Post-effective amendment to a registration statement that is not immediately effective upon filing

Consumer Receivables

v3.22.2
Consumer Receivables
3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Receivables [Abstract]    
CONSUMER RECEIVABLES

4. CONSUMER RECEIVABLES

The Company’s finance receivables consist of secured personal loans and principal amounts of Instacash advances. Accrued interest receivables represent the interest accrued on the loan receivables based upon the daily principal amount outstanding. Fees receivables represent the amounts due to the Company for tips and instant transfer fees related to the Instacash advance product. Subscription receivables represent the amounts billed to customers for subscription services. The credit quality and future repayment of consumer receivables are dependent upon the customer’s ability to perform under the terms of the agreement. Factors such as unemployment rates and housing values, among others, may impact the customer’s ability to perform under the loan or advance terms. When assessing provision for losses on consumer receivables, the Company takes into account the composition of the outstanding consumer receivables, charge-off rates to date and the forecasted principal loss rates. The tables below show consumer receivables balances as of March 31, 2022 and December 31, 2021 and the consumer receivables activity, charge-off rates and aging by product for the three months ended March 31, 2022 and 2021.

Consumer receivables consisted of the following:

 

March 31,
2022

 

December 31,
2021

Unsecured personal loan receivables

 

$

 

$

1

Secured personal loan receivables

 

 

71,610

 

 

77,491

Loan receivables

 

 

71,610

 

 

77,492

Instacash receivables

 

 

66,951

 

 

62,783

Finance receivables

 

 

138,561

 

 

140,275

Fees receivable

 

 

9,567

 

 

8,366

Membership receivables

 

 

3,408

 

 

3,099

Deferred loan origination costs

 

 

992

 

 

929

Accrued interest receivable

 

 

1,106

 

 

1,072

Receivables, before allowance for credit losses

 

$

153,634

 

$

153,741

Changes in the allowance for losses on consumer receivables were as follows:

 

Three Months Ended
March 31,

   

2022

 

2021

Beginning balance

 

$

22,323

 

 

$

9,127

 

Provision for credit losses on receivables

 

 

23,044

 

 

 

5,708

 

Receivables charged off

 

 

(37,284

)

 

 

(14,436

)

Recoveries

 

 

14,208

 

 

 

9,828

 

Ending balance

 

$

22,291

 

 

$

10,227

 

Changes in the allowance for losses on finance receivables were as follows:

 

Three Months Ended
March 31,

   

2022

 

2021

Beginning balance

 

$

21,625

 

 

$

9,127

 

Provision for credit losses on receivables

 

 

19,502

 

 

 

4,859

 

Finance receivables charged off

 

 

(32,958

)

 

 

(12,962

)

Recoveries

 

 

13,269

 

 

 

9,203

 

Ending balance

 

$

21,438

 

 

$

10,227

 

Changes in the allowance for losses on fees receivable were as follows:

 

Three Months Ended
March 31,

   

2022

 

2021

Beginning balance

 

$

420

 

 

$

 

Provision for credit losses on receivables

 

 

2,001

 

 

 

615

 

Fees receivable charged off

 

 

(2,708

)

 

 

(948

)

Recoveries

 

 

779

 

 

 

333

 

Ending balance

 

$

492

 

 

$

 

Changes in the allowance for losses on subscription receivables were as follows:

 

Three Months Ended
March 31,

   

2022

 

2021

Beginning balance

 

$

278

 

 

$

 

Provision for credit losses on receivables

 

 

1,541

 

 

 

234

 

Membership receivables charged off

 

 

(1,618

)

 

 

(526

)

Recoveries

 

 

160

 

 

 

292

 

Ending balance

 

$

361

 

 

$

 

The following is an assessment of the repayment performance of loans as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the loans receivable portfolio:

 

March 31, 2022

 

December 31, 2021

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

60,642

 

84.7

%

 

$

66,514

 

85.8

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

5,887

 

8.2

%

 

 

6,577

 

8.5

%

61 to 90 days

 

 

5,081

 

7.1

%

 

 

4,401

 

5.7

%

Total delinquency

 

 

10,968

 

15.3

%

 

 

10,978

 

14.2

%

Loan receivables before allowance for loan losses

 

$

71,610

 

100.0

%

 

$

77,492

 

100.0

%

The following is an assessment of the repayment performance of Instacash receivables as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the Instacash receivables portfolio:

 

March 31, 2022

 

December 31, 2021

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

60,364

 

90.2

%

 

$

55,963

 

89.1

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

6,587

 

9.8

%

 

 

6,820

 

10.9

%

61 to 90 days

 

 

 

0.0

%

 

 

 

0.0

%

Total delinquency

 

 

6,587

 

9.8

%

 

 

6,820

 

10.9

%

Instacash receivables before allowance for loan losses

 

$

66,951

 

100.0

%

 

$

62,783

 

100.0

%

The following is an assessment of the repayment performance of fees receivable as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the fees receivable portfolio:

 

March 31, 2022

 

December 31, 2021

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

7,725

 

80.7

%

 

$

6,682

 

79.9

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

1,842

 

19.3

%

 

 

1,684

 

20.1

%

61 to 90 days

 

 

 

0.0

%

 

 

 

0.0

%

Total delinquency

 

 

1,842

 

19.3

%

 

 

1,684

 

20.1

%

Fees receivable before allowance for loan
losses

 

$

9,567

 

100.0

%

 

$

8,366

 

100.0

%

The following is an assessment of the repayment performance of subscription receivables as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the subscription receivables portfolio:

 

March 31, 2022

 

December 31, 2021

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

2,486

 

72.9

%

 

$

2,227

 

71.8

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

466

 

13.7

%

 

 

514

 

16.6

%

61 to 90 days

 

 

456

 

13.4

%

 

 

358

 

11.6

%

Total delinquency

 

 

922

 

27.1

%

 

 

872

 

28.2

%

Membership receivables before allowance for loan losses

 

$

3,408

 

100.0

%

 

$

3,099

 

100.0

%

4. RECEIVABLES

The Company’s finance receivables consist of secured personal loans, unsecured personal loans and principal amounts of Instacash advances. Accrued interest receivables represent the interest accrued on the loan receivables based upon the daily principal amount outstanding. Fees receivables represent the amounts due to the Company for tips and instant transfer fees related to the Instacash advance product. Membership receivables represent the amounts billed to customers for membership subscription services. The credit quality and future repayment of finance receivables are dependent upon the customer’s ability to perform under the terms of the agreement. Factors such as unemployment rates and housing values, among others, may impact the customer’s ability to perform under the loan or advance terms. When assessing provision for losses on finance receivables, the Company takes into account the composition of the outstanding finance receivables, charge-off rates to date and the forecasted principal loss rates. Please see the tables below for the finance receivable activity, charge-off rates and aging by product for the twelve months ended December 31, 2021 and 2020. The Company has experienced significant growth in Instacash, a shorter-term advance product with lower charge-off rates than loans. As Instacash has become a larger component of finance receivable activity, the overall charge-off rate has decreased significantly.

Receivables consisted of the following:

 

December 31,
2021

 

December 31,
2020

Unsecured personal loan receivables

 

$

1

 

$

66

Secured personal loan receivables

 

 

77,491

 

 

43,804

Loan receivables

 

 

77,492

 

 

43,870

Instacash receivables

 

 

62,783

 

 

18,888

Finance receivables

 

 

140,275

 

 

62,758

Fees receivable

 

 

8,366

 

 

2,913

Membership receivables

 

 

3,099

 

 

1,885

Deferred loan origination costs

 

 

929

 

 

615

Accrued interest receivable

 

 

1,072

 

 

623

Receivables, before allowance for loan losses

 

$

153,741

 

$

68,794

Changes in the allowance for losses on receivables were as follows:

 

Twelve Months Ended
December 31,

   

2021

 

2020

Beginning balance

 

$

9,127

 

 

$

6,613

 

Provision for loss on receivables

 

 

60,749

 

 

 

21,294

 

Receivables charged off

 

 

(75,557

)

 

 

(39,004

)

Recoveries

 

 

28,004

 

 

 

20,224

 

Ending balance

 

$

22,323

 

 

$

9,127

 

Changes in allowance for losses on finance receivables were as follows:

 

Twelve Months Ended
December 31,

   

2021

 

2020

Beginning balance

 

$

9,127

 

 

$

6,613

 

Provision for loss on receivables

 

 

51,975

 

 

 

18,082

 

Finance receivables charged off

 

 

(65,711

)

 

 

(33,719

)

Recoveries

 

 

26,234

 

 

 

18,151

 

Ending balance

 

$

21,625

 

 

$

9,127

 

Changes in allowance for losses on membership receivables were as follows:

 

Twelve Months Ended
December 31,

   

2021

 

2020

Beginning balance

 

$

 

 

$

 

Provision for loss on receivables

 

 

3,170

 

 

 

1,856

 

Membership receivables charged off

 

 

(3,446

)

 

 

(3,620

)

Recoveries

 

 

554

 

 

 

1,764

 

Ending balance

 

$

278

 

 

$

 

Changes in allowance for losses on fees receivable were as follows:

 

Twelve Months Ended
December 31,

   

2021

 

2020

Beginning balance

 

$

 

 

$

 

Provision for loss on receivables

 

 

5,604

 

 

 

1,356

 

Fees receivable charged off

 

 

(6,400

)

 

 

(1,665

)

Recoveries

 

 

1,216

 

 

 

309

 

Ending balance

 

$

420

 

 

$

 

The following is an assessment of the credit quality of finance receivables as of December 31, 2021 and 2020 and presents the contractual delinquency of the finance receivable portfolio:

 

December 31,
2021

 

December 31,
2020

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

122,477

 

87.3

%

 

$

54,247

 

86.4

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

13,397

 

9.6

%

 

 

6,148

 

9.8

%

61 to 90 days

 

 

4,401

 

3.1

%

 

 

2,363

 

3.8

%

Total delinquency

 

 

17,798

 

12.7

%

 

 

8,511

 

13.6

%

Finance receivables before allowance for loan losses

 

$

140,275

 

100.0

%

 

$

62,758

 

100.0

%

The following is an assessment of the credit quality of loans as of December 31, 2021 and 2020 and presents the contractual delinquency of the finance receivable loans portfolio:

 

December 31,
2021

 

December 31,
2020

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

66,514

 

85.8

%

 

$

38,133

 

86.9

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

6,577

 

8.5

%

 

 

3,374

 

7.7

%

61 to 90 days

 

 

4,401

 

5.7

%

 

 

2,363

 

5.4

%

Total delinquency

 

 

10,978

 

14.2

%

 

 

5,737

 

13.1

%

Loan receivables before allowance for loan losses

 

$

77,492

 

100.0

%

 

$

43,870

 

100.0

%

The following is an assessment of the credit quality of Instacash as of December 31, 2021 and 2020 and presents the contractual delinquency of the finance receivable Instacash portfolio:

 

December 31,
2021

 

December 31,
2020

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

55,963

 

89.1

%

 

$

16,114

 

85.3

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

6,820

 

10.9

%

 

 

2,774

 

14.7

%

61 to 90 days

 

 

 

0.0

%

 

 

 

0.0

%

Total delinquency

 

 

6,820

 

10.9

%

 

 

2,774

 

14.7

%

Instacash receivables before allowance for loan losses

 

$

62,783

 

100.0

%

 

$

18,888

 

100.0

%

The following is an assessment of the credit quality of membership receivables as of December 31, 2021 and 2020 and presents the contractual delinquency of the membership receivable portfolio:

 

December 31,
2021

 

December 31,
2020

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

2,227

 

71.8

%

 

$

1,586

 

84.1

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

514

 

16.6

%

 

 

168

 

9.0

%

61 to 90 days

 

 

358

 

11.6

%

 

 

131

 

6.9

%

Total delinquency

 

 

872

 

28.2

%

 

 

299

 

15.9

%

Membership receivables before allowance for loan losses

 

$

3,099

 

100.0

%

 

$

1,885

 

100.0

%

The following is an assessment of the credit quality of fees receivable as of December 31, 2021 and 2020 and presents the contractual delinquency of the fees receivable portfolio:

 

December 31,
2021

 

December 31,
2020

   

Amount

 

Percent

 

Amount

 

Percent

Current

 

$

6,682

 

79.9

%

 

$

2,435

 

83.6

%

   

 

     

 

 

 

     

 

Delinquency:

 

 

     

 

 

 

     

 

31 to 60 days

 

 

1,684

 

20.1

%

 

 

478

 

16.4

%

61 to 90 days

 

 

 

0.0

%

 

 

 

0.0

%

Total delinquency

 

 

1,684

 

20.1

%

 

 

478

 

16.4

%

Fees receivable before allowance for loan losses

 

$

8,366

 

100.0

%

 

$

2,913

 

100.0

%