A survey released by the American Bankers Association found consumer delinquencies rising across all types of consumer loans in the 4th Quarter of 2008. The composite ratio, which tracks eight closed-end installment loan categories, rose 32 basis points to a record 3.22 percent of accounts (seasonally adjusted).
Here are the increases in delinquencies by category:
* Home equity loan from 2.63 to 3.03 %.
* Property improvement from 1.63 to 1.75 %.
* Indirect auto loan from 3.25 to 3.53 %.
* Direct auto loan from 1.71 to 2.03 %.
* Marine loan from 1.82 to 2.35 %
* RV loan from 1.27 to 1.38 %.
* Personal loan from 2.69 to 2.88 %.
The only category which saw a decrease was Mobile home delinquencies which fell from 3.08 to 2.96 %. Credit card delinquencies also increased from 4.20 percent to 4.52 percent but still remain near the four year average of 4.47 percent.
The full press release can be viewed here: http://www.aba.com/Press+Room/040209DelinquencyBulletin.htm
Lee M. Herman, Esquire is a Creditors Rights attorney with offices in Pennsylvania and New Jersey. For thirty years, he has successfully represented lenders, borrowers, landlords and tenants in commercial and collection disputes, as well as many local businesses and professional practices in general corporate matters. He can be reached at (610) 891-6500 or by Email to lherman@lmhlaw.com. His website is lmhlaw.com
I look at the date this was posted, and realize that this is a pretty prophetic article. The trend has continued, and much, much more!