DFC Global Corporation Under Regulatory Scrutiny

By on May 14, 2013

On April 1, 2013, shares of DFC Global Corporation (NASDAQ: DLLR) declined approximately 22% to close at $13.04 after the company lowered its fiscal 2013 diluted operating earnings guidance of $1.70 to $1.80 per share from the its  previous estimate of $2.35 to $2.45 per share.

Then on May 10, 2013, DFC Global disclosed in its Form-10Q, filed with the Securities and Exchange Commission, that the Consumer Financial Protection Bureau (CFPB) examined DFC Global’s MILES program in fiscal 2013.  As a result of the agency’s findings, the CFPB will continue to probe the company and look into the marketing of certain vehicle service and insurance products and to the requirement that MILES program loans be repaid via a military allotment.