Provident Financial Drops Most Ever as CEO Quits

The transcript discusses the 10-year anniversary of the credit crisis, highlighting the FCA's focus on UK consumer credit, particularly in persistent debt and subprime lending. It examines Providence Financial's issues, including an FCA investigation and changes in their business model. Despite past success, the company faces challenges in adapting to new regulatory environments. The FCA emphasizes affordability and fair treatment in consumer credit regulation.

What is the primary focus of the FCA in the context of UK consumer credit?

• Monitoring stock market fluctuations

• Controlling inflation rates

• Overseeing persistent debt and subprime lending

• Regulating mortgage rates

What specific issue has the FCA been investigating at Providence Financial?

• Their mortgage lending practices

• Their insurance products and credit card business

• Their stock market investments

• Their international trade policies

What change did Providence Financial attempt in their business model?

• Focusing on high-net-worth clients

• Expanding into international markets

• Eliminating door-to-door collections

• Switching to online banking

How did Providence Financial perform over the decade following the credit crisis?

• It lost a significant number of customers

• It tripled its stock value

• It maintained a steady performance

• It struggled and faced bankruptcy

What is a key regulatory focus of the FCA since 2014?

• Ensuring fair treatment of customers who cannot afford loans

• Promoting international lending practices

• Increasing interest rates for subprime loans

• Reducing the number of credit providers