Shamed boss of Provident was adviser to watchdog

DISGRACED doorstep loan boss Peter Crook was advising the City watchdog while it investigated his firm’s credit card arm.

Crook quit as head of Provident Financial this week as shares crashed following a massive profit warning and revelations of a probe over card protection products.

Bosses had known the Financial Conduct Authority was worried about the business by April last year – but until yesterday, Crook was still a member of its practitioner panel which helps draw up policies.

It came as fresh fears were raised over the firm’s future, with a City firm saying it could face a £73m funding shortfall.

The practitioner panel is made up of bosses whose firms are supervised by the FCA, and provides advice as it develops its policies.

As a member, Crook – who has earned £30m in the last five years – helped draft monthly reports for the watchdog and enjoyed informal access to directors. He quietly gave up the post yesterday.

The FCA has spent months looking into Provident’s card division Vanquis Bank over the sale of repayment option plans allowing customers in financial trouble to freeze accounts without incurring extra interest.

Although the business refuses to say when it was informed an investigation started, it stopped selling the product in April last year at the FCA’s request.

The panel does not have any role in investigations, or get updates about them. However, experts said Crook’s membership was a cause for concern.

Former City minister Lord Myners said: ‘It might have been wise for him to have stepped down when the investigation commenced.’

The watchdog declined to comment. Meanwhile, analysts at Liberum warned: ‘We believe Provident could be facing a funding shortfall by June 2018.’ Shares in Provident fell nearly 70pc on Tuesday, then rallied 12.1pc yesterday.