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FlexiGroup Limited (ASX:FXL) today came forward to publish its response to Senate Inquiry into credit and financial services aimed at financial risks to Australians.
The financial services group FXL stated that its position on responsible lending is evident with the long track record of adapting leading industry and regulatory changes. FlexiGroup has reportedly been an early adopter of Consumer Lease reforms and Small Amount Credit Contract (SACC) introduced by the Government. The company stated that it strongly supports the changes and has even asked for the reforms to be applied across the consumer leasing industry.Â
Rebecca James, Chief Executive Officer of FlexiGroup, stated that FlexiGroup acknowledges its responsibility to the community that it serves and thus have early adopted the Government Panelâs recommendations in its consumer leasing business. She added that the company actively supports the SACC reforms and are keen to see them implemented.
The lending group has also been in favor of the observation and findings that were mentioned in ASICâs report relating to areas of improvisation for the Buy Now Pay Later (BNPL) sector. The regulator recommends undertaking better practices for BNPL with the view to support consumer access to suitable credit facilities. FlexiGroup stated that it has robust income verification processes and technology in place which could assist its BNPL products as well.
FlexiGroup is also opening to adopting the verification process which is being followed industry-wide including customersâ identity verification, their credit history and affordability levels in support of its BNPL products.
Ms. James added that it has been in the best interest of the company and its customers to ensure that they can afford their repayments. The company has a significant commercial imperative for confirming customer affordability, and its long track record demonstrates that it has been getting it right, she added.
The company further explained that the company has been practicing self-regulation in the form of customized BNPL code. It is reportedly calling on the industry to take a positive and proactive approach to regulations and be more willing to build transparent and trustworthy relation with its customers. FlexiGroup is further seeking the opportunity to engage with prospective stakeholders and industry that considers its approach to responsible lending.
In todayâs trading session, FlexiGroup shares have been trading at lower levels. The stock price fell 1.979% to trade at $1.387 on 23 January 2019 (2:45 PM AEST). FXL market capitalization stand at $529.6 million.
Moreover, the stock price has witnessed a negative daily price change of 25.07% over the past 12 months including a meltdown of 18.56% experienced in the past three months.
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