Vanquis Banking said the level of complaints received from one management company remained unacceptably high and that it had taken legal action against the business concerned.
The finance group warned in March it had seen a significant uptick in no-win, no-fee complaints related to its credit card business, adding that even though most were not being upheld it would materially affect profits due to the processing costs.
At the same time, Vanquis said it was repricing its credit cards and investing more in technology.
In an update today, Ian McLaughlin, chief executive commented that there were still"l challenges to address with the new strategy", but it was making “good progress in building our customer proposition and risk management capabilities to meet growing customer needs.”
“In parallel, we are improving operational efficiency and continuing our investment in technology.
Customer bloans were £2.22 billion at the end March 2024, down from £2.35 billion three months earlier, which Vaquis said reflected action to reduce unprofitable lending and lower spending by credit card customers.
Net I interest margin rose to 19.3% from 19% while credit quality was 'stable'.
Shares dropped 3% to 55p.