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| Provident Financial issues new profit warning as boss quits | Provident Financial issues new profit warning as boss quits |
| (35 minutes later) | |
| Doorstep lender Provident Financial has issued its second profit warning in months. | Doorstep lender Provident Financial has issued its second profit warning in months. |
| It says it now expects to make losses of £80m to £120m as its debt collection rates have dropped to 57% compared with a previous rate of 90% in 2016. | It says it now expects to make losses of £80m to £120m as its debt collection rates have dropped to 57% compared with a previous rate of 90% in 2016. |
| Bradford-based Provident recently changed the way it collected its loans, replacing self-employed agents with "customer experience managers". | Bradford-based Provident recently changed the way it collected its loans, replacing self-employed agents with "customer experience managers". |
| Its chief executive, Peter Crooke, has resigned. | Its chief executive, Peter Crooke, has resigned. |
| Agent loss | |
| Provident had already flagged up problems with its new system in June. | |
| At the time, Provident said not enough of its self-employed debt collectors had applied to become employed by the company. | |
| It had also been less effective at collecting money and selling new loans, and a greater number of agents than normal had left. | |
| It said then it expected profits to be £60m at its consumer credit division. | |
| 'Very disappointed' | |
| The company is undertaking "a thorough and rapid review of home credit's performance", and will not now pay the interim dividend it promised just a month ago. | |
| Its other divisions - Vanquis Bank, sub-prime car loan business Moneybarn and consumer credit brand Satsuma - are trading in line with plans, it says. | |
| However, Vanquis has been under investigation by watchdog the Financial Conduct Authority, which had concerns about one of its products. | |
| The company agreed to suspend all sales and is awaiting the outcome of that probe. | |
| Manjit Wolstenholme, executive chairman who will also now act as chief executive, said: "I am very disappointed to have to announce the rapid deterioration in the outlook for the home credit business." | |
| She added that there was unlikely to be a full year dividend payout. |