Late to reply here, but, yes, agree generally, though I don't think what these private credit companies are being accused of falls into that category (i.e., I think they're being accused of playing fast and loose with their due diligence, which was baked into their competitive advantage over the banks themselves. The competitive advantage being "we'll close quickly" without all the fuss a bank would require).

I've had quite a few conversations with someone who claims to be in the know about this situation (though, really, I don't think they're any more in the know than anyone!) and they swear up and down it's all a misunderstanding, which, cynic though I may be, immediately makes me think the accusations are at least somewhat true.