LATE PAYMENTS RISE ON SOME CONSUMER LOANS

April 4, 2007

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By JEANNINE AVERSA
THE ASSOCIATED PRESS

WASHINGTON – Late payments on certain auto and home equity loans climbed in the final quarter of last year, while delinquencies on credit card bills largely held steady, suggesting some consumers are feeling more squeezed than others.

The American Bankers Association, in its quarterly survey of consumer loans, reported yesterday that late payments on home equity loans rose to 1.92 percent in the October-December period. That was up sharply from 1.79 percent in the prior quarter and the highest since the first quarter of 2006.

“It’s not a surprise to see some increase in home equity loan delinquencies, given the weaknesses in the housing market,” said James Chessen, the association’s chief economist.

Payments are considered delinquent if they are 30 or more days past due. The survey is based on information supplied by more than 300 banks nationwide.

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Late Payments Rise On Some Consumer Loans