Canadian subprime lender Goeasy Ltd. suspended its dividend, withdrew its outlook and said it will write off an additional C$233 million ($172 million) in consumer loans, interest and fees. The shares plunged as much as 39%.
The problems stem from loans for autos and “powersports” equipment, a category that includes items such as all-terrain vehicles. The Mississauga, Ontario-based firm said it expects its net charge-off rate — a measure of loans that it doesn’t expect to collect on — to be just below 13% for last year and to rise into the mid-teens in 2026.
Subprime Firm Goeasy Dives 39% as Trouble Emerges in Auto Loans
