Provident Financial faces critics

Customers were misled, the BBC programme claims

Doorstep lender Provident Financial has pledged to review its car sales business after a BBC programme exposed failings at its Yes Car Credit arm.

The 'Whistleblower' programme claimed that because proper safety inspections were not carried out, potentially dangerous cars were sold to customers.

The pledge came with the release of better-than-expected profits, up 7% to £220.7m ($425m).

A 25% rise in foreign lending offset tough trading in the UK credit market.

Provident Financial is the UK's biggest doorstep credit lender, holding almost 50% of the £2bn market.

The Bradford-based group also has operations in Poland, Slovakia, Hungary and the Czech Republic.

Doorstep lending in the UK is facing scrutiny from competition watchdogs after complaints from consumer groups that there is not sufficient competition in the market, which leads to uncompetitive interest rates.

Under fire

The lender's Yes Car Credit arm is revising its sales practices, the company pledged, and will retrain all its staff.

The Whistleblower programme shows sales staff openly criticising Yes Car Credit's vehicles and even advising an undercover reporter from the BBC not to bother buying one.

Finance Director John Harnett said he had not seen the prgramme but was aware that it features Yes Car Credit's Croydon branch.

"We are aware of problems at the Croydon branch at the end of last year and we have made changes there," assured Mr Harnett.

Profits at the Yes Car Credit division fell to £4.4m from £11.2m last year, the group said.