Ann: Trading Halt, page-27

The way in which the margins and amortization are in a very tight band compared to competitors requires explanation. I'm upset with myself over this, it doesn't look good at all.

However, the stuff on Wallet Wizard is overblown. A big part of the growth is surely that it is cheaper. Taking applications from anyone at first is hardly illegal or unethical, I assume a lot are then simply knocked back. I get that ease of getting the loan is a big consideration, but surely a 48% APR is going to drive more business than a 68% APR?

I agree though that it is in a grey area. I don't think it's a secret that Wallet Wizard markets to customers in the segment, however the product it offers is not a pay day loan by virtue of the longer terms and less fees and charges, in addition to the line of credit format. However yes, CCP moved into MACC lending in the form of a LOC to keep operating which was clever and up to this point very successful. I suppose there is regulatory risk here down the track if and when regulators respond to that.

Westpac pulling the plug based on the media reports on this report is a big call! In reality, Westpac have many other things hurting their reputation to the point where ceasing funding to the cheapest 'non payday' lender might not be a priority. I'd imagine CCP will seek assurances from Westpac on it's funding and announce this to market as part of the response. Unless of course that isn't done, in which case that is very bad, obviously.

Was interesting to read the connections to Westpac although, it's hardly a conspiracy that directors of a Australian financials company have worked at a 'big 4' bank in Australia - there are only 4 of them after all.

What's a worst case scenario here, the market valuing the lending division at nothing and running that down because funding turned off soon? So 20-30% downside? The lending market share in Australia is already pretty mature. Still a big opportunity in the US and the core in Australia will continue on.

I think kI'm trying to talk myself into holding this through what I think could be some carnage on Monday, depending on the company response of course. Although, the way in which the margins ect suddenly became so smooth seems pretty damming.