ATLANTA – A new study finds that Georgia ranks in the top five states with the highest percentage of auto loan balances over 90 days.
Release:
- Georgia has the third highest percentage of auto debt balances unpaid for 90 days or more at 5.71%, 36% above the national average.
- Consumer law experts outline consumer rights during a car repossession.
A new study has revealed that Georgia has the third highest percentage of auto loan balances delinquent for 90 days or more.
Wrongful Repossession Attorneys Thompson Consumer Law Group analyzed 2022 and 2023 auto loan data from the Federal Reserve Bank of New York to see which states had the highest percentage of auto loan balances delinquent for 90 days or more. A loan becomes delinquent once a borrower misses a payment.
3. Georgia
Georgia has the third highest percentage of auto loan balances that have been unpaid for 90 days or more in Q4 2023, moving up from fourth in Q4 2022. This percentage stands at 5.71% in Q4 2023, 36% above the national average, a 0.76 percentage point increase from Q4 2022’s figure of4.96%.This is the second largest percentage point increase in America, and 93% above the national average of a 0.39 increase.
The study also found that the percentage of auto loan balances with at least 90 days of delinquency is increasing nationwide. Between Q4 2022 and Q4 2023, the percentage of auto loan balances delinquent for 90 days or more in America increased from 3.81% to 4.2%, and every state saw an increase in the percentage of delinquent auto loan balances.
Russell S. Thompson, Managing Partner at Thompson Consumer Law Group, said:
“When an auto loan has 90 days of non-payment, that is usually when lenders start to attempt to repossess a vehicle, so an increase of auto loan balances with 90 days or more of delinquency will likely mean more repossessions.
“Mississippi had the highest percentage of auto loan balances with 90 days or more of delinquency in both 2022 and 2023, whereas Utah had the lowest percentage in both 2022 and 2023.
“Auto loan delinquency is still rising across America, with every state showing some increase in delinquency in 2023, likely meaning repossessions will increase in kind.
“Higher numbers of repossessions bring the risk of higher numbers of wrongful repossessions with it. There are two main types of wrongful repossession: Breach of Peace repossessions and No Right repossessions.
“A Breach of Peace repossession happens when repossession agents employ aggressive or unlawful tactics during the repossession. Some examples of what may count for this are using physical force, intimidation, threats, or trespassing on private property. During a repossession, consumers have the right to be free from harm and coercion, and these acts violate these rights.
“A No Right repossession happens when lenders repossess a vehicle they don’t have the right to repossess. Some examples of this may be taking the wrong vehicle, taking a vehicle despite the borrower not being delinquent, or the lender lacking the proper documentation to allow a repossession.
“Repossessions can become wrongful due to many other reasons at many points during the repossession process, and the law varies from place to place. It may be prudent for a consumer to enlist legal help to give them the best chance of winning their case, as a consumer may seek financial compensation if a repossession is wrongful.”
Table showing the percentage of auto loan balances delinquent for 90 days or more in Q4 2022 and Q4 2023 for the states with the highest 2023 figures and the US overall. The table is ranked by the percentage of auto loan balances that were delinquent for 90 days or more in Q4 2023 from the highest to the lowest. The table also shows a comparison of 2023’s figures to 2022’s, and comparisons between each state and the US overall for the percentage point change in delinquent auto loan balances from 2022 to 2023.
| Rank % of auto loan balances 90+ days delinquent in Q4 2023 | State | Percent of auto debt balance 90+ days delinquent in Q4 2023 | Difference to Q4 2023 US Overall | Percent of auto debt balance 90+ days delinquent in Q4 2022 | Percentage point increase of 90+ day delinquent auto loan balances from 2022 to 2023 | Percent difference in state increase to US overall increase from 2022 to 2023 |
| 1. | Mississippi | 6.77 | +61% | 6.1 | 0.67 | +72% |
| 2. | Alabama | 6.05 | +44% | 5.58 | 0.48 | +21% |
| 3. | Georgia | 5.71 | +36% | 4.96 | 0.76 | +93% |
| 4. | Louisiana | 5.69 | +35% | 5.44 | 0.24 | -39% |
| 5. | Indiana | 5.29 | +26% | 4.72 | 0.57 | +45% |
| 6. | Hawaii | 5.24 | +25% | 2.88 | 2.36 | +502% |
| 7. | Michigan | 5.24 | +25% | 4.83 | 0.41 | +5% |
| 8. | Delaware | 5.2 | +24% | 4.48 | 0.72 | +83% |
| 9. | South Carolina | 5.2 | +24% | 4.65 | 0.55 | +39% |
| 10. | North Carolina | 5.14 | +22% | 4.54 | 0.60 | +53% |
| US Overall | 4.2 | 3.81 | 0.39 |
Table showing the comparison of rankings for the percentage of auto loan balances delinquent for 90 days or more between 2022 and 2023 for the 10 states with the highest 2023 figures and the US overall. The table is ordered by the percentage of auto loan balances that were delinquent for 90 days or more in Q4 2023 from the highest to the lowest.
| Rank % of auto loan balances 90+ days delinquent in Q4 2023 | State | Percent of auto debt balance 90+ days delinquent in Q4 2023 | Percent of auto debt balance 90+ days delinquent in Q4 2022 | Rank % of auto loan balances 90+ days delinquent in Q4 2022 | Change in rank for % of auto loan balances 90+ days delinquent from Q4 2022 to Q4 2023 | Rank highest change in percent of 90+ day delinquent auto loan balances from 2022 to 2023 |
| 1. | Mississippi | 6.77 | 6.1 | 1 | 0 | 4 |
| 2. | Alabama | 6.05 | 5.58 | 2 | 0 | 12 |
| 3. | Georgia | 5.71 | 4.96 | 4 | +1 | 2 |
| 4. | Louisiana | 5.69 | 5.44 | 3 | -1 | 43 |
| 5. | Indiana | 5.29 | 4.72 | 7 | +2 | 6 |
| 6. | Hawaii | 5.24 | 2.88 | 31 | +25 | 1 |
| 7. | Michigan | 5.24 | 4.83 | 6 | -1 | 21 |
| 8. | Delaware | 5.2 | 4.48 | 10 | +2 | 3 |
| 9. | South Carolina | 5.2 | 4.65 | 8 | -1 | 7 |
| 10. | North Carolina | 5.14 | 4.54 | 9 | -1 | 5 |
| US Overall | 4.2 | 3.81 |