(MT Newswires) -- LendingClub CEO Scott Sanborn reports that Federal Reserve data shows an increase in delinquencies, returning to levels seen prior to the COVID-19 pandemic. He acknowledges that, following the pandemic, consumers reduced their debts thanks to savings made by not travelling and taking advantage of government assistance.

However, with the economic recovery, increased spending and inflation, consumer trends have changed, leading to higher defaults in 2021 and 2022. Inflation, unlike unemployment, affects the whole population, contributing to an increase in credit card arrears.

Sanborn points out that, although defaults have increased in all credit categories, they are not alarming and are tending to stabilise. He says that LendingClub's credit quality is strong, with defaults on average 40% lower than competitors. He is confident about the company's prospects, citing a record $1.3 trillion credit card debt market and a widening gap between credit card rates and LendingClub's offerings.

Bloomberg videos