- Deep under water on their shorts of installment-loan lender World Acceptance Corp. (WRLD), hedge funds are pressing for a D.C. bailout, reports Bloomberg, asking lawmakers, the CFPB, and consumer advocacy groups to investigate the firm. Among the hedge funds is Whitney Tilson's Kase Capital (is he still short Herbalife as well?).
- Not exactly a payday lender, WRLD offers small loans to consumers who have no access to other forms of credit. They operate in 14 states, with the loans averaging about $1,200 and paid off in monthly installments.
- The hedge funds' criticism of WRLD centers on its sales of credit insurance on loans which covers payments during an unforeseen event. Citron - also negative on the stock - notes Capital One and Discover have been fined over deceptive practices for similar add-on products.
- "We are under constant attack from the self-serving short sellers," says CEO Alexander McLean.
- Also in the industry: LEAF, ATLC, CSH, EZPW, DLLR.
Shorts look to D.C. for help on World Acceptance
Oct 30 2013, 08:11 ET