v3.26.1
Finance Receivables
 6 Months Ended
Jun. 30, 2026
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 collateral, or are unsecured. Auto finance loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles at the point of purchase through our dealership network. 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, 2026
Gross finance receivables *$21,002 $2,633 $23,635 $1,128 $24,763 
Unearned fees
(260)(40)(300)— (300)
Accrued finance charges and fees363 29 392 — 392 
Deferred origination costs224 50 274 16 290 
Total$21,329 $2,672 $24,001 $1,144 $25,145 
December 31, 2025
Gross finance receivables *$21,086 $2,438 $23,524 $925 $24,449 
Unearned fees
(258)(42)(300)— (300)
Accrued finance charges and fees382 28 410 — 410 
Deferred origination costs220 43 263 11 274 
Total$21,430 $2,467 $23,897 $936 $24,833 
* 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, interest, and fees.

WHOLE LOAN SALE TRANSACTIONS

We have whole loan sale flow agreements with third parties. The Company is committed to sell a remaining total of $1.8 billion gross receivables of newly originated unsecured personal loans along with any associated accrued interest with a current term of approximately two years. 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 $353 million and $693 million of gross finance receivables during the three and six months ended June 30, 2026, respectively, and $260 million and $514 million of gross finance receivables during the three and six months ended June 30, 2025, respectively. The gain on the sales were $16 million and $32 million during the three and six months ended June 30, 2026, respectively, and $17 million and $33 million during the three and six months ended June 30, 2025, 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,
20262025
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
 
Net accrued finance charges reversed
$41 $3 $37 $2 
Finance charges recognized from the contractual interest portion of payments received on nonaccrual loans
6—5—
Six Months Ended June 30,
20262025
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
Net accrued finance charges reversed
$88 $7 $78 $6 
Finance charges recognized from the contractual interest portion of payments received on nonaccrual loans
121101

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)
2026202520262025
Net accrued finance charges and fees reversed$23 $18 $46 $35 

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

(dollars in millions)20262025202420232022PriorTotal
June 30, 2026
Performing
Current$5,741 $7,475 $3,878 $1,899 $891 $352 $20,236 
30-59 days past due21 127 93 63 44 26 374 
60-89 days past due10 84 59 37 25 14 229 
Total performing5,772 7,686 4,030 1,999 960 392 20,839 
Nonperforming (Nonaccrual)
90+ days past due6 174 134 87 54 35 490 
Total$5,778 $7,860 $4,164 $2,086 $1,014 $427 $21,329 
Gross charge-offs *
$3 $264 $343 $233 $134 $76 $1,053 
* Represents gross charge-offs for the six months ended June 30, 2026.
(dollars in millions)20252024202320222021PriorTotal
December 31, 2025
Performing
Current$10,149 $5,335 $2,759 $1,372 $439 $146 $20,200 
30-59 days past due101 120 85 60 29 12 407 
60-89 days past due63 82 53 36 17 7 258 
Total performing10,313 5,537 2,897 1,468 485 165 20,865 
Nonperforming (Nonaccrual)
90+ days past due99 191 135 86 38 16 565 
Total$10,412 $5,728 $3,032 $1,554 $523 $181 $21,430 
Gross charge-offs *
$3 $211 $337 $245 $112 $47 $955 
* Represents gross charge-offs for the six months ended June 30, 2025.

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)20262025202420232022PriorTotal
June 30, 2026
Performing
Current$707 $892 $534 $250 $107 $34 $2,524 
30-59 days past due9 36 25 13 8 4 95 
60-89 days past due2 10 7 4 2 1 26 
Total performing718 938 566 267 117 39 2,645 
Nonperforming (Nonaccrual)
90+ days past due1 11 8 4 2 1 27 
Total$719 $949 $574 $271 $119 $40 $2,672 
Gross charge-offs *
$1 $28 $29 $16 $8 $3 $85 
* Represents gross charge-offs for the six months ended June 30, 2026.

(dollars in millions)20252024202320222021PriorTotal
December 31, 2025
Performing
Current$1,095 $667 $329 $152 $48 $9 $2,300 
30-59 days past due34 34 21 13 6 1 109 
60-89 days past due8 10 5 3 1 — 27 
Total performing1,137 711 355 168 55 10 2,436 
Nonperforming (Nonaccrual)
90+ days past due8 12 6 3 2 — 31 
Total$1,145 $723 $361 $171 $57 $10 $2,467 
Gross charge-offs *
$2 $22 $20 $15 $5 $1 $65 
* Represents gross charge-offs for the six months ended June 30, 2025.
The following is a summary of credit cards by number of days delinquent:
(dollars in millions)June 30, 2026December 31, 2025
Current
$1,028 $820 
30-59 days past due
29 26 
60-89 days past due
24 24 
90+ days past due
63 66 
Total
$1,144 $936 

There were no credit cards that were converted to term loans at June 30, 2026 or December 31, 2025.

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 $732 million and $500 million at June 30, 2026 and December 31, 2025, respectively.

MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty. 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,
20262025
(dollars in millions)Personal Loans
Auto
 Finance
Personal Loans
Auto
 Finance
 
Interest rate reduction and term extension$101$10$93 $6
Interest rate reduction and principal forgiveness971122 —
Total modifications to borrowers experiencing financial difficulties$198$11$215 $6
Modifications as a percent of net finance receivables by class
0.93 %0.39 %1.03 %0.26 %
Six Months Ended June 30,
20262025
(dollars in millions)Personal Loans
Auto
 Finance
Personal Loans
Auto
 Finance
Interest rate reduction and term extension$201$17$180$12
Interest rate reduction and principal forgiveness1751229—
Total modifications to borrowers experiencing financial difficulties$376$18$409$12
Modifications as a percent of net finance receivables by class
1.76 %0.68 %1.96 %0.54 %
The financial effect of modifications made during the period was as follows:
Three Months Ended June 30,
20262025
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
 
Net finance receivables 
Weighted-average interest rate reduction21.50 %13.42 %18.41 %13.40 %
Weighted-average term extension (months)29172415
Principal/interest forgiveness$11$—$9 $—
Six Months Ended June 30,
20262025
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
Net finance receivables
Weighted-average interest rate reduction21.26 %13.92 %17.28 %13.17 %
Weighted-average term extension (months)30182415
Principal/interest forgiveness$20$1$16 $—

The performance of finance receivables modified within the previous 12 months by delinquency status was as follows:
June 30, 2026 (a)June 30, 2025 (b)
(dollars in millions)Personal Loans
Auto
Finance
Personal Loans
Auto
Finance
Current
$518 $23 $527 $16 
30-59 days past due
49 3 57 3 
60-89 days past due33 2 40 1 
90+ days past due
68 2 75 1 
Total
$668 $30 $699 $21 
(a) Excludes $68 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 $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.
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,
20262025
(dollars in millions)
Personal
Loans
Auto
 Finance
Personal Loans
Auto
 Finance
Interest rate reduction and term extension$31 $1 $29 $1 
Interest rate reduction and principal forgiveness17 — 18 — 
Total
$48 $1 $47 $1 
Six Months Ended June 30,
20262025
(dollars in millions)
Personal
Loans
Auto
 Finance
Personal Loans
Auto
 Finance
Interest rate reduction and term extension$43 $2 $39 $1 
Interest rate reduction and principal forgiveness20 — 22 — 
Total
$63 $2 $61 $1 

Modifications made to credit cards were immaterial for the three and six months ended June 30, 2026 and 2025.