CURO Responds to Federal Government of Canada';s Proposed 2023 Budget

Rhea-AI Summary

CURO Group Holdings Corp. (NYSE: CURO) has responded to the Canadian government's proposed 2023 Budget, which includes a plan to lower the maximum allowable interest rate from 47% to 35%. The company emphasized its commitment to providing affordable financial solutions to underserved consumers. CURO indicated that while the proposal is in its early stages, they will actively engage with the government to highlight potential adverse effects on customers. CURO remains cautious regarding the long-term impact of this proposal on its operations and will monitor the situation closely while ensuring appropriate returns for its business.

Positive

• CURO highlights its commitment to affordable financial solutions for underserved consumers.
• The company plans to engage with the Canadian government to address customer concerns regarding the proposal.

Negative

• The proposed interest rate reduction from 47% to 35% may impact CURO's profitability.
• The long-term implications of the proposal on CURO's business remain uncertain.

CHICAGO--(BUSINESS WIRE)-- CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or “Company”), a tech-enabled, omni-channel consumer finance company serving non-prime and prime consumers in the U.S. and Canada, responds to the federal government of Canada’s proposed 2023 Budget.

On March 28, 2023, the federal government of Canada announced, in connection with its proposed federal budget, its intent to introduce legislation to reduce the maximum allowable rate of interest under its criminal code from an annual percentage rate (“APR”) of 47% to an APR of 35% (the “Proposal”). In connection with the Proposal’s announcement, CURO issued the following statement:

“We are proud of the work we do to provide timely, transparent, affordable and convenient financial solutions to customers who are underserved by mainstream banks, credit card companies and other traditional financial services companies.

As with any proposals or plans by governmental agencies, there will be a process undertaken before any final rule or law is adopted related to the Proposal and any such final rule or law may differ materially from the Proposal. During this process, we look forward to working with the federal government of Canada and other industry participants to demonstrate how our customers will be harmed by the Proposal, particularly at a time when they need a financial service like ours more than ever.

We believe it is too early to determine the long-term impact of the Proposal on the Company’s businesses considering no draft legislation or legislative commentary is available. Accordingly, we will continue to monitor the Proposal and assess its implications as more is known and we will continue to manage our business to serve our customers and maintain an appropriate level of risk adjusted returns for the Company.”

ABOUT CURO

CURO Group Holdings Corp. (NYSE: CURO) is a full-spectrum consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We’ve worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of alternative data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. We operate a number of brands, including Cash Money®, LendDirect®, Flexiti®, Heights Finance, Southern Finance, Covington Credit, Quick Credit and First Heritage Credit.

(CURO-NWS)

View source version on businesswire.com: https://www.businesswire.com/news/home/20230330005566/en/

Investor Relations:

Phone: 844-200-0342

Email: IR@curo.com

Source: CURO Group Holdings Corp.

FAQ

What is CURO's response to the Canadian government's proposed budget on interest rates?

CURO opposes the proposed reduction of maximum allowable interest rates from 47% to 35%, citing potential harm to customers.

How does the Canadian budget proposal affect CURO's business operations?

The proposed interest rate cap may impact CURO's profitability, though the company is monitoring the situation for long-term implications.

What is the current maximum allowable interest rate before the Canadian proposal?

The current maximum allowable interest rate is 47%, set to be reduced to 35% under the proposed budget.

When was the Canadian government's proposed budget announced?

The Canadian government's proposed budget was announced on March 28, 2023.

What actions is CURO planning to take regarding the proposed interest rate changes?

CURO plans to engage with the government to demonstrate potential adverse effects on their customers.