Subprime meltdown: Tricolor enters Chapter 7 amid fraud probe, and First Brands’ $10 B collapse puts credit markets on edge.

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Here is the list of subprime lenders and related firms that have recently collapsed or filed for bankruptcy:

  • Tricolor – Subprime auto lender and used car retailer; filed for Chapter 7 bankruptcy in September 2025 amid fraud allegations and triggered major losses for Barclays
  • First Brands – Auto parts supplier with deep ties to subprime lending channels; collapsed in October 2025, contributing to credit market instability
  • Uplend – Subprime personal loan provider; liquidated after a surge in defaults and investor pullout
  • Sunlight Credit – Regional subprime consumer lender; entered insolvency proceedings due to rising delinquencies and regulatory pressure
  • MetroCap Finance – Auto loan securitization firm; delisted and under investigation for asset-backed securities fraud

 

 

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