Subprime Auto Lending

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More banks take hits from auto lender's bankruptcy
American Banker· 2025-09-11 20:50
Key Insight: Tricolor's business model differed from other auto finance companies, which could have contributed to its problems.What's at Stake: It's unclear how many more lenders may take losses due to connections with Tricolor, or on subprime auto loans.Forward Look: A former Tricolor lawyer said the federal government is investigating the situation.A subprime auto lender's bankruptcy due to alleged fraud is dealing blows to a wide range of institutions — from a community bank in Louisiana to America's bi ...
Fifth Third borrower goes bankrupt after bank takes big loss
American Banker· 2025-09-10 20:22
Key Insight: Tricolor Holdings specialized in subprime auto loans to undocumented immigrants in the South and Southwest.Supporting Data: The rise in subprime auto loan delinquency rates has been especially pronounced at auto finance companies.Forward Look: Fifth Third is reviewing its risk management protocols to see if it can catch future instances of fraud sooner.Subprime auto lender Tricolor Holdings filed for bankruptcy Wednesday, hours after Fifth Third Bancorp said it is taking a roughly $200 million ...