NEW YORK - A recent study conducted by Thompson Consumer Law Group, analyzing Federal Reserve Bank of New York data, indicates a worrying trend in auto loan payments across the United States. The study, which compared Q4 2022 to Q4 2023, reveals that Mississippi has the highest percentage of auto loan balances delinquent for 90 days or more, standing at 6.77%, which is 61% above the national average of 4.2%.
Following Mississippi, Alabama and Georgia rank second and third, respectively, with 6.05% and 5.71% of auto loan balances in at least 90 days of delinquency. These figures represent a significant increase compared to the same quarter in the previous year. Nationally, the percentage of delinquent auto loan balances increased from 3.81% to 4.2% during this period, with every state witnessing a rise in delinquency rates.
Hawaii, in particular, saw a dramatic surge, climbing from 31st place in 2022 to sixth in 2023, with delinquent auto loan balances jumping from 2.88% to 5.24%. This increase is over six times the average percentage point increase experienced across the country.
Russell S. Thompson, Managing Partner at Thompson Consumer Law Group, highlighted the implications of these rising delinquency rates, suggesting an increase in vehicle repossessions. Furthermore, he addressed the issue of wrongful repossessions, including those resulting from aggressive tactics by repossession agents or due to lenders repossessing vehicles without proper justification or documentation.
The study's findings are based on data from the Federal Reserve Bank of New York’s State Level Household Debt Statistics, which is considered accurate as of March 28, 2024. The results underscore a growing concern over car affordability and financial strain on American consumers, potentially leading to an uptick in repossessions and legal disputes related to wrongful repossession practices.
This analysis is based on a press release statement, offering a snapshot of the current state of auto loan delinquencies across the United States.
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