Consumer-lending stocks took a hit last week after Wall Street executives raised concerns about rising delinquencies among lower-income borrowers. The increasing cost of living, coupled with a weakening labor market, has put a strain on many households, leading to higher credit card and auto loan delinquencies.
Results for: Auto Loans
Ally Financial shares tumbled on Tuesday after the company’s CFO revealed deepening credit challenges among borrowers, citing rising inflation and living costs. Delinquencies in the retail auto segment jumped in July and August, exceeding initial forecasts. While Ally will prioritize capital and expense management, it has not yet revised its guidance.