Canadians increasingly falling behind on their credit payments

TORONTO – Equifax Canada today released the latest consumer credit delinquency data which shows that Canadians continue to fall behind on their credit payments at an increasing rate. The average delinquency rate for Canada rose by 13% over a one-year span from April 30, 2008 to April 30, 2009. In March 2009, the annual increase in delinquency rates was approximately 9%. The average delinquency rate for all of Canada as of April 30, 2009 was 1.48%.

Equifax Canada defines delinquent accounts as credit facilities that are 90 days or more past due. The average delinquency rate is calculated by comparing the number of delinquent credit facilities to the total number of credit facilities. Equifax Canada’s experienced team of consultants and analysts compute delinquency rates by analyzing data from Canadian lenders who report to it on a daily basis.

Provincially, Nova Scotia had the highest average delinquency rate in April at 2.03% and Saskatchewan had the lowest rate at 1.19%. Ontario’s rate was 1.69% for April.

Delinquency Rising Fast in the West

On a yearly basis, the average delinquency rates have been rising the most in British Columbia, Alberta (both 17% increases) and Quebec (15% increase). The national yearly average rate of increase is 13%.

It is important to note that these provinces continue to have average delinquency rates that are lower than the national average with British Columbia at 1.26%, Alberta at 1.37% and Quebec at 1.22%.

Saskatchewan is the only province that has seen delinquency rates decrease on an annual basis from 1.21% in April 2008 to 1.19% in April 2009.

Cities see sharp jump in delinquency rates

Urban areas experienced some of the largest jumps in delinquency rates. Seven out of the ten cities monitored by Equifax Canada have annual increases in delinquency rates that are higher than the national average:

                                      April 2009         Year over Year

Delinquency Rate       Increase (%)
     —————-       ————
        Calgary                  1.26%                 20%
        Montreal                1.40%                 17%
        Vancouver              1.15%                 16%
        Quebec City           0.83%                 15%
        Edmonton              1.36%                 15%
        London                  1.61%                 14%
        Hamilton                1.64%                 13%
    ———————————————————
        Canada                   1.48%                 13%
    ———————————————————
       

It is important to note that all provinces and cities monitored by Equifax Canada experienced an increase in their average delinquency rate from March 2009 to April 2009.

Toronto continues to have the highest delinquency rate at 1.92%, even though its yearly increase rate is 8%, which is below the national average.

"With the release of April’s delinquency data, it is apparent that Canadian’s risk profile differs greatly from region to region," says Carol Gray, President, Equifax Canada. "In light of these significant findings, we are launching a new risk score that will provide better insight for our clients’ portfolios."

There are several challenges to credit lending for which improved solutions are necessary. The most prominent of these are the changing economy, and regional differences in risk profile as demonstrated by the different delinquency rates. Credit grantors are looking for increasing levels of service and support for their credit scoring solutions, especially as consumers become more aware of, and regulators continue to focus on, the credit industry.

This is another in a series of news releases that will feature Equifax Canada’s financial and demographic data, which can help businesses target opportunities and make informed decisions. If you would like to find out how Equifax Canada can use their unique insights to help you make better decisions for your business, please contact us at 1-800-278-0278 or visit our website at www.equifax.ca.
About Equifax Inc. (www.equifax.com)
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.

Customers have trusted Equifax for over 100 years to deliver innovative solutions with the highest integrity and reliability. Businesses – large and small – rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. We empower individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.

Headquartered in Atlanta, Georgia, Equifax Inc. operates throughout the U.S., Canada and 13 other countries in North America, Latin America, and Europe. Equifax is a member of Standard & Poor’s (S&P) 500 Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.