Anyone can currently get a loan from APT without a credit check.
A delinquent off the street, school kids, people without any chance of ever repaying the loan.
These people won't get a second loan but do you you think they care, they already have the product that they couldn't otherwise obtain. Its better than stealing it.
Huge loophole in this offering IMO.
Why do you think its transactions are growing so quickly and ASIC are having a good look at the industry.
If they are forced to conduct credit checks on all loan transactions, they have a problem:
1. They don't have the platform to do so
2. Their costs per transaction will go through the roof.
Sure a large percentage of users are genuine, but you only need 5 to 10% in this space who are not to cause you a massive problem.
Akin to a game of pass the parcel, be careful you are not last in line.
IMO, the ridiculous ease of credit will continue to catch on and create a genuine problem for APT going forward.
Ultimately, its not a problem for the consumer, they never had the money anyway, its a problem for APT.
Late penalties are only any good to you if you can ultimately redeem them from the borrower.
If you have no money and you can get something under $1000 for nothing, without stealing it, why wouldn't you do it?
Yarra
APT Price at posting:
$5.42 Sentiment: Buy Disclosure: Held
