WASHINGTON, D.C. — Stalled job growth during the third quarter of last year stifled consumer credit delinquency rate improvement that came in previous quarters, progress that included auto loans.

According to American Bankers Association's Consumer Credit Delinquency Bulletin, direct auto loan delinquencies rose from 1.67 percent to 1.74 percent in the third quarter. The ABA classifies direct auto loans as contracts originating by banks.

Indirect auto loans — one the association says are orchestrated by dealers — also ticked higher. The bulletin indicated indirect auto loan delinquencies edged up from 3.01 percent to 3.02 percent.

However, a pair other loan categories that often involve dealers moved lower during the third quarter. ABA determined marine loan delinquencies fell from 2.20 percent to 2.04 percent, while RV loan delinquencies slipped to 1.53 percent from 1.63 percent.

Overall, the ABA's bulletin showed the composite ratio — which tracks delinquencies in eight closed-end installment loan categories — was virtually flat, rising just one basis point from the second quarter to 3.01 percent of all accounts in the third quarter.

The ABA report defines a delinquency as a late payment that is 30 days or more overdue. All figures are seasonally adjusted based upon the number of accounts.

In other elements of consumer credit, the association determined bank card delinquencies were stable after dropping significantly over the last year. This segment climbed just two basis points to 3.64 percent of all accounts, which remains well below the 15-year average of 3.92 percent. 

Taking a look at the real estate market, ABA discovered property improvement loan delinquencies fell from 1.35 percent to 1.23 percent, while home equity lines of credit delinquencies edged lower from 1.81 percent to 1.74 percent. Mobile home loan delinquencies remained steady at 4.01 percent, but home equity loan delinquencies jumped from 3.97 percent to 4.05 percent.

ABA chief economist James Chessen said he wasn't surprised that delinquency rate improvements slowed as the job market stumbled in the third quarter. Chessen noted public sector layoffs (463,000) overwhelmed private sector job gains (372,000).

"The economy just skipped a beat in the third quarter," Chessen surmised. "It doesn't move in a straight line, and neither do consumer credit delinquencies.

"I think we'll see momentum return and delinquencies improve over the next six months," Chessen speculated. "There's less uncertainty about the economy now, and consumers and businesses feel more confident. Improvements hinge on a consistent increase in new jobs. We are also encouraged by lower consumer debt levels and higher personal savings rates. This will help rebuild a sense of financial stability."