The 'bad news' is that Govt have changed the law re mico/payday lending and margins have been reduced, and more conditions attached to lenders. Another important change is (quoting CCV CEO in The Australian) 'Cash Converters chief executive Peter Cummins said many payday lenders had made "a good portion of their profits" by continually rolling over loans, a practice now outlawed. "Now the customer has to repay the loan before getting a new loan," he said. "When that profitable part of the business disappears, a lot of them will say, 'This isn't as lucrative as it used to be' and move on."
MikeM. But this industry still makes strong profits and with banks less willing to provide unsecured loans, demand remains strong as ever. Hold.
