This looks ominous - UK Sub-prime loan firm Provident Financial in big big trouble

robut

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At least 800,000 struggling families face crisis after sub-prime loan firm Provident Financial goes into meltdown

  • Shares in Provident Financial crashed 66 per cent yesterday as crisis looms
  • Drop believed to be biggest one-day fall for a blue-chip FTSE 100 firm ever
  • Peter Cook, the CEO, resigned in disgrace as £1.7billion was wiped off its value
  • Now 800,000 customers of it doorstep collection business are at risk
Analysts have been closely watching the 137-year-old company, which targets customers with poor credit history, because any problems with repayments are likely to be an early warning sign that Britain’s debt bubble is about to burst.

Shares in the business crashed by 66 per cent yesterday after bosses admitted that a software bug has made it impossible to collect debts from customers.

The problem is so bad that only 57 per cent of debts are being collected on time, as opposed to the 90 per cent normally picked up.
Investors dump subprime lender as bombshell hits

Reading these headlines sent shivers down my spine ... too close to an 08 crash reminder :(

One of the comments below article:

"The amount of families in Mortgage and credit card debt is massive. The UK has a growing record Credit debt mountain and a growing Low Income Poverty Society struggling on PT jobs and claiming benefits while working.. This cannot be sustained as the population grows each month and another recession looms closer."
And add to that the amount of PCP ( Personal Contract Purchase ) car finance out in UK .. topping about €46 BILLION at the moment!
 
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Mad as Fish

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At least 800,000 struggling families face crisis after sub-prime loan firm Provident Financial goes into meltdown





Investors dump subprime lender as bombshell hits

Reading these headlines sent shivers down my spine ... too close to an 08 crash reminder :(

One of the comments below article:



And add to that the amount of PCP ( Personal Contract Purchase ) car finance out in UK .. topping about €46 BILLION at the moment!
The EU will be wasting their time leaning on the UK to bail out its banks to save the great European project.
 

robut

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The EU will be wasting their time leaning on the UK to bail out its banks to save the great European project.
If that blows ( as in subprime crisis in UK & more ) .. it will be a major double blow for Ireland PLC along with Brexit ..
 

Mad as Fish

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If that blows ( as in subprime crisis in UK & more ) .. it will be a major double blow for Ireland PLC along with Brexit ..
I should think that there is such a complex web of investors involved that we will never get to know quite what the exposure of European banks is to the company. But all that slagging off that the UK has received since Brexit is not going to help matters.
 

robut

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Well if it does blow its also more about what else it could drag down .. LIKE dominos. Remember that in 08??
 
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Mad as Fish

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Well if it does blow its also more about what else it could drag down .. dominos. Remember that in 08??
Indeed, which is why there might be some squeaky bums in Brussels tonight.
 

OrderoftheDragon

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You only have to watch the likes of homes under the hammer on BBC1 to see the profile of the majority of UK "investors"......ordinary joe soaps clearly up to their eyeballs in debt........when the UK goes it is going to go bigger than we did for sure.
 

ShinnerBot No.32564844524

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Meh, Italy's been kaput for over a year now and quiet containment has been the measure of the day. Doubt the Euro's even give a shíte for the UK, chances are the web has largely been detangled since 08, and now this is some added rancid meat in the shít sandwich that is Brexit.

As those damned EuroFrogs would say 'Bon Appetite!' :lol:

The Euro's still a doomed currency in need of major structural reform...but then the UK's not in the Euro...innit.
 

gerhard dengler

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Remember too that this is happening in an era where bank interest rates have not been as low as they are these days.

Co-Operative Bank in Britain is another worth keeping an eye on. It announced £477 million in losses for 2016, recently.
It has been on the rack since 2013.
 

bonkers

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Remember too that this is happening in an era where bank interest rates have not been as low as they are these days.

Co-Operative Bank in Britain is another worth keeping an eye on. It announced £477 million in losses for 2016, recently.
It has been on the rack since 2013.
Don't think the likes of Provident give low interest rates.
 

silverharp

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why dont people ever learn, there always seems to be a new batch of suckers who want to put their financial situation at risk by dealing with these cowboys
 

dresden8

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These usurer guys used to have the common decency to be illegal. Then they went mainstream. Just like U2.
 

Spanner Island

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These usurer guys used to have the common decency to be illegal. Then they went mainstream. Just like U2.
They (sub prime lenders) shouldn't have had the option of going mainstream.

All this crap should have been washed out of the rancid global financial system a decade ago...

But nah... QE and feeding the markets their equivalent of heroin or crack cocaine has been the 'answer'... FFS... :roll:
 

Mad as Fish

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Well if it does blow its also more about what else it could drag down .. dominos. Remember that in 08??
Act one, scene one.

A rather nervous Italian gentleman with neatly parted hair enters the office of Phillip Hammond at No 11.

Mario: "Ah Phil my old friend, how are you?" (proffers hand, which is ignored)

"Err.. About all those nasty things we called you and the people of Britain when they took such a courageous decision last year, you know we were only joking don't you, we didn't mean it really, haha!"

Hammond: (who sits with feet on table earnestly perusing the latest edition of The Beano) Mind you close the door on the way out Draghi.

The end.
 


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