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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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

Podcast: Afterpay, Family and Investing

If you’re wanting to know more about Afterpay and how to become a better investor, this episode of Rask Group’s Australian Investors Podcast is a ‘must listen’ for serious investors. This episode provides unique insights from an Australian investor who’s keen on some ASX tech shares.