UK watchdog will not block Provident’s compensation scheme in court

FCA still says mis-sold loans payout plan would offer customers less than they are owed

The UK's financial watchdog has announced that it will not formally oppose Provident Financial's plans for its doorstep lending unit in court, even though it has said it does not support its compensation scheme for customers who were mis-sold loans.

The Financial Conduct Authority (FCA) expressed its concerns in a letter to Provident Financial, saying it believed the compensation plan would offer consumers significantly less than they were owed.