Quarterly report pursuant to Section 13 or 15(d)

Consumer Receivables

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

5. 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,     December 31,  
    2022     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 %