Provident Personal Credit Ltd. (PPC) has reached a settlement with its regulator in the Republic of Ireland, the Central Bank of Ireland (Central Bank), in relation to breaches of legislation relating to certain moneylending practices. PPC has been reprimanded and paid a fine of €105,000.
In breach of s99 of the Irish Consumer Credit Act, 1995, 117 loans were issued by PPC’s Letterkenny branch between 2009 and 2012 where PPC failed to advance the full amount of the loan to the customers that it had entered into credit agreements with, some of the new loan being deducted and used to repay outstanding amounts on existing loans. The Central Bank also found that PPC had in place internal procedures and controls that could have denied certain customers their entitlement to pay off their outstanding loans early.
PPC regrets the contraventions and fully accepts the reprimand and fine from the Central Bank. Since the contraventions, which occurred last in October 2012, PPC has upgraded its procedures and control systems to significantly reduce the risk of this recurring.
Mark Stevens, Managing Director of Provident Personal Credit, said:
“Provident Personal Credit fully accepts the reprimand and fine of the Central Bank of Ireland and regrets the breaches of the Irish Consumer Credit Act in our Letterkenny branch. We have upgraded our procedures and compliance systems to significantly reduce the risk of such contraventions happening again.”