Finance & Leasing Association12 January 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 6% in November 2022 compared with the same month in 2021. In the eleven months to November 2022, new business was 15% higher than in the same period in 2021.
The credit card and personal loan sectors together reported a fall in new business of 9% in November compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 3% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“November saw the consumer finance market represented by FLA members report a fall in new business for the first time since February 2021. The performance across finance products was mixed, reporting either slower new business growth or lower levels of new business compared with November 2021.
“Nevertheless, consumer finance new business provided by FLA members is on track to be 10% higher in 2022 than its pre-pandemic level in 2019, and the value of consumer finance outstanding agreements at the end of 2022 is expected to be 1% higher than at the end of 2019.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
Table 1: New consumer credit lending
|
|
Nov 2022 |
% change on prev. year |
3 months to Nov 2022 |
% change on prev. year |
12 months to Nov 2022 |
% change on prev. year |
| Total FLA consumer finance (£m) |
9,275 |
-6 |
28,833 |
1 |
114,857 |
15 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
1,130 |
3 |
2,848 |
6 |
9,808 |
7 |
| Credit cards & personal loans (£m) |
4,652 |
-9 |
14,182 |
0 |
58,427 |
20 |
| Second charge mortgages (£m) |
130 |
14 |
418 |
28 |
1,558 |
45 |
| Car finance (£m) |
3,040 |
-5 |
10,347 |
1 |
40,836 |
10 |
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 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2021.
- Consumer car finance reported in these figures refers to finance obtained through the point of sale.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
