Ann: New Zealand Commerce Commission, page-16

I think the risks with the regulatory cases are:

1. Fines can be substantial. There's evidence fines can be $70m+ (BMW) and remediation programs are put in place to make whole all customers identified as affected.
2. May lead to a class action from customers.
3. Solvar runs into covenants breaches with the fine and also finds it even harder to secure wholesale funding (note; they already forecast funding partners will drop from 5 to 3 in 2H).
4. They have to modify their model away from lending to those on social welfare......and earnings drop.

Unlikely to be this bad but if regulators see this as a predatory lending company, they'll be trying to take it down.

I was close to pulling the trigger a while ago and decided the risks were too great and needed further time/ information to come out.