NEW YORK-A new report has concluded that the worst of the credit crunch is not yet over. The report, released by Standard & Poor's Ratings Services, suggests that the slow economic recovery-combined with new lending standards, cutbacks in consumer spending and possible changes in regulations affecting the consumer credit industry-may make the consumer debt landscape even harder to predict.
"We are just beginning to understand some of what this might mean," credit analyst John K. Bartko, who wrote the report, told American Banker, an affiliate of Credit Union Journal. "It might well mean, however, that consumers, especially subprime borrowers, may find it noticeably tougher to get some loans."
The report said borrowing costs could increase, even for customers with strong credit histories, as banks look to recover income they lose because of new credit card laws and proposed changes that restrict fees.
Lenders are looking harder for borrowers with strong credit and stable employment. In addition, rising interest rates might price some consumers out of the market for certain loans, according to the report.
