 fell over 60 percent on Tuesday, after debt collection rates sunk to just 57 percent.){kind=link}
Shares in doorstep lender Provident Financial (LON:PFG) fell over 60 percent on Tuesday, after debt collection rates sunk to just 57 percent.
The company was forced to issue its second profit warning in months, warning that it is likely to end the year in a loss of between £80 and £120 million. The loss was driven by a fall in debt collection rates from 90 percent in 2016, to 57 percent this year.
The change comes after Provident changed the way it collected its loans, replacing self-employed agents with “customer experience managers”. Its chief executive, Peter Crook, has resigned in the wake of the figures.
The company confirmed it would no longer be paying the dividend it promised previously, and will undertake a “thorough and rapid review of home credit’s performance”.
Manjit Wolstenholme, executive chairman and acting chief executive, said: “I am very disappointed to have to announce the rapid deterioration in the outlook for the home credit business.”
Shares in Provident Financial are currently trading down 60.32 percent at 691.00 (0943GMT).