1] local display = t[2] links[i] = p._formatLink(link, display) end return links end

function p.makeWikitextError(msg, helpLink, addTrackingCategory) -- Formats an error message to be returned to wikitext. If -- addTrackingCategory is not false after being returned from -- Module:Yesno, and if we are not on a talk page, a tracking category -- is added. checkType('makeWikitextError', 1, msg, 'string') checkType('makeWikitextError', 2, helpLink, 'string', true) yesno = require('Module:Yesno') local title = mw.title.getCurrentTitle() -- Make the help link text. local helpText if helpLink then helpText = ' (help)' else helpText = end -- Make the category text. local category if not title.isTalkPage and yesno(addTrackingCategory) ~= false then category = 'Hatnote templates with errors' category = string.format( '%s:%s', mw.site.namespaces[14].name, category ) else category = end return string.format( '%s', msg, helpText, category ) end


-- Format link -- -- Makes a wikilink from the given link and display values. Links are escaped -- with colons if necessary, and links to sections are detected and displayed -- with " § " as a separator rather than the standard MediaWiki "#". Used in -- the template.


function p.formatLink(frame) local args = getArgs(frame) local link = args[1] local display = args[2] if not link then return p.makeWikitextError( 'no link specified', 'Template:Format hatnote link#Errors', args.category ) end return p._formatLink(link, display) end

function p._formatLink(link, display) -- Find whether we need to use the colon trick or not. We need to use the -- colon trick for categories and files, as otherwise category links -- categorise the page and file links display the file. checkType('_formatLink', 1, link, 'string') checkType('_formatLink', 2, display, 'string', true) link = removeInitialColon(link) local namespace = p.findNamespaceId(link, false) local colon if namespace == 6 or namespace == 14 then colon = ':' else colon = end -- Find whether a faux display value has been added with the | magic -- word. if not display then local prePipe, postPipe = link:match('^(.-)|(.*)$') link = prePipe or link display = postPipe end -- Find the display value. if not display then local page, section = link:match('^(.-)#(.*)$') if page then display = page .. ' § ' .. section end end -- Assemble the link. if display then return string.format('%s', colon, link, display) else return string.format('%s%s', colon, link) end end


-- Hatnote -- -- Produces standard hatnote text. Implements the template.


function p.hatnote(frame) local args = getArgs(frame) local s = args[1] local options = {} if not s then return p.makeWikitextError( 'no text specified', 'Template:Hatnote#Errors', args.category ) end options.extraclasses = args.extraclasses options.selfref = args.selfref return p._hatnote(s, options) end

function p._hatnote(s, options) checkType('_hatnote', 1, s, 'string') checkType('_hatnote', 2, options, 'table', true) local classes = {'hatnote'} local extraclasses = options.extraclasses local selfref = options.selfref if type(extraclasses) == 'string' then classes[#classes + 1] = extraclasses end if selfref then classes[#classes + 1] = 'selfref' end return string.format( '
%s
', table.concat(classes, ' '), s )

end

return p-------------------------------------------------------------------------------- -- Module:Hatnote -- -- -- -- This module produces hatnote links and links to related articles. It -- -- implements the and meta-templates and includes -- -- helper functions for other Lua hatnote modules. --


local libraryUtil = require('libraryUtil') local checkType = libraryUtil.checkType local mArguments -- lazily initialise Module:Arguments local yesno -- lazily initialise Module:Yesno

local p = {}


-- Helper functions


local function getArgs(frame) -- Fetches the arguments from the parent frame. Whitespace is trimmed and -- blanks are removed. mArguments = require('Module:Arguments') return mArguments.getArgs(frame, {parentOnly = true}) end

local function removeInitialColon(s) -- Removes the initial colon from a string, if present. return s:match('^:?(.*)') end

function p.findNamespaceId(link, removeColon) -- Finds the namespace id (namespace number) of a link or a pagename. This -- function will not work if the link is enclosed in double brackets. Colons -- are trimmed from the start of the link by default. To skip colon -- trimming, set the removeColon parameter to true. checkType('findNamespaceId', 1, link, 'string') checkType('findNamespaceId', 2, removeColon, 'boolean', true) if removeColon ~= false then link = removeInitialColon(link) end local namespace = link:match('^(.-):') if namespace then local nsTable = mw.site.namespaces[namespace] if nsTable then return nsTable.id end end return 0 end

function p.formatPages(...) -- Formats a list of pages using formatLink and returns it as an array. Nil -- values are not allowed. local pages = {...} local ret = {} for i, page in ipairs(pages) do ret[i] = p._formatLink(page) end return ret end

function p.formatPageTables(...) -- Takes a list of page/display tables and returns it as a list of -- formatted links. Nil values are not allowed. local pages = {...} local links = {} for i, t in ipairs(pages) do checkType('formatPageTables', i, t, 'table') local link = t[1] local display = t[2] links[i] = p._formatLink(link, display) end return links end

function p.makeWikitextError(msg, helpLink, addTrackingCategory) -- Formats an error message to be returned to wikitext. If -- addTrackingCategory is not false after being returned from -- Module:Yesno, and if we are not on a talk page, a tracking category -- is added. checkType('makeWikitextError', 1, msg, 'string') checkType('makeWikitextError', 2, helpLink, 'string', true) yesno = require('Module:Yesno') local title = mw.title.getCurrentTitle() -- Make the help link text. local helpText if helpLink then helpText = ' (help)' else helpText = end -- Make the category text. local category if not title.isTalkPage and yesno(addTrackingCategory) ~= false then category = 'Hatnote templates with errors' category = string.format( '%s:%s', mw.site.namespaces[14].name, category ) else category = end return string.format( '%s', msg, helpText, category ) end


-- Format link -- -- Makes a wikilink from the given link and display values. Links are escaped -- with colons if necessary, and links to sections are detected and displayed -- with " § " as a separator rather than the standard MediaWiki "#". Used in -- the template.


function p.formatLink(frame) local args = getArgs(frame) local link = args[1] local display = args[2] if not link then return p.makeWikitextError( 'no link specified', 'Template:Format hatnote link#Errors', args.category ) end return p._formatLink(link, display) end

function p._formatLink(link, display) -- Find whether we need to use the colon trick or not. We need to use the -- colon trick for categories and files, as otherwise category links -- categorise the page and file links display the file. checkType('_formatLink', 1, link, 'string') checkType('_formatLink', 2, display, 'string', true) link = removeInitialColon(link) local namespace = p.findNamespaceId(link, false) local colon if namespace == 6 or namespace == 14 then colon = ':' else colon = end -- Find whether a faux display value has been added with the | magic -- word. if not display then local prePipe, postPipe = link:match('^(.-)|(.*)$') link = prePipe or link display = postPipe end -- Find the display value. if not display then local page, section = link:match('^(.-)#(.*)$') if page then display = page .. ' § ' .. section end end -- Assemble the link. if display then return string.format('%s', colon, link, display) else return string.format('%s%s', colon, link) end end


-- Hatnote -- -- Produces standard hatnote text. Implements the template.


function p.hatnote(frame) local args = getArgs(frame) local s = args[1] local options = {} if not s then return p.makeWikitextError( 'no text specified', 'Template:Hatnote#Errors', args.category ) end options.extraclasses = args.extraclasses options.selfref = args.selfref return p._hatnote(s, options) end

function p._hatnote(s, options) checkType('_hatnote', 1, s, 'string') checkType('_hatnote', 2, options, 'table', true) local classes = {'hatnote'} local extraclasses = options.extraclasses local selfref = options.selfref if type(extraclasses) == 'string' then classes[#classes + 1] = extraclasses end if selfref then classes[#classes + 1] = 'selfref' end return string.format( '
%s
', table.concat(classes, ' '), s )

end

return p
  1. ^ a b c
  2. ^ O'Connell, Sean, Credit and community: working class debt in the UK since 1880 (Oxford University Press, 2009)
  3. ^ OFT action on Home Collected Credit Super-complaint
  4. ^ Doorstep agents help Provident Financial ride out the credit storm, Financial Times, 29 December 2007.
  5. ^
  6. ^
  7. ^ OFT: Review of high cost credit
  8. ^
  9. ^
  10. ^ Car finance glossary
  11. ^ Provident Financial puts £70m into demerger
  12. ^
  13. ^ Vanquis credit cards profit from 'new PPI' choose.net, 17 November 2011
  14. ^
  15. ^
  16. ^
  17. ^ Bond of the Week: Provident Financial issues another new retail bond Investors Intelligence, 15 March 2013

External links

  • Provident Financial - Official site
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