Billing dissatisfaction sometimes or very often leads 22% of auto loan borrowers to delay payment.

PYMNTS Intelligence estimates that $12.3 billion in monthly auto loan payments are exposed to those delays.

Auto lenders score better at executing payments than at providing payment options or resolving billing issues.

Auto lenders are entering a period in which collections performance will depend on more than identifying borrowers who are falling behind. They also must account for what happens between the monthly statement and the receipt of payment.

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The Federal Reserve Bank of New York’s “Quarterly Report on Household Debt and Credit,” released in August, put outstanding auto debt at $1.71 trillion in the second quarter, with transitions into early delinquency ticking higher. Meanwhile, the PYMNTS Intelligence report “The Service Commerce Performance Gap” found a separate source of payment delay inside the servicing process, as 22% of auto loan borrowers surveyed said billing dissatisfaction sometimes or very often leads them to postpone payment.

The friction translates into an estimated $12.3 billion in monthly auto loan payments exposed to delay, giving lenders a reason to examine billing and servicing alongside the credit indicators they already use to manage repayment risk.

The estimate is based on an average monthly auto loan payment of $650 and an estimated population of 86 million borrowers. Applying the 22% survey rate produces roughly 19 million borrowers whose payments can be affected by dissatisfaction.

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