News
Consumer credit spending flat in 2011
New consumer credit spending in 2011 remained at 2010 levels, according to the latest figures from the Finance & Leasing Association (FLA).
Spending using store cards, store instalment credit, personal loans and credit cards all fell in 2011 compared with 2010, but credit provided through dealers for car purchases continued to grow.
The figures for December showed some variations, with store card lending up by 8% compared with December 2010, and second-charge mortgage lending up by 11% (despite a fall of 6% in the number of new loans). Over 2011 as a whole, second mortgages fell 3% by value and 15% by volume compared with 2010.
Fiona Hoyle, FLA Head of Consumer Finance at the Finance & Leasing Association, commented:
“Our figures show that consumers continue to take a cautious approach in uncertain economic times. This reinforces the need for the Government to make sure that any changes to regulation do not limit the supply of affordable, responsibly-provided credit. The new Financial Services Bill includes a power to transfer regulatory responsibility for credit to the new Financial Conduct Authority. We will work with the Government to ensure any new regime is appropriate for a market as diverse as consumer credit.”
Table 1: New consumer credit lending Dec 2011
Dec 11 | % change on prev. year |
Q4 2011 | % change on prev. year |
2011 | % change on prev. year | |
Total FLA consumer finance (£m) | 4,516 | 0 | 13,296 | +1 | 51,991 | 0 |
Store cards (£m) | 234 | +8 | 576 | +2 | 1,819 | -10 |
Credit cards & personal loans (£m) | 3,041 | -2 | 8,589 | -1 | 32,709 | -1 |
Store instalment credit (£m) | 256 | -7 | 682 | -11 | 2,406 | -11 |
Second mortgages (£m) | 20 | +11 | 71 | +1 | 286 | -3 |
Car finance (£m) | 891 | +6 | 3,103 | +7 | 13,608 | +4 |
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Note to editors:
In 2011 FLA members provided £72.8 billion of new finance to UK businesses and households. £52.0 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK. And £19.8 billion of it supported the purchase of new and used cars, including more than 60% of private new car registrations in 2010.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993