Monday, March 15, 2021 7:49 a.m.
Door-to-door lender Provident Financial today revealed that it is the subject of a Financial Conduct Authority (FCA) investigation into its mortgage lending business.
The survey will focus on “considering affordability and sustainability of loans to clients” within the division between February 2020 and February 2021.
Provident said he was aware of the need to respond to “increasing volumes of customer complaints” across the division.
He added that the number of complaints to the Financial Ombudsman Service (FOS) in the mortgage market increased by around 200% in the second half of 2020.
As part of its own review of the wing, Provident said it is working on a new client proposition.
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If approved, the lender said the program would “provide certainty for stakeholders and ensure that customers with a legitimate claim have fair access to reparation payments.”
It has set aside £ 50million to fund claims under the scheme and will also cover other related costs estimated at around £ 15million.
But if not approved, Provident said it was likely the division would go into liquidation or administration.
The FCA investigation is not expected to end until 2022.