Doorstep lender Provident still bearing the scars of botched tech overhaul

DOORSTEP lender Provident Financial today admitted it was still feeling the hangover of the botched overhaul that plunged the company into crisis more than a year ago.

The firm’s attempts to replace its army of part-time collectors with a full-time workforce using a new IT system proved disastrous, sending collection rates plunging.

The Provvy, as it is affectionately known, also had to launch an emergency £300 million rights issue after a regulatory probe.

Provident said today that its recovery plan for the home credit business was “substantially complete” but collections remain some 10% below historic levels.

Chief executive Malcolm Le May: said: “The home credit business is still experiencing the drag on collections performance from those customers who were active during the poorly executed migration to the new operating model in the third quarter of 2017.

“Importantly, customers who have taken credit from us since then are performing in line with historic levels.”