News

Credit Corp Group Limited (Credit Corp) has entered into a binding agreement to acquire the remaining business of and all outstanding shares in Collection House Limited (Administrators appointed) (Collection House) for a total consideration of $11 million. The transaction is subject to acceptance of a proposed Deed of Company Arrangement by the creditors of Collection House, ASIC relief and Court orders enabling the transfer of Collection House shares and performance of completion obligations typical for a transaction of this nature. Completion is expected to occur by 30 September 2022.

The acquisition will significantly increase the scale of Credit Corp’s Collection Services activities in both Australia and New Zealand through a range of new client relationships and will more than double Credit Corp’s revenues in this sector.

Mr. Thomas Beregi, CEO of Credit Corp, commented that Credit Corp would build on the strong Collection Services franchise of Collection House, noting the longevity of many client relationships. “The transition will be seamless and Credit Corp will maintain the high service levels provided by Collection House over many years. Long-standing clients will benefit from the certainty of a secure financial structure and the capacity to invest in enhanced service provision over time” he said.

This acquisition is not expected to have any material impact on Credit Corp’s results for the 2023 financial year.

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Forbearance correction and ASIC Notice

Credit Corp Group Limited (Credit Corp or the Company) maintains an ongoing program of quality assurance review. A recent review identified that a number of customers had been charged interest in accordance with the applicable credit contract in circumstances where the Company had intended to apply forbearance in the form of a zero or reduced interest rate.

An internal investigation was initiated to determine the extent of the issue and the proposed remediation. While the investigation and remediation will not be substantially completed for another 90 days the Company has commenced the process of advising stakeholders.

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Credit Corp Group Limited reports the following highlights for the 2022 financial year:       

• 9% increase in net profit after tax (NPAT) to $96.2 million1
• Record annual investment:
  • US purchased debt ledger (PDL) outlay 80% above previous peak (FY2020)
  • Gross lending volume 24% above prior record (FY2019)
• 16% increase in US segment NPAT
• Recovery in lending segment earnings and loan book

1 Statutory NPAT of $100.7 million includes $4.5 million US Paycheck Protection Program (PPP) loan forgiveness.

Read the full Media Release  |  View the Video presentation  |  View the full presentation  |  View the Annual Report