The Bradford-based institution has more than 380,000 customers and is Britain’s largest specialist sub-prime lender.
However it has been loss-making since an attempt to modernise went awry four years ago, leading to profit warnings.
The move by Provident highlights the pressure on the sub-prime credit market, and follows the collapse of other well known short-term lenders such as Wonga and QuickQuid in recent years following customer complaints.
It was reported in national newspapers that Provident will also close its online lending business Satsuma, switching focus to its credit card business Vanquis Bank, and car finance operation Moneybarn.
It was reported shareholders were due to be told about the decision when Provident publishes its annual results next week.