Background

  • Capstone completed due diligence around a prospective investment in a retail installment sales company.

Process

  • We examined state and federal regulations, current and proposed regulations and regulatory guidance and held numerous one-on-one conversations with key stakeholders in the consumer financial services industry, including:
    • Current senior Consumer Financial Protection Bureau (CFPB) officials;
    • Former CFPB enforcement lawyers;
    • Representatives of installment lenders; and
    • Academics.

Outcome

  • We concluded the combination of the payday rule; buying power growth among the company’s customers due to minimum-wage increases; and the likelihood of Internet sales tax harmonization shift would increase the company’s role as a provider of credit and enhance consumer buying power in its desired demographic.
- Capstone LLC -

Washington DC

-Capstone Research Limited-

London