Hush money: Provident Financial accused of helping clients hide spouses' debts

Scandal: boss Peter Crook's huge salary was revealed by the Ministry of Defense last August

Hush money: Provident Financial accused of helping clients hide spouses' debts

  • Provident Financial offered customers' silent accounts & # 39;
  • The firm also enrolled customers for small loan businesses that did not need and could pay, a practice known as "bursting pots."
  • Claims have arisen in a statement from a former managing director

Alex Hawkes for the mail on Sunday

The dishonest lender door to door Provident Financial offered customers "silent accounts" that allowed them to keep their debts secret from their partners, according to a former executive.

The firm also enrolled customers to obtain small loan offers they did not need and could easily pay, in order to flatter their accounts by making it look like they had a large number of reliable clients, a practice known as "marijuana resale. "

The claims have come up in a statement from a former managing director of his door-to-door credit arm, which sends agents to borrowers' homes to collect reimbursements.

Scandal: boss Peter Crook's huge salary was revealed by the Ministry of Defense last August

Scandal: boss Peter Crook's huge salary was revealed by the Ministry of Defense last August

Andy Parkinson was fired a year ago after a catastrophic restructuring of the Provident agent network based in Bradford.

He filed a claim with a court that heard in Leeds that in 2013 Provident participated in the "search of potential customers at his door that, in the best of cases, did not comply and the result was probably illegal."

Parkinson said Provident was "systematically ignoring affordability considerations," without paying attention to whether clients could manage the loans. He also claimed that the company held luxury overseas strategy conferences for its executives, while customers had trouble making ends meet.

The claims are likely to worry investors, regulators and debt activists. The allegation that Provident attracted customers with loans that could hide its partners will enrage charities that deal with people who have accumulated debts that ruined their relationships.

The research sponsored by Provident Financial, including charity, was linked last year with people who kept their partners in the dark about their financial problems.

It was a FTSE 100 business until last year's calamitous move to reduce the number of door-to-door agents and rely more on technology. Former CEO Peter Crook resigned after the problems arose, prompting the company's stock price to fall 68 percent in a day last summer.

The Mail on Sunday revealed at that time that Crook had been paid more than £ 40 million for a decade in command of the company.

Provident Financial said it is committed to "comply with its regulatory obligations, deliver good results to customers and is implementing its recovery plan."

He said the unfair dismissal claim for Parkinson's "is ongoing and it is not appropriate to comment on specific points raised as evidence."

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