ATLANTA — While analysts found the number of consumers
considered to be subprime borrowers is actually decreasing in some of the
nation's largest cities, Equifax's latest National Consumer Credit Trends
Report showed the amount of auto loan debt rose to the highest point in four
years as lending to those subprime customers jumped by double digits.

As of the end of January, Equifax indicated the balances on
outstanding auto loans totaled $782 billion, the highest level since January
2009 for a 48-month high. The total number of existing loans stands at 59
million, the highest level since July 2009 for a 42-month high. 

By source, analysts mentioned loans funded through financial
institutions such as banks, savings and loans or credit unions, are at more
than $372 billion, realizing a 60-month high and back to pre-recession levels.

Similarly, at more than $409 billion, balances on loans funded
by auto finance companies are at its highest level in 46 months.

Equifax highlighted delinquency rates within the auto
portfolio are also improving, and by year-end 2012 decreased by nearly 11 percent
from same time a year ago. Meanwhile auto loan and lease losses in that same
period dropped nearly 10 percent.

"Sales of new cars and light trucks are rising steadily,
though they are still well below pre-recession levels of roughly 17 million
units," said Equifax chief economist Amy Crews Cutts. "Yet auto lending,
including leases, is now back to pre-recession levels, driven in part by the
very attractive interest rates being offered on these loans and a gradual
increase in willingness to lend to less-than-perfect credit borrowers."

Other highlights from the most recent data include:

—The most recent data shows that auto loans originated
between January and November of last year 2012 totaled $387.7 billion, a
six-year high and representing nearly 46 percent of total consumer credit
originated ($825 billion) for that same time.

—The total number of new auto loans originated between
January and November was 19.9 million, an increase of more than 11 percent from
the first 11 months of 2011 and matching a six-year high.

—New auto loans funded in November by banks, savings and
loans or credit unions increased nearly 13 percent over November 2011 totals
(749,800 to 857,300).

—For the span of January through November of last year, auto
loans to subprime borrowers (origination risk scores less than 640) has
increased more than 18 percent year-over-year from 5.1 million to 6.1 million.

Number of Consumers with Equifax Credit Scores Below 620
Declines in 24 of the Top 25 Metro Areas

The number of consumers with subprime credit scores is
shrinking across the country, according to new data from Equifax.

The total number of consumers with Equifax credit scores
below 620 fell 2.1 percent, or by about 1 million consumers, in the third
quarter of 2012 versus the third quarter of 2011.

The overall share of consumers with Equifax credit scores
under 620 fell by 0.7 percent (from 25.9 percent to 25.2 percent) during that
same period.

Analysts discovered the trend is playing out to varying
degrees in different metropolitan areas with Chicago seeing the largest decline
in consumers with Equifax credit scores below 620.

In the Chicago-Gary-Kenosha metro area, 1.5 million
consumers had a credit score of 619 or below in the third quarter of 2012, a 9-percent
decline from the same quarter in 2011.

On the other end of the spectrum, Houston is the only metro
area among the top 25 that had an increase in consumers with Equifax credit
scores below 620 with a 0.6 percent increase in the number of consumers in the
lowest category when compared to the same period in 2011.

However, when accounting for population growth in Houston,
the percentage of the Houston population with subprime credit scores fell by
0.5 percent.

Equifax explained credit scores below 620 are considered
subprime for the purposes of this report. The firm pointed out a consumer with
an Equifax score below 620 likely will have a harder time securing credit from
a bank or other lender and may have to pay a higher interest rate if a loan is
secured.

"Consumer credit scores are improving in most major
metropolitan areas," said Trey Loughran, president of the personal solutions division
at Equifax. "The job market is improving and time is starting to heal the
wounds of the Great Recession."

Loughran continued that the geographic differences can be
attributed to a number of factors, including employment, population shifts and
demographic changes.

For instance in Chicago, Equifax noted the unemployment rate
declined 1.5 percentage points to 8.8 percent – the fifth best improvement in
unemployment among the largest 25 metro areas.

Also, the firm said there are significant improvements in
early housing-bust markets such as San Francisco, Sacramento, San Diego, Los
Angeles, Las Vegas, Phoenix and Miami where consumers' credit scores are
starting to recover after foreclosures.

"It is nice to see that over 1 million people across the
country have moved out of the below 620 range," Loughran said. "We are seeing a
trend of consumers being careful and disciplined about their use of existing
credit while also being cautious about using new accounts they have opened."

Equifax Expands Automotive Services Finance Team

In other news, Equifax announced the addition of three executives
to its division servicing dealers, lenders and industry service providers:

—David Foerster, general manager of automotive services
—Paul Gessler, automotive subject matter expert
—Edie Hirtenstein, senior director of product management

The company highlighted Foerster brings more than 20 years
of experience in executive level sales, operations, business development and
marketing to his new position at Equifax.

As general manager of automotive services, executives said Foerster
will collaborate with all units serving the auto industry to establish its
presence within the automotive community.

Prior to Equifax, he served as vice president of sales and
operations for Automatic Data Processing (ADP), where he increased the
company's revenue by $10 million from 2006-2011 while maintaining a client
retention rate of 98 percent.

"His comprehensive business growth initiatives led to the
integration of the companies' first sales automation tool, Salesforce.com,
improving unit sales and streamlined reporting," Equifax said.

Gessler joins Equifax as the division's subject matter
expert, leveraging more than 20 years of proven industry sales and consulting
experience. 

Formerly with CSC, a technology provider enabled business
solutions and services, Gessler spent two decades working directly with OEMs,
dealers and parts suppliers to deliver value to customers, establish deep
relationships with the largest automotive stakeholders and become knowledgeable
within every division of the automotive community.

At Equifax, the company said Gessler will oversee new business
and partnership development as well as its go-to-market implementation.

With more than two decades of product management and product
marketing experience, Hirtenstein most recently served as director of data
services and business development for instaVIN, a company providing vehicle
history reports to the automotive industry.

While at instaVIN, Hirtenstein managed the launch of its
e-commerce service, established data acquisition relationships with numerous
companies and government entities and created or assisted with development of
business proposals and managed the relationship with affiliates such as online
automotive retailers CycleTrader.com, ClassicCars.com and Copart, and
DecodeThis.  

Previously Hirtenstein worked as senior product manager for
Experian Automotive.

"As the automotive industry continues its trajectory of
sustained growth, Equifax's role as a leader in this space is critically
important," said Joy Wilder Morgan, senior vice president of Equifax financial
services group.

"We are excited about the addition of Edie, David and Paul
to our team, given their expertise in every area within the auto ecosystem,"
Wilder Morgan continued. "With their leadership, Equifax will accelerate our
ability to provide the auto community with tools, solutions, and insights
beyond the traditional credit score."

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