Cockroach Incidents Are a ‘Mini Fire Drill’ for Next Downturn (2)

The business model of Tricolor Holdings didn’t sound especially stable to begin with. The auto lender, based in Irving, Texas, specialized in subprime car loans—that is, lending to people who are relatively unlikely to pay the loan back. “Do you have bad credit? Don’t worry,” the Tricolor website still reads, more than a month after its public implosion. The company marketed itself to undocumented immigrants—even as President Donald Trump promised to carry out “the largest deportation operation in American history.” If you needed one more sign of messiness under the hood, a 2022 exposé found that the lender was selling ...