Checkmate? Credit Corp Group Limited falls 11% upon returning to trade

Checkmate? Credit Corp Group Limited falls 11% upon returning to trade

We published yesterday that Credit Corp Group Limited (ASX: CCP) had entered a trading halt after the book of a report that is anonymous ‘Checkmate Research’. After the business’s reaction, and its particular come back to trade today, the Credit Corp share cost has dropped 12% to $16.64.

I happened to be delivered a duplicate regarding the 37-page report yesterday night by Motley Fool analyst Ed Vesely. Take note that many associated with the allegations included in the report were refused by Credit Corp as wrong & most of this report is simply viewpoint.

Nevertheless, in its report, Checkmate contends that:

  • Credit Corp’s primary company is a payday lender this is certainly avoiding category as a payday loan provider via its utilization of a appropriate loophole
  • Avoiding category as a payday loan provider presumably brings regulatory or money advantageous assets to Credit Corp
  • Credit Corp’s bank Westpac Banking Corp(ASX: WBC) has cut money with other payday loan providers like Cash Converters Overseas Ltd(ASX: CCV) and Money3 Corporation Limited(ASX: MNY)
  • Checkmate says that Westpac should stop employing Credit Corp, in the same manner so it has along with other payday loan providers
  • Checkmate accuses Credit Corp of so-called ‘earnings administration’ because of its too smooth profit that is gross, considering that alterations in the company never have led to a significant improvement Learn More Here in margins within the last couple of years
  • Checkmate says that Credit Corp may be worth ten dollars a share in place of its last traded cost of $18.84

There is certainly a great deal to protect in every one article – 37 pages worth – thus I will endeavour to summarise the main points.

Payday lending?

Checkmate states that Credit Corp runs on the loophole into the Small Account Credit Contract (SACC) legislation which makes it legitimately perhaps perhaps not an SACC lender (‘payday lender’). Continue reading “Checkmate? Credit Corp Group Limited falls 11% upon returning to trade”