Overall consumer delinquencies show improvement

ABA’s Consumer Credit Delinquency Bulletin for the quarter found that late credit card payments increased to 4.4 percent, up from 4.27 percent for the same quarter a year ago.

The composite ratio, however, decreased from 2.02 percent at the end of 2005 to 1.94 percent for the first quarter. The composite ratio tracks late payments in eight types of closed-end accounts.

The bulletin is a quarterly survey of more than 300 banks nationwide reporting on the percentage of consumer loans that are 30 days or more past due.

“Overall, the financial picture is good, which is reflected in improved delinquencies in most consumer loan categories,” said James Chessen, ABA’s chief economist, in a news release.

“Credit card loan payments are sensitive to financial pressures. As gas prices eased at the end of 2005, so did credit card late payments.”

He added that the positive effect of easing gas prices evaporated in the first quarter, and that, combined with increasing interest rates and higher energy prices, is “taking a bite out of disposable income.”

Among the bulletin’s findings:

· Personal loan delinquencies dipped to 1.81 percent from 1.97 percent.

· Direct auto loan delinquencies rose to 1.78 percent from 1.72 percent

· Indirect auto loan delinquencies fell to 2.04 percent from 2.13 percent.

· Recreational vehicle loan delinquencies dropped to 0.78 percent from 0.90 percent.

· Home equity loan delinquencies fell to 1.94 from 2.07 percent.

· Property improvement loan delinquencies increased to 1.42 percent from 1.36 percent.