TORONTO, June 3 /CNW/ - 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
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
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
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.
For further information:
For further information: Craig Hillyer, AVP, Product Management &
Innovation, at (416) 227-5290 or visit our website at www.equifax.ca