WASHINGTON, D.C. — The American Bankers Association's latest Consumer Credit Delinquency Bulletin showed auto loan delinquencies were on the rise during the second quarter as were most loan and credit segments.

The association discovered that quarter-over-quarter direct auto loan delinquencies rose from 1.20 percent to 1.23 percent, while indirect auto loan delinquencies climbed from 2.72 percent to 2.89 percent.

ABA defines indirect auto loans as contracts arranged through a third party such as a dealer, while direct loans come directly through a commercial bank.

While vehicles loan delinquencies might be climbing, the association's data indicated the levels are still improved from a year earlier.

Direct auto loan delinquencies stood at 1.67 percent and indirect auto loan delinquencies came in at 3.01 percent at the close of last year's second quarter.

Vehicle loans were just part of the consumer delinquencies that continued to move higher in this year's second quarter. ABA determined nine of 11 loan categories demonstrated slightly higher delinquencies amid weak job creation and a slowing economy.

The other categories most often connected with dealers ticked higher year-over-year, too. RV loan delinquencies climbed from 1.26 percent to 1.42 percent, while marine loan delinquencies moved up from 1.76 percent to 1.83 percent.

The other increased delinquencies include:

—Personal loan delinquencies rose from 3.05 percent to 3.12 percent.
—Property improvement loan delinquencies rose from 1.02 percent to 1.07 percent.
—Home equity loan delinquencies rose from 4.12 percent to 4.38 percent.
—Home equity lines of credit delinquencies rose from 1.80 percent to 1.91 percent.
—Non-card revolving loan delinquencies rose from 0.96 percent to 1.11 percent.

One of the segments that actually made a downward push was mobile home loan delinquencies, which fell from 3.74 percent to 3.62 percent.

Association officials added bank cards were a bright spot with delinquencies falling 18 basis points to 3.22 percent of all accounts. They believe that level is a strong showing because it's well below the 15-year average (3.94 percent) and below where bank cards stood one year ago at 3.62 percent of all accounts. 

ABA went on to note the composite ratio, which tracks delinquencies in eight closed-end installment loan categories, increased 17 basis points to 2.88 percent of all accounts in the second quarter. That compares to 3.00 percent in the second quarter of last year.

The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

ABA chief economist James Chessen said the small increase in delinquencies reflects continuing pressures as consumers navigate the consequences of high unemployment, rising gas prices and a struggling economy.

"Lackluster job creation, private sector uncertainty and public sector job cuts have stalled momentum and increased pressure on consumers as the economy struggles to find a way forward," Chessen explained.

"A significant increase in gasoline and food prices since the beginning of the year has further stretched family budgets, squeezing consumers and making it difficult for some people to make loan payments," he continued.

In addition, Chessen pointed out delinquency rates on home equity lines of credit rose 11 basis points and home equity loans rose 26 basis points compared to the previous quarter, reflecting continued weakness in the housing market.

"There will be continued challenges for housing, which has been a persistent drag on economic growth," Chessen acknowledged. "Real estate prices continue to fall, and home loans face increased pressure as unemployment continues to take its toll on borrowers." 

Looking toward the third quarter, Chessen expects delinquencies to stay near current levels. 

"It's hard to envision significant improvements in delinquency rates this year given the sluggish economy and falling consumer sentiment," Chessen projected.

"On the positive side, bank card delinquencies have shown encouraging trends as consumers work to reduce their debt obligations and build a better financial base," he concluded.