Aberdeen Standard Investments is suing beleaguered Provident Financial regarding alleged delays in disclosing a regulatory investigation into its credit card business.
The legal dispute relates to the subprime lender's Vanquis Bank subsidiary, which was under investigation by the Financial Conduct Authority (FCA) regarding the sale of its repayment option plan as revealed in the company's August update, The Times reports. The probe led to a £172m settlement with the FCA, which included £157m compensation to 1.2 million people who took out the product before sales were suspended in April 2016 without Vanquis properly explaining the interest charges, and forced Provident to tap investors for £331m in emergency capital through a discounted rights issue. ...
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