Consumer Loan Delinquencies on The Rise

Washington, DC, July 7, 2009--Consumer loan delinquencies rose to another record high in the first quarter, according to the American Bankers Association.

The group says a continued rise in unemployment has been the main culprit for the continued rise in delinquencies.

The trade association said Tuesday the composite delinquency rate among eight types of closed-end installment loans rose to 3.23 percent. That is the highest recorded since the ABA began tracking the rate in the mid 1970s and tops the previous record of 3.22 percent set in the last quarter of 2008.

Aside from rising delinquencies among close-end loans, the ABA said credit card delinquencies also moved higher in the first quarter.