National Credit Default Rates Flat Despite Jump in Bank Card Defaults in March 2015 According to the S&P/Experian Consumer Credit Default Indices

New York, April 21, 2015 – Data through March 2015, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, continued to show a slight downward trend. The bank card default rate increased 15 basis points to 2.99% following an increase of 23 basis points in February, the largest two month increase since April 2010. The composite index posted 1.05% in March, the first decline since July 2014. The auto loan default rate reported a decrease of three basis points to 1.03%, back to its January 2015 level. The first mortgage default rate decreased for a second month, down eight basis points to 0.92%. The second mortgage default rate decreased by 16 basis points to 0.50%.

The five major cities reported mixed results in March with two cities showing lower default rates. Chicago reported a default rate of 1.15%, a decrease of three basis points. Dallas reported a decrease, for the first time since September 2014, of 12 basis points at 1.05%. Miami reported 1.39% for March, bouncing back 22 basis points from February’s 1.17%. New York posted its fourth consecutive increase with a reported rate of 1.20%, up six basis points. Los Angeles also saw its default rate increase, up six basis points, to 0.89%.

“The increase in the bank card default rate over the last two months is the largest such jump in five years,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “While bank card defaults spiked, default rates for first mortgages and autos were down in March and have shown no large increase since 2012. The New York Fed’s Survey of Consumer Expectations Credit Access Survey released in February shows consumers applying for, or expecting to apply for, increased credit limits on bank cards combined with a decline in the rejection rate on such requests. The more generous credit limits may be one source of the rise in defaults. The pattern in auto loans is the reverse: there are reports of some lenders scaling back auto loans and there is no significant shift in default rates.

“Looking at the five cities tracked for the release, the only large move was an increase in Miami which largely reversed the previous month’s decline. Across the country, the use of consumer and mortgage loan continued to expand. The mix of recent economic data suggests the economy is growing, but more slowly than at the end of 2014. Moreover, the signs of moderation – retail sales and March’s slower increase in payrolls – suggest that the Fed isn’t likely to raise interest rates until later in 2015 or 2016. This means that stable borrowing costs may lead to further expansion in consumer credit.”

The table below summarizes the March 2015 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs:

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About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2014, we were named by Forbes magazine as one of the “World’s Most Innovative Companies.”

We employ approximately 16,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2014, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, “Inside Experian.”

For more information:
Dave Guarino
Communications
S&P Dow Jones Indices
dave.guarino@spdji.com
(+1) 212-438-1471

David Blitzer
Managing Director and Chairman of the Index Committee
S&P Dow Jones Indices
david.blitzer@spdji.com
(+1) 212-438-3907

Jordan Takeyama
Experian Public Relations
jordan.takeyama@experian.com
(+1) 714-830-7561

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 am ET. They are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian's consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

For more information, please visit: www.consumercreditindices.standardandpoors.com.

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