After two consecutive quarters of declines, consumer credit delinquencies rose in the fourth quarter of 2020 as the toll of the pandemic-induced recession weighed on the economy, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. Overall, delinquencies rose in each of the 11 loan categories tracked by ABA.
The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, rose 55 basis points in the fourth quarter to 2.39% of all accounts. (See Historical Data). The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
To read the full ABA report, click here.