Cash Converters says reforms not a threat June 1, 2011
AAP
Cash Converters International Ltd says there is no imminent threat to its business from a potential cap on interest rates charged by payday lenders.
The pawn broker said the second phase of the federal government's national consumer credit reforms could limit the interest rates charged, but a cap has not yet been introduced, and may not be.
Cash Converters said it had discussed possible measures with the government, and there had not been an indication that reforms will have an adverse outcome for its business. Advertisement: Story continues below
"If the reforms do have the potential for an adverse outcome, CCIL will take steps to minimise or offset any adverse effect on earnings," the company said.
The statements were made in response to an article published in The Australian Financial Review earlier this week that stated a limit on interest rates charged by company's such as Cash Converters could be implemented.
Since the article was published, shares in Cash Converters have dropped by 12 per cent, from 78 cents to 68.5 cents
CCV Price at posting:
64.0¢ Sentiment: Buy Disclosure: Not Held
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