Shares in the UK’s leading pawnbroker plummeted this morning after the firm revealed it was working closely with the City watchdog to review its high-cost short term credit (HCSTC) loans business.
H&T group’s share price crashed 25 per cent in early morning trading, with the firm announcing it has ceased all HSCTC unsecured lending, at least temporarily, while it works with the Financial Conduct Authority (FCA).
The review is focussing on H&T’s creditworthiness assessments and lending processes for HCSTC loans in light of new rule changes over affordability assessments, it said today.
Over the last six years the firm said total customer interest payments were £24m.
The company said: “Should any redress be payable, H&T anticipates being able to fund this from its existing financial resources.”
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The board said “H&T continues to trade well and in line with the dynamics set out in its statement of 30 September 2019.”
H&T’s shares, which were trading at roughly 370p last week, have now fallen to around 275p.