Consumer loan delinquencies continue to rise

The Associated Press

NEW YORK – A banking group says consumer loan delinquencies rose to another record high in the first quarter.

The American Bankers Association says a continued rise in unemployment has been the main culprit for the continued rise in delinquencies.

The trade association said today 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.