QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Interest Rate Sensitivity and Market Risk
+Added: Interest Rate Sensitivity and Market Risk 
In the ordinary course of business, we are exposed to various risks, particularly related to our private label credit and general purpose credit cards as well as our Auto Finance segment. 
−Removed: These risks primarily relate to interest rate risk, credit risk, market return risk, payment risk and counterparty risk.
+Added: These risks primarily relate to interest rate risk, credit risk, market return risk, payment risk and counterparty risk, each of which is described below.
Interest Rate Risk
Interest rate risk reflects the risk that, as interest rates rise on secured debt, we are unable to reprice the underlying assets that serve as collateral for that debt. 
−Removed: Certain of our financing facilities are priced at spreads over floating interest rates (such as LIBOR, the Secured Overnight Financing Rate ("SOFR"), the prime rate or commercial paper rates) and, as such, increases in those rates could have a negative impact on our results of operations.
+Added: Certain of our financing facilities are priced at spreads over floating interest rates (such as LIBOR, SOFR, the prime rate or commercial paper rates) and, as such, increases in those rates could have a negative impact on our results of operations.
We mitigate this risk by minimizing the amount of debt subject to interest rate fluctuations with the significant majority of our debt facilities bearing fixed interest rates. 
To the extent interest rates on our non-fixed interest rate facilities increase, our margin (between a floating cost of funds and a fixed rate interest income stream on the underlying collateral) may become compressed to the extent we are unable to reprice those assets.
−Removed: All of our Auto Finance segment’s loans receivable were fixed rate amortizing loans and typically are not eligible to be repriced.
+Added: All of our Auto Finance segment’s loans receivable are fixed rate amortizing loans and typically are not eligible to be repriced.
As such, we incur interest rate risks within our Auto Finance segment because funding under our structured financing facilities is priced at a spread over a floating rate benchmark.
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Impact on Pre-Tax earnings if Interest Rates:
−Removed: As of March 31, 2022
+Added: As of June 30, 2022
Increase 100 Basis Points
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In addition, we believe this risk is mitigated by our deep experience in customer service and collections from over 25 years of operations.
−Removed: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of March 31, 2022, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in credit loss rates by 10% for the next 12 months. 
+Added: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of June 30, 2022, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in credit loss rates by 10% for the next 12 months. 
The sensitivity does not factor in other associative impacts that could occur in such a scenario. 
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Impact if Credit Loss Rates:
−Removed: As of March 31, 2022
+Added: As of June 30, 2022
Increase 10 Percent
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The discount rates for our Loans, interest and fees receivable, at fair value may change due to changes in expected loan performance or changes in the expected returns of similar financial instruments available in the market. 
−Removed: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of March 31, 2022, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in required market rates of return by 10%. 
+Added: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of June 30, 2022, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in required market rates of return by 10%. 
The fair value and earnings sensitivities are applied only to financial assets that existed at the balance sheet date, which included all of our loans, interest and fees receivable, at fair value and our loans, interest and fees receivable, gross. 
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Impact if Discount Rates:
−Removed: As of March 31, 2022
+Added: As of June 30, 2022
Increase 10 Percent
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We may also take active and passive account actions including limiting purchases, assessments of additional fees or increases in interest rates if results indicate a possible exposure.
−Removed: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of March 31, 2022, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in payment rates by 10% for the next 12 months. 
+Added: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of June 30, 2022, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in payment rates by 10% for the next 12 months. 
The sensitivity does not factor in other associative impacts that could occur in such a scenario. 
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Impact if Payment Rates:
−Removed: As of March 31, 2022
+Added: As of June 30, 2022
Increase 10 Percent
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We seek to mitigate this risk by ensuring that we have sufficient borrowing capacity with a variety of well-established counterparties to meet our funding needs.
−Removed: As of March 31, 2022, we had total borrowings associated with our loans, interest and fees receivable, at fair value and our loans, interest and fees receivable, gross of $1.3 billion.
+Added: As of June 30, 2022, we had total borrowings associated with our loans, interest and fees receivable, at fair value and our loans, interest and fees receivable, gross of $1.4 billion.
Refer to Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations –
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.