Consumer finance new business fell by 8% in June 2024

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in June 2024 by 8% compared with the same month in 2023.  In the first half of 2024, new business in this market held steady compared with the same period in 2023.

The credit card and personal loans sectors together reported new business 8% lower in June compared with the same month in 2023, while the retail store and online credit sector reported a fall in new business of 9% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The consumer finance market reported new business 1% lower in Q2 2024 as a whole as the impact of successive interest rate rises between 2021 and 2023 continued to weigh on demand.

“The Bank of England’s decision to cut Bank Rate in August and the return of inflation to the 2% target has improved the outlook for household spending power. Our latest research suggests that total UK new consumer credit by value is likely to grow in 2024 by 6% and by a further 5% in 2025. 

“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

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 2023, FLA members provided £151 billion of new finance to UK businesses and households. £113 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2023.
3. Consumer car finance reported in these figures refers to finance obtained through the point of sale.
4. For media enquiries, please contact the FLA press office on 020 7420 9656.