Consumer finance key to economic growth

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
Data extracts:            
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:

  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 instalment credit providers.
  2. 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.

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