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What I took away from World Acceptance's investor call this morning: a) they are going to try a new incentive system for branch managers which might help them to extract more cash from past due accounts, but which definitely allow them to make otherwise-charged-off loans appear to be active until the end of the 2015 tax season. b) they are building on a novel way of collecting on loans in Mexico c) they are not going to use risk-based pricing d) they think there might be something to this whole internet concept, after all.
What if someone told World that they couldn't have it both ways: they could make loans that amortize to the Rule of 78ths or they could refinance them, but not both?
It is not rare for a customer to refinance an installment loan. Some companies report that they originate three times