In recent years, consumer credit loans have increased rapidly. Accompanied with this growth, the profits and losses of consumer credit loans have great effects on the revenue of a financial institution. In 2004, one of the biggest enterprises in South Korea, LG group, verged on bankruptcy in the credit card debt crisis because of the huge loss of LG bank on consumer credit loans. Similar credit card debt crises also occurred in Hong Kong and Taiwan which cause dramatic loss and lead to the deflation of consumer loan markets. Recently, US sub-prime mortgage debacle is getting more and more sever.

The announcement of US Department of Treasury that Federal Housing Finance Agency (FHFA) takes over Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) shows the economic impacts caused by the turmoil of consumer financial market are so critical that governments are now urged to take measures to combat the spread of financial collapse. As for financial institutions, although credit risk is risen by the violent turbulence of consumer financial market, it is impossible to terminate all risky consumer credit loans instantly because of the global economic recession has already reduced their profits substantially.