WASHINGTON - A concerning trend in auto loan repayments is emerging across the United States, according to a new study analyzing Federal Reserve Bank of New York data. The study, conducted by Thompson Consumer Law Group, indicates a nationwide increase in auto loan balances that are more than 90 days delinquent, with Mississippi, Alabama, and Georgia leading the states with the highest delinquency rates.
The Federal Reserve Bank of New York's data reveals that in the fourth quarter of 2023, Mississippi had the highest percentage of delinquent auto loan balances at 6.77%, which is 61% above the national average of 4.2%. This represents a significant increase from the state's 6.1% delinquency rate in the same quarter of the previous year.
Alabama follows with 6.05% of its auto loan balances being more than 90 days overdue, marking a 44% increase above the national average. Georgia ranks third with a delinquency rate of 5.71%, 36% above the national average and a notable increase from 4.96% in the fourth quarter of 2022.
The study also highlighted that every state experienced a rise in the percentage of delinquent auto loan balances from the fourth quarter of 2022 to the same period in 2023. Hawaii, for instance, saw a dramatic climb in delinquency rates, moving up from 31st to the sixth position with a delinquency rate of 5.24%, which is six times the national average increase.
Managing Partner at Thompson Consumer Law Group, commented on the implications of these findings, stating that a rise in delinquency rates could lead to an increase in vehicle repossessions. He also warned of the potential for wrongful repossessions, which can occur through aggressive or unlawful tactics by repossession agents or errors made by lenders.
The study serves as a stark reminder of the financial challenges many Americans face and the potential repercussions for both consumers and lenders. It is based on data from the Federal Reserve Bank of New York's State Level Household Debt Statistics, which is considered a reliable source for such financial analyses.
This report is a synopsis of the press release statement provided by Thompson Consumer Law Group and does not include any endorsements or promotional content.
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