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In-store instalment credit increasingly popular with consumers

In-store instalment credit increasingly popular with consumers

Released on 11 July 2012

In-store instalment credit grew by 28% in May (compared with May 2011). £249 million was advanced to customers buying items such as furniture, white goods and electronics for their homes. The latest figures from the Finance & Leasing Association also show that the in-store instalment market was up by 21% in the past three months, compared with the same period the previous year.

May also saw increased lending in the second-charge mortgage and consumer car finance sectors (both of which showed double-digit growth rates). Credit cards and personal loans grew by 1% in May compared with May 2011. Store card lending fell by 16% compared with the previous year.

Fiona Hoyle, Head of Consumer Finance at the Finance & Leasing Association, commented:

“In-store instalment credit is proving increasingly popular with consumers, who are responding to the attractive and flexible offers which are available. This is helping customers buy essential household goods, at a time when many families have to manage their budgets even more carefully.” 

Table 1: New consumer credit lending May 2012

 

May 12

% change on prev. year

3 months to May 2012

% change on prev. year

12 months to May 2012

% change on prev. year

Total FLA consumer finance (£m)

4,840

+9

14,788

+9

53,773

+4

Store cards (£m)

123

-16

346

-16

1,723

-7

Credit cards & personal loans (£m)

2,859

+1

8,345

+2

33,017

+0

Store instalment credit (£m)

249

+28

702

+21

2,537

-3

Second mortgages (£m)

28

+17

79

+16

304

+8

Car finance (£m)

1,398

+24

4,916

+23

14,917

+13

 

- ends -

Note to editors:

  1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and short-term credit lenders, and instalment credit providers.
  2. In 2011 FLA members provided £72.9 billion of new finance to UK businesses and households. £52.1 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK.

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