Competition Commission

Provident Financial PLC
30 November 2006


Competition Commission Final Report


Provident Financial plc notes the publication today by the Competition
Commission ('CC') of the final report of its Inquiry into the provision of Home
Credit in the UK.


The four final remedies proposed by the CC were outlined in its statement of
proposed remedies published in August 2006.  These are:


            •     data sharing with credit reference agencies

            •     publication of prices on an independent website

            •     the provision of statements on request by customers, and

            •     enhanced early settlement rebates.


Provident Financial will continue to work constructively with the CC to
implement the remedies, the majority of which are due to be in place by the end
of 2007.


Provident Financial is pleased that the CC's own research confirms high levels
of satisfaction among customers who find home credit products well suited to
their needs.  The CC has recognised evidence of innovation within the industry,
that the relationship between customers and agents is appropriate and that
customers value the service they receive.


Provident Financial also notes the CC's rejection of price caps.  The CC
recognises that home credit is valued by many customers and does not believe
that it would help customers if home credit were less available as a result of
the imposition of price caps.


Provident Financial continues to reject the CC's analysis of profitability.
Evidence from two independent experts, Sir Bryan Carsberg and Professor Colin
Mayer, which was presented to the CC, is consistent with Provident Financial's
position.


Provident Financial notes that the CC says about its own profitability
calculations 'we recognise both that our profitability estimates may be quite
imprecise and that there was not necessarily any straightforward or direct link
between those estimates and the extent to which the prices in the market could
be said to be too high'.


Enquiries:


Kevin Byram, Brunswick                                            020 7404 5959


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