NEW YORK (TheStreet) -- Financial services company JGWPT Holdings (JGW) is tumbling on Tuesday after reporting its fourth quarter and following the disclosure it had been served with a Civil Investigative Demand (CIDs) from the Consumer Financial Protection Bureau (CFPB).
By early afternoon, shares had taken off 14.6% to $15.59.
In its fourth quarter, the company earned adjusted net income of $11.2 million, more than half of its year-ago net income, and revenue of $106.6 million, 15.5% lower than a year earlier.
Profits were lower due to additional interest expenses on the company's term loan as well as the impact of an increasing rate environment. Total receivable purchases fell 6.6% to $260.5 million.
In its 10-K filing with the SEC, JGWPT Holdings said of the CFPB's investigation, "The CIDs appear to be designed to broadly solicit general information about the Company and its business. We believe that the Company's practices are fully compliant with applicable law, and we intend to cooperate with the CFPB."
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