WASHINGTON, D.C. — While indirect auto loan delinquencies showed some improvement in the first quarter, direct auto loan delinquencies were another story, according to the American Bankers Association.

On the positive side, the ABA announced today that indirect delinquencies dropped slightly from 3.53 percent from the prior quarter to 3.42 percent.

However, auto loan delinquencies grew from 2.03 percent to 3.01 percent for the first quarter.

Overall, a record wave of job losses is being cited as a major factor in a record rate of consumer delinquencies in the first quarter, according to the ABA's Consumer Credit Delinquency Bulletin.  

More than 2 million Americans lost their jobs in the first three months of the year with more than 6 million jobs lost since the recession began. 

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, rose to 3.23 percent of all accounts (seasonally adjusted), compared to 3.22 percent of all accounts in the previous quarter.

The delinquent balances on those accounts also rose from 3.16 percent to 3.35 percent of total balances due (not seasonally adjusted). The ABA classifies a delinquency as a late payment 30 days or more overdue. 

James Chessen, ABA chief economist, said the figures are a natural consequence of mounting job losses in a weakening economy. 

"The number one driver of delinquencies is job loss," Chessen said. "When people lose their jobs, they can't pay their bills. Delinquencies won't improve until companies start hiring again and we see a significant economic turnaround.

He went on to add that job growth is not likely to improve in the foreseeable future. 

"However, many people are taking greater control of their finances by cutting spending, lowering debt and saving more money," Chessen highlighted.

On the other side of the coin, the economist said unemployed consumers may be using bank cards to bridge a temporary income gap, especially with less home equity to fall back on as housing prices continue to fall. 

For instance, bank card delinquencies rose 23 basis points to 4.75 percent of all accounts, compared to 4.52 percent in the previous quarter (seasonally adjusted). He noted that the record was 4.81 percent in the second quarter of 2005.

However, the balances on these delinquent accounts rose dramatically, up 108 basis points to 6.60 percent of the value of all outstanding bank card debt, marking a new record (not seasonally adjusted).

Reflecting continued weakness in the housing sector, delinquencies for the home equity category also hit record highs. For example, home equity loan delinquencies grew 49 basis points to 3.52 percent of accounts and home equity lines of credit delinquencies rose 43 basis points to 1.89 percent of accounts.

"Even if home prices stop falling later this year, unemployment will keep home equity delinquencies high for some time," Chessen said.

On a seasonally adjusted basis, ABA released the following credit statistics:

—Home equity loan delinquencies increased from 3.03 percent to 3.52 percent.

—Property improvement loan delinquencies decreased from 1.75 percent to 1.46 percent.

—Indirect auto loan delinquencies decreased from 3.53 percent to 3.42 percent.

—Direct auto loan delinquencies increased from 2.03 percent to 3.01 percent.

—Marine loan delinquencies decreased from 2.35 percent to 2.04 percent.

—RV loan delinquencies increased from 1.38 percent to 1.52 percent.

—Mobile home loan delinquencies increased from 2.96 percent to 3.70 percent.

—Personal loan delinquencies increased from 2.88 percent to 3.47 percent.