23.08.2017 - 02:29 [ CapX ]

There’s a new sub-prime crisis, but it’s not what you think

So are we facing a new sub-prime crisis? There are two conflicting narratives.
The first is that Provident’s problems are unique to Provident. The firm operates in what is euphemistically known as “the non-standard credit market” – ie providing loans to people who are woeful credit risks. It does this via Vanquis Bank, which sells credit cards; Provident, which sells domestic loans; Satsuma, which does short-term online loans a la Wonga; and Moneybarn, which provides car finance.