Equifax Canada is raising the red alert on the sad state of Canadian credit consumers. The company says it is alarmed at the rising number of Canucks falling behind on their payments. (Sun Media file photo)

CALGARY - The number of Canadians falling behind on their credit payments is increasing at an "alarming" rate, says a survey by market research firm Equifax Canada.

And nowhere are delinquencies increasing at a faster pace than in Calgary.

Data released yesterday shows that in May, the payment delinquency rate has risen by 29% over last year in Calgary, compared to a national increase of 19%.

This means that 1.32% of Calgarians are more than 90 days behind on payments on credit cards, loans or lines of credit.

Nationally, more than half a million people are behind in their payments, pushing the delinquency rate to 1.52%.

Although the absolute numbers may appear small, it's the rapid rate of increase that's worrisome, said Equifax executive Nadim Abdo.

"The alarming point is that every month seems to go through without seeing things improving," he said, noting that the rate at which Canadians are falling behind in their payments is unprecedented.

Moreover, over the past year the geographic centre of the most rapid increases has shifted from Ontario to Alberta and B.C.

Both provinces are heavily reliant on natural resources and have been hit hard by the dramatic collapse in commodity prices.

Delinquency rates have risen 26% in Alberta and 27% in B.C.

Abdo said that although his survey doesn't correlate economic data, such as unemployment, with payment data, he said "certainly the recession has something to do with it."

The survey shows that credit cards and sales-finance purchases have seen the sharpest increase in delinquencies, rising 38% and 58%, respectively.

"My concern is that if people miss those payments, it would negatively impact their credit rating," Abdo said.

Equifax issued its report the same week a Senate committee urged the government to more tightly regulate the credit and debit card industries.

The report said the government has so far failed to rein in rising interest rates and fees for such cards, and urged the government to appoint a board to oversee that industry.

Abdo said he can't comment on the impact more tightly regulated interest rates would have on payment tardiness.

MARKUS.ERMISCH@SUNMEDIA.CA