FSA found Cattles misstated loan book quality using deferments; auditor PwC fined
Cattles plc (Cattles Ltd) and Welcome Financial Services · Subprime consumer lender
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Document authenticity / direct pull
Pulling raw loan-level payment histories would show missed payments hidden by deferments.
Can mislead when: The company can refuse consent, and a refusal is itself a flag. Some banks and co-op banks are not on AA yet.
Unit economics & burn
Re-computing arrears without deferments would show a pre-tax loss, not a profit.
Can mislead when: Cost allocation is a judgement call. Kubr shows its assumptions and lets the user change them.
Third-party confirmation
Direct confirmation with borrowers would show deferments applied without contact.
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Where Kubr services would have helped
Valuation context
Offered in India- C9 Re-computing arrears without deferments would show a pre-tax loss, not a profit.
Financial diligence
Offered in India- C5 Pulling raw loan-level payment histories would show missed payments hidden by deferments.
- C9 Re-computing arrears without deferments would show a pre-tax loss, not a profit.
Model check
Offered in India- C9 Re-computing arrears without deferments would show a pre-tax loss, not a profit.
IC note
Offered in India- C5 Pulling raw loan-level payment histories would show missed payments hidden by deferments.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.