The Bear Room, page-2934

Looks as though ZIP ceased use in New Mexico, Maryland, Virginia and Missouri on July 31 when they were advised they needed a Lending licence in each state, which they don't have. As they have not announced it there is no way of knowing if they intend to rectify it, but as all 52 states have unique and complex laws it will be hard and if it spreads into other states they have a potentially big drama.

Those 4 states have a combined population of about 21 million, of US 335 million. Canada's population is 41 million, so they have lost about 16% of their addressable market since April. They also have pending legal action from the Federal Consumer Financial Protection Bureau regarding fees which should have been disclosed as required by credit providers. It's all going on for ZIP in the US. When they issued the SPP document on 7 July they made no mention of any upcoming problems with the 4 states, nor did they modify it or notify the market when they withdrew their services on July 31. Should have, I reckon they have dodged a bullet if the ASX does not do anything about it.

ZIP wants shareholders to trust them instead of informing them about the business. All that pumping and turning the corner but no mention of the significant legal and financial hurdles they face. Should have taken the CFPB along with them for advice when they got a loan from Ares - could have saved ZIP shareholders at least $100 million IMO at a time when they could least afford it. As long as the SP goes up shareholders don't give a phuk. For now.