Home NEWS Business Provident Financial rallies as it hires back agents

Provident Financial rallies as it hires back agents

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Troubled lender Provident Financial enjoyed a share price rally after revealing it had hired back former agents to help restore its reputation on the doorstep.

Provident, which sells loans and collects debts by going door to door, suffered a disaster in the summer when it issued its second profit warning in three months.

The company’s share price lost two-thirds of its value in one day and its chief executive resigned after it admitted that a plan to move away from using self-employed, part-time agents to a smaller number of full-time staff had failed, resulting in plummeting debt collections.

Provident said today it had hired 300 part-time staff, primarily from the ranks of its former self-employed agents, to “accelerate the reconnection with customers” and improve the rate of collections on the doorstep.

After its sharp sell-off Provident acted quickly to bring back Chris Gillespie, the former head of its consumer credit arm, to put the division back together.

It already appears to be reaping the benefits of its plan, with doorstep collections rising to 65pc in September from 57pc the month before. A year ago the rate was at 90pc.

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