tldrdaily.news logo
Tag

Consumer Loans

All articles tagged with #consumer loans

business6 months ago

Buy Now, Pay Later Loans to Start Affecting Credit Scores

FICO is launching a new credit scoring model that will incorporate Buy Now, Pay Later loans, potentially affecting the credit scores of millions of Americans by providing a more accurate assessment of their creditworthiness, especially for younger and less established borrowers. However, adoption may be slow due to inconsistent data sharing among BNPL providers and credit bureaus, and concerns remain about the impact on vulnerable communities.

via ABC News - Breaking News, Latest News and Videos|
#business#buy-now-pay-later#consumer-loans
finance1 year ago

Affirm Secures $4B Loan from Sixth Street to Expand Lending

Private investment group Sixth Street is investing $4 billion in a vehicle to purchase loans from US fintech Affirm, enabling Affirm to issue up to $20 billion in new consumer loans over the next three years. This partnership reflects a growing trend where private credit funds collaborate with consumer credit providers to offload debt and free up lending capacity. The deal is part of a broader industry movement, with firms like SoFi and Klarna also engaging in similar agreements to manage risk and expand lending capabilities amid economic challenges.

via Financial Times|
#affirm#buy-now-pay-later#consumer-loans
business1 year ago

Walmart and Capital One Terminate Exclusive Credit Card Partnership

Walmart and Capital One have ended their exclusive consumer credit card agreement, which began in 2019. Despite the termination, cardholders can still use their cards and earn rewards. The split follows disputes over customer service issues, leading to a lawsuit and a federal judge's ruling allowing Walmart to end the partnership early. Capital One will retain ownership of the credit card accounts and convert eligible Walmart cardholders to its own branded rewards products.

via Fox Business|
#business#capital-one#consumer-loans
finance2 years ago

BMO to Close Retail Auto Finance Business, Cuts Jobs

Bank of Montreal (BMO) is closing its indirect retail auto finance business, resulting in job losses, as the bank focuses on other areas. The move comes as BMO's bad debt provisions increased, indicating growing stress on consumers due to rising borrowing costs. The bank will continue to fund contracts submitted and approved prior to the termination date. BMO's consumer loan portfolio includes home equity loans and primarily auto loans, but also loans for boats, recreational vehicles, and motorcycles. The Bank of Canada's data shows higher delinquency rates for vehicle loans, reflecting the strain on consumers' finances. BMO has been expanding in the United States to find new avenues of growth, with the US now accounting for over one-third of its overall profits.

via Yahoo Finance|
#auto-finance#bad-debt-provisions#bmo
finance2 years ago

Wells Fargo CFO predicts increase in net interest income.

Wells Fargo CFO, Mike Santomassimo, expects an upside in net interest income going ahead, despite losses in office loans. The bank had earlier issued guidance for a 10% higher net interest income this year, more than the full-year 2022 level of $45 billion. The San Francisco-based bank also warned that there could be some onetime expenses by the end of the year in terms of severance. Regulators have prohibited the fourth-largest U.S. bank from increasing its assets after a series of scandals over how it treated customers, which has curtailed balance sheet growth and increased regulatory expenses.

via Reuters.com|
#consumer-loans#credit-losses#finance
business2 years ago

Goldman Sachs Struggles with Losses and Revenue Misses.

Goldman Sachs has sold off some loans from its consumer-banking arm, Marcus, resulting in a nearly $500 million loan loss in the business. The bank has been trying to expand into loans and savings products for the less well off, but has faced continuous setbacks, with more than $3 billion in losses tied to that business over the previous years. Goldman's chief financial officer, Denis Coleman, told analysts that the firm still had billions of dollars of consumer loans on its books, having found buyers for just $1 billion so far.

via The New York Times|
#banking#business#consumer-loans