'Old-style business' pays off for lender
PROVIDENT Financial, the doorstep lender, said yesterday its “old-fashioned banking” would lead to rising profits this year.
Chief Peter Crook said: “We do what the banks used to do.
“Our agents live in the same areas as our customers and see them every week. They know if they are struggling with bills.”
Crook said this close contact and the collapse of rival lenders has led to customer numbers rising four per cent in the third quarter. Its “cautious approach” in recession had also helped.
Crook said: “We have imposed stricter credit criteria and bad debts are more stable. If you have too much debt we turn away. We are on course for profitable growth this year.”
He said lending will be “tight” due to rising unemployment fears and added: “The economy is getting close to the bottom but we haven’t seen any signs of consumer recovery yet.”