I doubt if Westpac's lending facility was an issue. It seems to me on reading the announcement that CCP is peeved that the Government has decided to extend the meaning of Payday Loans, and CCP simply does not want to be seen to be in that grubby line of business. Also, getting into the loan business was a strategy to counter the shortage of Purchased Debtors' Ledgers (PDLs) a few years ago, but that market has eased, and CCP has invested heavily in PDLs recently, so i think management is more than happy to invest less in the Loan Book, and thus reduce its need for debt, which increased when CCP was presented with the opportunity to invest in PDLs at attractive prices.
The Government may learn that driving CCP and similar companies out of the small loans business is dysfunctional - it merely gives the unregulated loan sharks more to feed on.
CCP Price at posting:
$9.34 Sentiment: Hold Disclosure: Held
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