Spiraling credit card debts left many consumers unable to pay their bills in recent years, and in response lenders were forced to consult debt collection agencies to recoup these payments. Though a strong people search database can help these organizations locate non-payers, a new report suggests fewer consumers may be falling behind on this debt obligation than in the past.
TransUnion released a report which found that the nationwide delinquency rate on credit cards reached 0.78 percent during the fourth quarter of 2011 – well below historic norms. That was a near 5-percent drop from year-previous figures and represented the combined effort of consumer credit management and increased lending scrutiny.
"This is the net result of riskier loans having worked their way through the system, cautious risk management strategies on the part of lenders and consumers working to maintain the health and good status of their card relationships," explained Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.
At the same time, stronger lending practices are not universal. The report also noted a 14 percent annual rise in new credit card originations, and an increased number of these financial extensions went to borrowers with relatively poor credit scores.
While it may be impressive that delinquency rates fell even despite an increased number of sub-prime borrowers, the figures may suggest that, despite apparent crackdowns on poor lending practices, borrowers with poor credit histories may continue to have access to high-interest debt.
As a result, debt collection agencies may need to anticipate increased business from lenders to stay ahead of any future changes to the national credit card delinquency rate. A comprehensive people search database can help these organizations find debtors, whether they search for a phone number by address or wish to find a person by his or her phone number.
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