Company news: Mr Rental
Major regulatory changes are coming in relation to what is colloquially known as pay-day lending, as well as consumer leasing. Limits on interest rates, repayments as a portion of income, and limits on the number of loans per customer are some of the measures. Short term lending and leasing arrangements will become fairer, especially for lower-income customers.
Alternative and Equity investors have exposure to Mr Rental. Mr Rental rents whitegoods and electronics through owned and franchised stores around Australia. With a sustainable business model not designed to gouge low-income customers, its operations are not caught up in the changes mentioned above - if anything it could be a beneficiary (e.g. through increased volumes).