Press Release

Half a million Canadians are delinquent - Equifax Canada data reveals 19% jump

Toronto, July 3, 2009 -- Equifax Canada today released the latest consumer credit delinquency data which shows that Canadians continue to fall behind on their credit payments at an ever -increasing rate. The average delinquency rate for Canada rose by approximately 19% over a one-year span from May 31, 2008 to May 31, 2009. In April, the same rate was increasing at 13%. The average delinquency rate for all of Canada as of May 31, 2009 was 1.52%. This means that over a half a million Canadians are now more than 90 days behind on their credit payments.

Provincially, Nova Scotia had the highest average delinquency rate in May at 2.07% and Saskatchewan had the lowest rate at 1.22%. Ontario’s rate was 1.74%.

Equifax Canada defines delinquent accounts as credit facilities that have not received a payment for at least 90 days. 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.

Delinquencies – Their Alarming Rise
On a yearly basis, the average delinquency rates have been rising dramatically in Alberta (26%) and British Columbia (27%), and, on the east coast, Prince Edward Island experienced a 26% increase. The national yearly average rate of increase is 18.8%.

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 1.31% and Alberta at 1.42%. In Prince Edward Island (2.05%), however, average delinquency rates were higher than the national rate.

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

	May 2009 Delinquency Rate	Year over Year Increase (%
Calgary	1.32%	29%
Montreal	1.41%	18%
Vancouver	1.18%	22%
Quebec City	0.83%	17%
Edmonton	1.40%	23%
London	1.66%	20%
Hamilton	1.70%	20%
Toronto	1.98%	14%
Canada	1.52%	19%

With the exception of Quebec City, all provinces and cities monitored by Equifax Canada from April 2009 to May 2009 experienced an increase in their average delinquency rate.

Toronto continues to have the highest delinquency rate at 1.98%, even though its yearly increase rate is 14.45%, which is below the national average.

"While we have seen delinquencies increase steadily since the beginning of the year, the rate of increase in the past 3 months has been significantly higher," said Nadim Abdo, Vice President of Equifax Canada Consulting Solutions. "The sharpest increase has resulted from Credit Card and Sales Finance purchases, which have increased by 38% and 58%, respectively, since May 2008. Such transactions typically represent the purchase of durable goods, such as furniture or electronics, and consumers appear to be willing to fall behind on them first before they miss payments on their Bank Loans and Lines of Credit."

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

Contact Information: Tom Carroll; Manager, PR & Communications; 416-227-5290; MediaRelationsCanada@equifax.com