Enova International comments on CFPB Small Dollar Rule
Enova International has completed a preliminary assessment of the Small Dollar Rule released yesterday by the Consumer Financial Protection Bureau. Over the past several years, Enova has rapidly diversified its product offerings to meet consumer preferences for credit. After reviewing the final rule, the company anticipates that if it is implemented without additional changes, products that today comprise approximately 15% to 20% of its second quarter 2017 total revenue will be subject to the short-term loan specific portions of the rule. Domestic products that represent an additional 50% to 55% of revenue may be subject to the changes to the payment pre-authorization process. Enova estimates that revenue for the impacted products would experience less than a 10% decline from current levels. This initial assessment does not take into account potential offsets from changes in the competitive landscape as a result of the final rule, any changes in state regulation or Enova's ongoing diversification efforts. "We are confident in our ability to successfully adapt to these new regulations," said David Fisher, Enova's CEO. "Our technology and experience provide us with a measurable advantage as we take the steps needed to ensure our U.S. consumer products comply with this new regulation. We've worked diligently to diversify our business, which has created significant growth in our installment and line of credit products, resulting in reduced exposure to this rule. We've seen very strong demand in our longer-term products offered by NetCredit, renewed growth in our U.K. business, success in building our small business and Brazil offerings, and good customer interest in Enova Decisions, our Analytics as a Service offering."