Doorstep lender Provident Financial said on Tuesday that a review of its consumer credit division (CCD) is nearing completion and the outcome will be announced with its full-year results next week.
The company was responding to media speculation that the loss-making business will be shut. Over the weekend, The Mail on Sunday reported that Provident will also close its online lending business, Satsuma, to focus on its credit card business, Vanquis Bank, and its car finance operation, Moneybarn.
“PFG notes the recent media coverage regarding the previously announced operational review of its Consumer Credit Division (CCD) including, as an option, the possibility of a managed run-off of its home credit and Satsuma businesses,” the company said.
“The group confirms that, whilst no decisions have been made, the review is nearing completion and the outcome will be announced with the group’s full year 2020 results, to be published on Monday 10 May.”
The Mail cited one source as saying that Provident is preparing to pull back from the market via a so-called ‘collect out’ plan, where it will try to claw back loans while winding down the entire operation.
