current value, page-12

Any thoughts?

Yep - you p*ss off your customers by doing that, and you go out of business faster, rather than slower. And, not necessarily more profitably.

Transferring a loan from one provider to another is not a cost free process for the company losing the business. They need to employ staff to effect the transfer. Whilst an orderly transition, with a few loans a month, may be able to be handled by existing staff...imagine what would happen if every one of your customers wanted to change over within the space of a few months?

Bedlam: paper warfare; lawyers' fees; phone line meltdown; staff stressed; staff leave (hey - we won't have a job in a few months, anyway - why should we put up with this?);...need I go on? Finally, when you can't transfer all 55,000 loans off your books within a month or two, the lawsuits start. Then you have lawyers' fees, management time dealing with lawyers, bad press, those customers who didn't initially want to leave are now spurred into action...

So, my point is that the break fees might, if they were received in the normal course of business, produce a small profit for the company. However, if they were received in a disorderly rush for the exits, the carnage would far outweigh the benefits.