Provident is writing off old debts

British consumer credit provider Provident left the Slovak market at the beginning of 2016, after parliament imposed a cap on interest rates for lenders. Provident sold its credit portfolio to Polish collection agency Kruk, which is now waiving all debts, some €50m in total. It is acting on information by the central bank NBS, which ruled that some of Provident’s loans were provided in violation of valid legislation. Last year, NBS fined Provident €90,000 for several violations, such as charging hidden fees. Kruk would not disclose how much it paid for the loan portfolio and what its losses will be.

(HN/1)