Advanced Search
MyIDEAS: Login to save this paper or follow this series

The link between mobile telephony arrears and credit arrears

Contents:

Author Info

  • Helga De Doncker

    ()
    (National Bank of Belgium, Microeconomic Information Department)

Registered author(s):

    Abstract

    At the request of the Minister for Climate and Energy, Paul Magnette, who is also responsible for Consumer Affairs, the NBB's Microeconomic Analysis Service conducted an investigation into the link between payment arrears for mobile telephony and arrears on loan repayments. In this inquiry, which was carried out using data drawn from the Preventel records and from the Central Individual Credit Register, the profile of people with arrears for both types of debt was also analysed. The profile analysis shows that defaulters with a Preventel registration form a specific group among CICR defaulters. People with payment arrears for both types of debt tend to have a demographic and credit profile which to a large extent matches that of CICR defaulters with no mobile phone payment arrears, but a few differences were also found between both groups of defaulters. A number of trends in borrowing and repayment behaviour turn out to be much more pronounced in the first of these two defaulter groups, but it is above all in regard to the age aspect that the differences are most striking. In cases where people have fallen behind in their payments for both types of debt, it actually turns out to be a younger group. Generally speaking, these borrowers take out their first loan at an earlier age, and they also tend to run up their first arrears when they are younger. The inquiry further revealed that there is a statistically significant link between payment arrears for mobile telephony and credit arrears, and this applies for various definitions of payment arrears. Repayment problems generally tend to emerge sooner in payment arrears for mobile telephony bills than in arrears on loans. A simple logistic regression model indicates that dummy variables for a Preventel registration, and for the duration of that registration, still have a definite predictive value with regard to credit arrears, after controlling for a number of demographic and credit variables in the model. As the assessment of the credit risk of private individuals is based on a set of socio-economic variables, payment arrears for mobile telephony could therefore be a useful complementary variable in that assessment.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.nbb.be/doc/oc/repec/docwpp/wp212En.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by National Bank of Belgium in its series Working Paper Document with number 212.

    as in new window
    Length: 62 pages
    Date of creation: Feb 2011
    Date of revision:
    Handle: RePEc:nbb:docwpp:201103-03

    Contact details of provider:
    Postal: Boulevard de Berlaimont 14, B-1000 Bruxelles
    Phone: (+ 32) (0) 2 221 25 34
    Fax: (+ 32) (0) 2 221 31 62
    Email:
    Web page: http://www.nbb.be/
    More information through EDIRC

    Related research

    Keywords: consumer credit bureau; credits; mobile telephony; payment arrears;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbb:docwpp:201103-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.