Auto Loan Delinquencies Are On The Rise

The state of the American economy is healthy, according to economic and financial experts. The fundamentals remain strong: low unemployment rate (4.1%), robust growth rate not seen since the Great Recession and record-breaking stock market performance.

However, if one were to look closely at some specific economic indicators such as household debt, some worrying trends begin to emerge. The rise in car loan delinquencies, for example, especially amongst subprime borrowers (620 credit score or below), is beginning to show signs of the proverbial canary in a coal mine.

Auto finance companies and banks are experiencing a rise in subprime and even above prime delinquencies. Non-bank finance companies are especially affected because they hold roughly 75% of the $282 billion in subprime auto loans. Banks and other lenders hold the rest.

The trend in delinquent car loan payments has been steadily climbing for the past two years and are now closing in on the 2008 financial crash levels. A significant chunk of these delinquencies seriously delinquent (90+ days late in payments).

These rising delinquencies are causing lenders to enhance their due diligence process on the front end and look for ways to reduce collections and recovery costs to protect their bottom lines. Alternative credit data is gaining popularity and in many cases being deemed as or more influential than traditional credit reports. BankruptcyWatch is ideally situated to help lenders in every facet of their lending process.

BankruptcyWatch provides a comprehensive bankruptcy solution to help lenders score recent filers and give them exactly what they need to make fast and accurate credit and collections decisions. Utilizing our full tool set, organizations are completely automating their bankruptcy departments and decisioning elements.

BankruptcyWatch’s patent pending technology gives lenders instant access to bankruptcy data and unlocks the information inside the filed documents. This data includes the ability to calculate a debtor’s debt-to-income ratio as well as knowing what they intend to do with all of their assets and so much more. BankruptcyWatch obtains real-time data from the court system that is far more reliable and accurate than any other available method and is customized based on each lender’s specific requirements.

To learn more about how BankruptcyWatch can help your company or organization, email or call us at (888) 895-1328.


    Blogger Comment