Car finance firm investigated by the regulator
The Financial Conduct Authority (FCA) has launched an investigation into vehicle financing firm, Moneybarn, in relation to customer affordability assessments and the way it treated customers facing financial difficulties.
It helps people with poor credit scores who have been refused car or van finance elsewhere. Its representative APR is 32.9%.
Moneybarn is part of doorstep lender Provident Financial, which was relegated from the FTSE 100 in August following its profit warning and the revelation that its subsidiary firm, Vanquis Bank, was being investigated by the FCA.
A statement from Provident Financial Group, read: “PFG aims to act responsibly in all its relationships, and to play a positive role in the communities it serves. The FCA granted Moneybarn authorisation to conduct consumer credit activities on 3 June 2016 and since that date the FCA has continued to discuss certain processes with Moneybarn and Moneybarn has made a number of process improvements, including to the way it deals with future loan terminations.
“The Company will work collaboratively with the FCA to investigate the remaining concerns and resolve any outstanding related issues as soon as practicable.”
It added that the company intends to make a post-closing trading update in mid-January.
The FCA was unable to comment on the investigation.