4 December 2014
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 7% in October compared with the same month in 2013, and by 11% in the twelve months to October 2014.
Credit cards and personal loans new business grew by 2% in October compared with October 2013. Retail store and online credit new business grew by 6% in the same period, and point-of-sale car finance by 16%.
Commenting on the figures, Fiona Hoyle, Head of Consumer Finance at the FLA, said:
“Consumer finance has played a key role in supporting economic growth, by helping households make essential purchases. Forecasts suggest this will continue in 2015, with gross consumer lending increasing by 3.3% compared with 2014.
“It has been a challenging year, as consumer finance providers got used to a new regulator and a new rulebook, but they have maintained the supply of responsibly-provided credit.”
Table 1: New consumer credit lending
|Oct 2014||% change on prev. year||3 months to Oct 2014||% change on prev. year||12 months to Oct 2014||% change on prev. year|
|Total FLA consumer finance (£m)||6,113||+7||18,822||+8||72,481||+11|
|Retail store and online credit (£m)||546||+6||1,533||+7||6,327||+9|
|Credit cards & personal loans (£m)||3,152||+2||9,334||+2||37,661||+5|
|Second mortgages (£m)||49||+11||147||+27||553||+32|
|Car finance (£m)||2,059||+16||6,817||+16||24,335||+21|
Note to editors:
- 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 instalment credit providers.
- In 2013, FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.