Thorn Group crashed to a loss of A$25.6 million in the six months to September, after paying $27.9 million to settle a class action claim.The company said that if the settlement expense and the cost of a strategic review were excluded, net profit would have been $2 million, compared with a profit of $2.4 million for the previous corresponding period.Even allowing for the settlement cost, the business did not have a great half. Revenue fell 5.8 per cent to $104.9 million, compared with the previous corresponding period.Impairment losses on loans and receivables rose 30 per cent to $17.3 million.The consumer leasing division, Radio Rentals, increased EBIT from $3.5 million to $6.9 million. However, this was largely driven by lower expenses. Installations fell from 42,609 in the September half last year to 39,813 in the latest half. The value of the lease book fell and receivables fell.Thorn Business Finance originated $78.6 million of receivables - down from $84.6 million in the previous corresponding period. The value of the business finance receivables book fell from $333.2 million to $317.9 million year on year.Business finance EBIT fell from $13.5 million to $8.9 million.The company said it had resolved some capital constraints, expanding "the parameters" of its debt warehouse and raising $34 million of capital, "so the division can look forward to gradually growing its book."Over the past few months the company has had a lot of change in its senior ranks. Chief executive Tim Luce resigned in August. He has been replaced by former FlexiGroup executive Peter Lirantzis, who will join the company in February.Last month Thorn hired a new general counsel and head of risk, corporate lawyers Alexandra Rose.Chair David Foster called it quits, along with directors Belinda Gibson and Andrew Stevens.Former Aristocrat Leisure chief executive Paul Oneile joined the board as an independent non-executive director.The company has been operating under an enforceable undertaking with ASIC. The EU relates to responsible lending failures. Deloitte was brought in as an independent expert to make recommendations for improvements to the company's credit processes.In January last year, Thorn Australia, a subsidiary of Thorn Group, agreed to refund or write off $6.1 million of default fees and charges relating to 60,000 leases, after it was found to have contravened responsible lending rules.The company also agreed to refund $13.8 million of excess lease payments. And the Federal Court ordered it to pay a $2 million fine.ASIC said that between 2012 and 2015 Thorn had a flawed credit assessment process in place. It failed to make reasonable inquiries about each consumer's financial situation and failed to take reasonable steps to verify each customer's financial situation.The company said in yesterday's financial report that it expected the EU to be resolved soon.