Provident Financial

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This article is about the Bradford-based financial services group. For the now defunct Cincinnati-based financial services group of the same name, see National City Corp.
Provident Financial plc
Industry Financial Services
Founded 1880
Headquarters Bradford, West Yorkshire, UK
Key people
Manjit Wolstenholme, (Chairman)
Peter Crook,(CEO)
Products Credit cards
Home Collected Credit
Online loans
Consumer car finance
Revenue £1,183.2 million (2016)[1]
£343.9 million (2016)[1]
£262.9 million (2016)[1]
Provident Financial HQ (Left), Bradford, West Yorkshire

Provident Financial plc is a British sub-prime lender[2] based in Bradford, West Yorkshire. It specialises in credit cards, home collected credit (HCC), online loans and consumer car finance. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.[3]


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.[4] The Company was first listed on the London Stock Exchange in 1962.[5]

In 2002 Provident Financial formed Vanquis Bank Limited, with a full banking licence from the FSA, a consumer credit licence with the Office of Fair Trading and a licence 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 they would seldom be successful in obtaining a card from mainstream card issuers.[6]

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.[7]

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.[8] They required that the website Lenders Compared be set up, the costs of which was to borne by Provident and the other large operators.[9][10] In addition, all home credit operators were required to advertise the new site in documentation and advertisements and to offer customers regular statements.[11] 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).[12]

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.[13] 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.[14]

In 2007 it demerged its international business and a new separate public company was formed called International Personal Finance.[15] This company now holds all of Provident Financial's 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.[16]

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)'.[17]

In 2012 the company were the subject of an episode of the BBC documentary series Panorama, which alleged that the company were breaching Office of Fair Trading guidelines by offering loans to vulnerable people who may not have understood the implications of the contracts they were entering into. The programme featured two instances of people with mental illness who were given substantial loans, including a woman diagnosed with schizophrenia who was lent several thousand pounds. The company were criticised by the Citizen's Advice Bureau, whose chief executive told Panorama, "I call into question...the motivation to keep exploiting people who clearly can't be held responsible for their own decisions in that situation."[18]

In 2013, Provident launched its online short term loan Satsuma Loans.[19]

In 2014, Moneybarn was acquired by Provident Financial plc, joining the home credit and online credit businesses and Vanquis Bank to become the third leg of the group.[20]

The Central Bank of Ireland in late 2014 fined and reprimanded Provident for flagrant breaches of the regulatory requirements aimed at protecting Irish consumers.[21] The five whistleblowers who reported the law breaking were then sacked by Provident which led to the matter being raised in Dáil Éireann.[22]


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, Vanquis Bank is based in London with purpose-built premises located in Chatham, Kent and Moneybarn is based in Petersfield.[23]

The company's home credit business lends to people in their homes via a network of local agents. Out of an estimated three million people who borrow from home credit providers, one million place their business with Provident home credit, giving the company an estimated 60% market share as of 2013.[24]


  1. ^ a b c "Annual Results 2016" (PDF). Provident Financial. Retrieved 9 April 2017. 
  2. ^ "Meet the sub-prime lender that has just cracked the FTSE 100". Daily Telegraph. 26 December 2015. Retrieved 26 September 2016. 
  3. ^ "Provident Financial chases rewards where big banks fear to tread". Financial Times. 20 January 2016. Retrieved 26 September 2016. 
  4. ^ O'Connell, Sean, Credit and community: working class debt in the UK since 1880 (Oxford University Press, 2009)
  5. ^ "Provident Financial". London Stock Exchange. Retrieved 9 April 2017. 
  6. ^ "Vanquis Bank increases interest rates on top fixed rate savings accounts". Love Money. 16 July 2014. Retrieved 9 April 2017. 
  7. ^ OFT action on Home Collected Credit Super-complaint
  8. ^ Doorstep agents help Provident Financial ride out the credit storm, Financial Times, 29 December 2007.
  9. ^ "Poverty - The poor need a better deal from the banks". Parliamentary Brief. Retrieved 2011-12-08. 
  10. ^ "Lenders Compared: About this site". Retrieved 2 April 2015. 
  11. ^ OFT: Review of high cost credit
  12. ^ "Uncorrected Evidence m11". Retrieved 2 April 2015. 
  13. ^ "Write better papers, faster!". Retrieved 2 April 2015. 
  14. ^ Car finance glossary
  15. ^ Provident Financial puts £70m into demerger
  16. ^ "Provident Financial sells motor insurance arm to GMAC for £170m". Retrieved 2 April 2015. 
  17. ^ "Vanquis credit cards profit from 'new PPI'". 17 November 2011. 
  18. ^ "Doorstep lender gave 'thousands to schizophrenic woman'". Daily Telegraph. Retrieved 21 September 2016. 
  19. ^ Treanor, Jill (27 October 2013). "Provident Financial launches Satsuma loans at 792% APR". The Guardian. Retrieved 17 February 2015. 
  20. ^ "Provident Financial buys Moneybarn for £120m". FT. 14 August 2014. Retrieved 26 March 2016. 
  21. ^ "Central Bank is still failing us, despite all we've gone through". Irish Independent. 7 December 2014. 
  22. ^ "Call for Central Bank probe after Provident sacks 'whistleblowers'". Irish Independent. 17 June 2015. 
  23. ^ "Provident Financial lands £120 million deal". Telegraph and Argus. 14 August 2014. Retrieved 26 March 2016. 
  24. ^ Bond of the Week: Provident Financial issues another new retail bond Investors Intelligence, 15 March 2013, rendering the individual interest outside standard the protection of proper free enterprtise.

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