Consumer Credit Delinquencies Soar

Consumer loan delinquency rates, including those for home equity lines and loans, increased sharply in the fourth quarter of last year, according to the American Bankers Association. The delinquency rate on closed-end home equity loans rose 11 basis points from the level recorded in the third quarter to 2.39%, according to the ABA. The delinquency rate on home equity lines of credit rose 12 bps to 0.96%, the ABA reported. All eight consumer loan types saw an increase in overdue rates, with the largest increase being posted by indirect auto loans. The ABA's composite consumer loan delinquency rate rose to its highest level since 1992. "The rise in consumer credit delinquencies is consistent with a rapidly slowing economy," chief economist James Chessen said. "Stress in the housing market still dominates the story, but it's a broader tale of an overall weak economy." The ABA can be found on the Web at http://www.aba.com.