Credit crunch paying off for Provident

PROVIDENT Financial, a market leader in home credit in the UK and Ireland, said it is enjoying a business upturn thanks to the continuing credit crunch.

The loans and credit card supplier said the tougher lending criteria imposed by high street providers had resulted in a busier second half of the year.

In its home credit market, which offers sums up to £500, Provident said its rate of customer growth had increased since July with numbers as at the end of November 3.8 per cent up year-on-year.

Customer numbers at Vanquis Bank, the firm's credit card business set up three years ago for people with poor financial history, were also up nearly 60,000 during the year to more than 310,000 last month.

Provident said it is enjoying "favourable market conditions as mainstream lenders tightened their lending criteria".

Chief executive Peter Crook said: "The group is able to take full advantage of current market conditions at a time when an increasing number of customers in the UK are having difficulty obtaining credit from high street lenders."

He added the company's strong credit management resulted in an improvement in arrears levels.