NEW YORK, Jan. 20, 2015 /PRNewswire/ -- Data through December 2014, 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 an increase in default rates. The national composite posted a default rate of 1.11% in December, up four basis points from November 2014.  The first mortgage default rate rose five basis points to 1.02% in December, its largest increase since September 2013. The second mortgage default increased by 11 basis points to 0.59%. The bank card default rate also increased from its historic low in November, up six basis points to 2.65%. Only the auto loan default rate decreased, down three basis points to 1.02%.

"December was the fifth consecutive month with increasing national consumer credit default rates," says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "Increases also occurred in some recent months in mortgages and auto loans. While the economy is strengthening and consumer spending is gaining, wages have shown little growth. The large drop in oil prices benefits consumers' disposable income and should limit consumers' financial stress. Default rates remain very low but could be a cause for concern if the rising trend gains strength.

"Chicago, Dallas, New York, and Los Angeles reported default rate increases in December. Across these cities, there is a seasonal pattern with December showing larger than typical increases in default rates, probably associated with holiday shopping and delayed payments. New York reported the largest increase, up seven basis points from last month's historic low, to 1.05%. Chicago also increased from its historical low in November, up five basis points to 1.16%, and Los Angeles increased six basis points to 0.86%. Only Miami reported a rate decrease, down 12 basis points to 1.34%. Despite the significant increases, all five cities – Chicago, Dallas, Los Angeles, Miami and New York – still remain below rates seen a year ago."

The table below summarizes the December 2014 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
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

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 31 March 2014 was US$4.8 billion. Experian employs approximately 16,000 people in 39 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.

For more information, visit http://www.experianplc.com.

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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