The Afterpay Touch Group Ltd (ASX:APT) share price has crashed 18% at the end of the ASX trading day.
The buy now, pay later business appears to have plunged due to an article from Fairfax Media stating it will be subject to a Senate inquiry.
Feeling The Afterpain
According to Fairfax, payday lenders, debt management firms and Afterpay will be under the spotlight in a new Senate inquiry looking at various parts of the finance industry that aren’t currently being investigated by the Hayne Royal Commission.
Labor proposed the inquiry and it has been backed by the Greens, the Centre Alliance and Derryn Hinch.
The inquiry will look at the regulations that govern payday lenders as well as consumer leasing businesses.
Fairfax quoted Gerard Brody from the Consumer Action Law Centre, “If you think the banks, insurers and superannuation funds are ripping people off, they are nothing compared with the exploitative conduct of this sector of the marketplace.”
Afterpay is not currently subject to responsible lending laws but some advocates have argued that it should be.
The Afterpay share price has fallen by 37% since the start of October according to Google Finance. However, it recently revealed revenue growth of 380% in its FY18 result. Read next: Afterpay Touch Group Ltd: The Road Ahead.
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