Thanks ProInv.Other on HC...If you’re an SPT holder and are...

Thanks ProInv.

Other on HC...If you’re an SPT holder and are seeing this....IMO this is a game changer.

I suspect the ‘hold’ of the credit balance has been a blocker for users - and has caused users to question the value of the SPT.

Now I am curious to know how does SPT manage this new risk, being the risk of ‘default’.

Essentially what SPT is providing for here is extra credit, and underwriting that, but doing so with a creditor that already has a credit card and rating with another financial institution.

I wonder if SPT is managing this by arrangement with the credit provider (bank)?

That is - if I spend $1200, I pay the first $120. But what if I then default on the next two payments. What does SPT do??

Do they -
1. Just wear it? and no longer enable the user access to SPT? or
2. Do SPT have an arrangement with the bank to recover the balance from the credit card?....but what if that balance has gone / been used on something else? or
3. Is there some other mechanism in place to recover the debt?

Any thoughts appreciated!

This is very interesting

EB