This is interesting, and I've been following this since late March and would like to hear others opinions. It's obvious they have tightened up their lending criteria on some users or stopped certain products which have a higher default rate.
As stated in the last business update:
Pre-emptive adjustments to risk settings has had a positive impact on loss performance lead indicators in the second half of March and early April.
For a lot of customers it seems to be working fine. I think they might be also limiting certain geographical areas in the US (maybe NY) or where they have seen higher requests for payment relief.
Overall as per the business update, they are still growing and April saw an increase in sales of 10% vs late March. So growing with a foot on the brake is good. Requests for debt relief have also been going down since late March, which is positive.
I would like to see them take off the restrictions as quickly as possible so that the customer loyalty isn't affected too much longer term. The faster that happens the better.
Other than that losing New York & Co as a customer is a bummer, hopefully they can get them back at some stage as people have been asking for it.
APT Price at posting:
$41.20 Sentiment: Buy Disclosure: Held
