Thursday, July 9, 2015

Consumer Delinquencies Fall Slightly in First Quarter

Delinquencies in closed-end loans and bank cards fell in the first quarter, highlighted by a significant drop in home equity loan and home equity line delinquencies, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. Delinquencies fell in five of the 11 individual loan categories while delinquencies in two categories – direct auto loans and marine loans – remained unchanged.

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell one basis point to 1.53 percent of all accounts – continuing a three-year trend of remaining well under the 15-year average of 2.28 percent. (See Historical Graphic.) The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

“It’s highly encouraging that consumers continued to improve their financial situations even during a quarter where the economy contracted,” said James Chessen, ABA’s chief economist. “This speaks to sustained consumer discipline as Americans continue to use and manage their debt responsibly.”

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