Citron Research is out with a new report this time attacking Corp. (NASDAQ:WRLD). Citron Research says that the company is completely reliant upon ‘predatory loan practices.’ They believe that World Acceptance Corp. (NASDAQ:WRLD) is vunerable to a crackdown by regulators as the Government has already shut down two major credit card issuers.
World Acceptance Corp. (NASDAQ:WRLD)’s utter dependence on predatory loan practices has just been exposed top-to-bottom by Pro Publica, whose award-winning journalism is well above the usual stock market noise. Citron adds the investment-related perspective that this company draws over half its profitability from dubious “credit insurance”, a loan add-on that is clearly deceptive to consumers. The CFPB has already cracked down on two major credit card issuers. Citron believes World Acceptance is very vulnerable. Citron Research sends its Kudos to Pro Publica.
They state further:
Citron initially examined World Acceptance Corp. (NASDAQ:WRLD) in May 2009, documenting how the company systematically abuses the economically disadvantaged with its egregious and downright sleazy lending tactics. The stock was $20, and the economy was on the ropes.
Citron thought the US government would inevitably intervene to protect consumers. Obviously, consumer protection has been slower than we expected. Today World Acceptance Corp. (NASDAQ:WRLD)s book of sub-sub-sub-prime consumer loans has swollen to $1.1 billion, the stock perched at $90, and its day of reckoning may have just arrived.
An outstanding piece of journalism, just published by Pulitzer Prize winning ProPublica, which has no dog in the fight with regard to the stock or the market, has served up World Acceptance on a silver platter to the enforcers at the CFPB. They convincingly document how WRLD is engaged in systematic fraud by forcing unsuspecting customers to buy credit insurance.
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Citron Research on World Acceptance Corp. (NASDAQ:WRLD) below in scribd
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