The number subprime loans that were made last year fell by 7.8 percent, but the total amount of the loans grew 2 percent to $576 million.
The Colorado Attorney General’s office reports that defaults fell from 10.2 percent in 2008 to 8.8 percent in 2009. The total amount of uncollectible payday loans also declined from $24.7 million in 2008 to $19.5 million in 2009.
Thirty-four percent of all loans were eligible for a payment plans, and seven percent of all payday loans made in 2009 were converted to payment plans.
Small installment loans – of $1,000 or less – lent $10 million to consumers in 2009, a 37 percent decrease in loan volume and a 39 percent decrease in the number of consumers receiving loans, according to the report.
Fewer companies were providing the loans, as well. Only five companies with 56 locations made small installment loans in 2009, a 44 percent decrease from 2008.
Supervised lending also fell in 2009. Supervised lending are loans made by finance companies, insurance premium finance companies and mortgage lenders that make junior-lien loans. Supervised loans also include car loans, student loans and those for household goods.
The number of licensed lenders fell 15 percent last year to 557 licenses. Loan volume fell by 13 percent in most categories.
The exception: auto loans were up 62.09 percent form 2008 to 2009. Licensed lenders continued to service and collect more than $1.37 billion in consumer loans, $1.55 billion in credit sales and $60.3 million in leases.
Delinquencies were up in this category by 16 percent and defaults increased by 40 percent.
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