Consumer credit

The Consumer Credit Division (CCD) specialises in the provision of loans to people in the non-standard credit market.

Chris Gillespie
Managing Director, Provident home credit

CCD specialises in the provision of personal credit products for consumers in the non-standard lending market, through our two brands – Provident and Satsuma Loans.

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0.79m

Customers

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1,925

Employees

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£100 - £2k

Loan range

How the Consumer Credit Division works

The Consumer Credit Division operates a business model based on a common approach, but adapted to closely suit the needs of non-standard consumers in the home credit and online loan markets.

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How we do it

  • Over 137 years of experience with home credit. Nationwide coverage.
  • All our Customer Experience Managers (CEMs) using smartphones to conduct their round.
  • Every week our CEMs visit the majority of our 731,000 customers to issue loans and collect repayments.
  • Staff in branches across the business using technology effectively.

What we do

  • Simple cash-based loans that come to the customer with nothing extra to pay, ever, no matter what happens.
  • Skill and judgement of CEMs increasingly bolstered by sophisticated affordability assessment and credit scoring systems.
  • Weekly personal assessment of all customer situations and forbearance where necessary at no extra cost to the customer whatsoever.

How value is created

  • Financial inclusion and in-built discipline and control for all customers.
  • Help for customers coping with cost of living pressures while wages remain subdued.
  • Improving quality of book as customer numbers fall.
  • Stable returns in a mature market.
  • Very high customer satisfaction.

More about Provident

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How we do it

  • Long experience with non-standard customer needs as they move on from home credit.
  • Understanding of the fundamentals of lending that work for customers from home credit experience (small manageable payments, no penalties and transparent pricing).
  • Prices that are below the high-cost short-term credit (HCSTC) price cap from the outset.

What we do

  • Simple online loans with manageable payments and nothing extra to pay, ever, no matter what happens.
  • Close contact from the outset with a representative on the phone whenever a customer needs to talk to somebody.
  • Sophisticated credit scoring and affordability systems using a range of data sources to aid a responsible and sustainable ‘low and grow’ approach to lending.
  • No fees, charges or added interest whatsoever, along with forbearance when needed and a personal approach to online lending.

How value is created

  • Better outcomes for customers, helping them to manage their tight budgets.
  • Lending that is far better suited to non-standard customer needs than typical online and ‘payday’ lending.
  • For customers for whom the home credit market is not suitable, a responsible and sustainable alternative to typical ‘payday’ and ‘payday-style’ lending and lender practices.
  • Strong growth opportunity in a market with large demand, poorly served by mainstream lenders and increasingly constrained ‘payday’ lenders.

More about Satsuma

Consumer credit regulation

United Kingdom

In the UK, the provision of credit is governed by the terms of the Consumer Credit Act 1974 (as amended) and associated regulations, along with the rules of the Financial Conduct Authority (FCA) and guidance made under them. The Act and the FCA rules lay out detailed requirements and compliance is monitored by the FCA. Complaints can be taken to the Financial Ombudsman Service, an impartial representative that settles complaints between individual customers and businesses when a satisfactory outcome cannot be reached between the two. For more information, visit http://www.financial-ombudsman.org.uk/consumer/complaints.htm

From 01 April 2014 our credit businesses are authorised and regulated by the FCA. The FCA regulates the entire financial services industry and uses a set of rules and principals to ensure that customers are fairly treated by providers.

Provident home credit is also a member of the home credit industry’s trade association, the Consumer Credit Association United Kingdom (CCA), and is subject to the CCA’s Code of Practice and Business Conduct Pledge. These are voluntary codes which reinforce the statutory and regulatory requirements.

Ireland

In Ireland, (where home credit lenders are known as ‘moneylenders’), the regulatory framework consists of the statutory obligations set out in the Consumer Credit Act 1995, together with the requirements of the Central Bank of Ireland’s Fitness and Probity regime, the Consumer Protection Code for Licensed Moneylenders 2009 and the European Communities (Consumer Credit Agreement) Regulations 2010.

Provident Personal Credit Limited is licensed to carry on business as a moneylender by the Central Bank of Ireland. It is also a member of the Consumer Credit Association Republic of Ireland.