Vanquis Banking Group warns of lower full-year profits due to increased costly claims and product overhaul impact.

Specialist lender Vanquis Banking Group warns of a hit to full-year profits after a surge in costly claims and an impact from its overhaul of products and pricing. The group revealed "significant levels of third-party complaint submissions," mostly relating to credit cards, despite not being part of the Financial Conduct Authority's investigations into motor financing. Shares in Vanquis plunged more than 36% in Monday morning trading as it expects lower income and underlying pre-tax profits for 2024 to be "substantially lower" than the £75.1m anticipated.