v3.25.2
Finance Receivables
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Finance Receivables
3. Finance Receivables

Our finance receivables consist of consumer loans and credit cards. Consumer loans include personal loans and auto finance. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. Auto finance includes automobile retail installment contracts originated at the point of purchase through our dealership network. Auto finance loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.

Components of our net finance receivables were as follows:
Consumer Loans
(dollars in millions)Personal Loans
Auto Finance
Total Consumer Loans
Credit CardsTotal
June 30, 2025
Gross finance receivables *$20,506 $2,283 $22,789 $742 $23,531 
Unearned fees
(244)(39)(283)— (283)
Accrued finance charges and fees349 24 373 — 373 
Deferred origination costs203 36 239 10 249 
Total$20,814 $2,304 $23,118 $752 $23,870 
December 31, 2024
Gross finance receivables *$20,514 $2,061 $22,575 $632 $23,207 
Unearned fees
(239)(32)(271)— (271)
Accrued finance charges and fees356 22 378 — 378 
Deferred origination costs202 27 229 11 240 
Total$20,833 $2,078 $22,911 $643 $23,554 
* Consumer loan gross finance receivables equal the unpaid principal balance net of unamortized discount or premium. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the unpaid principal balance, billed interest, and fees.

WHOLE LOAN SALE TRANSACTIONS

We have whole loan sale flow agreements with third parties, with current terms of less than one year, in which we agreed to sell a remaining total of $450 million gross receivables of newly originated unsecured personal loans along with any associated accrued interest. Loans sold are derecognized from our balance sheet at the time of sale. We service the loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues in our condensed consolidated statements of operations.

We sold $260 million and $514 million of gross finance receivables during the three and six months ended June 30, 2025, respectively, and $193 million and $303 million of gross finance receivables during the three and six months ended June 30, 2024, respectively. The gain on the sales were $17 million and $33 million during the three and six months ended June 30, 2025, respectively, and $6 million and $12 million during the three and six months ended June 30, 2024, respectively.

CREDIT QUALITY INDICATOR

We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio.

When consumer loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. We consider our consumer loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. All consumer loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.
The following table below is a summary of finance charges on our consumer loans:
Three Months Ended June 30,
20252024
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
 
Net accrued finance charges reversed
$37 $2 $36 $2 
Finance charges recognized from the contractual interest portion of payments received on nonaccrual loans
5—4—
Six Months Ended June 30,
20252024
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
Net accrued finance charges reversed
$78 $6 $78 $3 
Finance charges recognized from the contractual interest portion of payments received on nonaccrual loans
10191

We accrue finance charges and fees on credit cards until charge-off at 180 days contractually past due, at which point we reverse finance charges and fees previously accrued.

Net accrued finance charges and fees reversed on credit cards were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(dollars in millions, except per share amounts)2025202420252024
Net accrued finance charges and fees reversed$18 $8 $35 $14 

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:

(dollars in millions)20252024202320222021PriorTotal
June 30, 2025
Performing
Current$5,475 $7,326 $3,912 $2,051 $733 $245 $19,742 
30-59 days past due22 123 102 75 37 17 376 
60-89 days past due11 79 64 43 21 10 228 
Total performing5,508 7,528 4,078 2,169 791 272 20,346 
Nonperforming (Nonaccrual)
90+ days past due5 158 141 97 47 20 468 
Total$5,513 $7,686 $4,219 $2,266 $838 $292 $20,814 
Gross charge-offs *
$3 $211 $337 $245 $112 $47 $955 
* Represents gross charge-offs for the six months ended June 30, 2025.
(dollars in millions)20242023202220212020PriorTotal
December 31, 2024
Performing
Current$9,820 $5,337 $2,913 $1,143 $272 $155 $19,640 
30-59 days past due89 129 100 48 14 11 391 
60-89 days past due55 86 62 32 8 6 249 
Total performing9,964 5,552 3,075 1,223 294 172 20,280 
Nonperforming (Nonaccrual)
90+ days past due84 211 150 74 20 14 553 
Total$10,048 $5,763 $3,225 $1,297 $314 $186 $20,833 
Gross charge-offs *
$2 $287 $424 $223 $61 $43 $1,040 
* Represents gross charge-offs for the six months ended June 30, 2024.

The following tables below are a summary of our auto finance loans by the year of origination and number of days delinquent:

(dollars in millions)20252024202320222021PriorTotal
June 30, 2025
Performing
Current$614 $834 $432 $211 $73 $18 $2,182 
30-59 days past due8 30 19 13 7 2 79 
60-89 days past due2 9 5 3 1 — 20 
Total performing624 873 456 227 81 20 2,281 
Nonperforming (Nonaccrual)
90+ days past due1 10 6 4 1 1 23 
Total$625 $883 $462 $231 $82 $21 $2,304 
Gross charge-offs *
$2 $22 $20 $15 $5 $1 $65 
* Represents gross charge-offs for the six months ended June 30, 2025.

(dollars in millions)20242023202220212020PriorTotal
December 31, 2024
Performing
Current$1,007 $538 $273 $101 $21 $12 $1,952 
30-59 days past due25 24 19 10 2 1 81 
60-89 days past due6 7 5 2 — — 20 
Total performing1,038 569 297 113 23 13 2,053 
Nonperforming (Nonaccrual)
90+ days past due6 9 7 2 — 1 25 
Total$1,044 $578 $304 $115 $23 $14 $2,078 
Gross charge-offs *
$1 $13 $15 $5 $1 $— $35 
* Represents gross charge-offs for the six months ended June 30, 2024.
The following is a summary of credit cards by number of days delinquent:
(dollars in millions)June 30, 2025December 31, 2024
Current
$665 $558 
30-59 days past due
20 20 
60-89 days past due
18 17 
90+ days past due
49 48 
Total
$752 $643 

There were no credit cards that were converted to term loans at June 30, 2025 or December 31, 2024.

UNFUNDED LENDING COMMITMENTS

Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $438 million and $336 million at June 30, 2025 and December 31, 2024, respectively.

MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty and when we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable.

The period-end carrying value of net finance receivables modified during the period was as follows:
Three Months Ended June 30,
20252024
(dollars in millions)Personal Loans
Auto
 Finance
Personal Loans
Auto
 Finance
 
Interest rate reduction and term extension$93$6$102 $5
Interest rate reduction and principal forgiveness122—110 —
Total modifications to borrowers experiencing financial difficulties$215$6$212 $5
Modifications as a percent of net finance receivables by class
1.03 %0.26 %1.05 %0.29 %
Six Months Ended June 30,
20252024
(dollars in millions)Personal Loans
Auto
 Finance
Personal Loans
Auto
 Finance
Interest rate reduction and term extension$180$12$233 $9
Interest rate reduction and principal forgiveness229—215 —
Total modifications to borrowers experiencing financial difficulties$409$12$448 $9
Modifications as a percent of net finance receivables by class
1.96 %0.54 %2.23 %0.51 %
The financial effect of modifications made during the period was as follows:
Three Months Ended June 30,
20252024
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
 
Net finance receivables 
Weighted-average interest rate reduction18.41 %13.40 %19.48 %13.83 %
Weighted-average term extension (months)24151915
Principal/interest forgiveness$9$—$10 $—
Six Months Ended June 30,
20252024
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
Net finance receivables
Weighted-average interest rate reduction17.28 %13.17 %18.41 %12.20 %
Weighted-average term extension (months)24152323
Principal/interest forgiveness$16$—$21 $—

The performance of finance receivables modified within the previous 12 months by delinquency status was as follows:
June 30, 2025 (a)June 30, 2024 (b)
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
Current
$527 $16 $576 $8 
30-59 days past due
57 3 61 2 
60-89 days past due40 1 46 1 
90+ days past due
75 1 93 1 
Total
$699 $21 $776 $12 
(a) Excludes $80 million of personal loan receivables that were modified and subsequently charged off within the previous 12 months. Auto finance receivables that were modified and subsequently charged off within the previous 12 months were immaterial.
(b) Excludes $49 million of personal loan receivables that were modified and subsequently charged off. Auto finance receivables that were modified and subsequently charged off were immaterial.
The period-end carrying value of finance receivables that defaulted during the period to cause the receivable to be considered nonperforming (90 days or more contractually past due) and had been modified within the 12 months preceding the default was as follows:
Three Months Ended June 30,
20252024
(dollars in millions)
Personal
Loans
Auto
 Finance
Personal Loans
Auto
 Finance
Interest rate reduction and term extension$29 $1 $39 $— 
Interest rate reduction and principal forgiveness18 — 14 — 
Total
$47 $1 $53 $— 
Six Months Ended June 30,
20252024
(dollars in millions)
Personal
Loans
Auto
 Finance
Personal Loans
Auto
 Finance
Interest rate reduction and term extension$39 $1 $83 $1 
Interest rate reduction and principal forgiveness22 — 31 — 
Total
$61 $1 $114 $1 

Modifications made to credit cards were immaterial for the three and six months ended June 30, 2025 and 2024.