IDFPR Releases Annual Consumer Loan Trends Report (Springfield, Illinois) – The Illinois Department of Financial and Professional Regulation, the Financial Institutions Division on Thursday announced the release of its annual report on consumer lending trends. The report informs the Department of consumer loan market trends, including the number of loans granted, type of loans, amount of loans, income of those taking them, and the number of loans in default. This year’s report shows a decrease of over 40% in reported loans in 2020 compared to 2019.
“The report reflects the significant impact of the COVID-19 pandemic on consumer lending in 2020. Compared to previous years, there have been substantial decreases in the number of borrowers, the number of loans issued and the number of loans issued. total amounts issued for all types of loans reported, “said Francisco Menchaca, director of the financial institutions division.
The types of loans assessed and explained in the report are payday loans, installment payday loans, title secured loans, and small consumer loans. Here are some of the key findings from the trends report:
- A total of 279,552 unique borrowers obtained a consumer loan reported by Veritec in 2020.
- The transaction volume decreased by 40.3% between 2019 and 2020. The decrease in volume was evident for all types of loans reported.
- In 2020, transaction volume for:
- Installment payday loans were 44.3% lower than in 2019.
- Payday loans was 43.8% lower than 2019.
- Loans guaranteed by title were 40.4% lower than in 2019.
- Small consumer loans were 36.3% lower in 2019.
- Between 2012 and 2020, the average amount of payday, installment, small consumption and title loans was $ 342.64, $ 697.79, $ 1,021.52 and $ 1,145.60, respectively.
- The average gross monthly income of Illinois consumers using these loan products during the 2012-2020 baseline period was $ 2,795.15, or about $ 33,542 per year, an increase of about $ 300 per year compared to last year’s average.
- During the period between 2012 and 2020, the average APRs for payday loans, installment loans and title loans were 297%, 228% and 178%, respectively.
- During the period from 2012 to 2020, the average total fees for payday, installment and securities loans were $ 52.47, $ 711.84 and $ 3,342.40, respectively.
- Between 2012 and 2020, the average loan durations (in days) for payday loans, installment loans, small consumers and title loans were 18.8, 163.3, 341.1 and 598, respectively, 7.
- In 2020, the default rates for breakdown assistance, installment payment and small consumers were at least 5.4%, 10% and 1.6% respectively.
IDFPR Releases Annual Consumer Loan Trends Report