Consumer lender tightens up loan criteria

Flexigroup, who provide credit instore for computer and home appliances says it has tightened credit criteria for loan applicants and has warned investors that it faces a tough outlook in 2009. Net profit was down for the first half of the financial year by 13 per cent to $14.6 million.

Flexigroup said it was increasing provisions for loss making loans by 30 per cent to $12 million. Lending losses were up 24 per cent in the first half to $10.3 million, compared to the previous corresponding period.

Loans that are behind by 90 days or more have remained stable at about 0.8 per cent of the company's total loan book.

Source: The Australian Financial Review