Finance & Leasing Association8 September 2022
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 11% in July 2022 compared with the same month in 2021. In the first seven months of 2022, new business was 22% higher than in the same period in 2021.
The credit card and personal loan sectors together reported new business up by 16% in July compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 7% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer finance market has seen a strong recovery so far this year as the UK economy emerged from the pandemic, but the overall value of outstanding consumer credit contracts at the end of July remained 9% lower than in February 2020.
With household incomes under increasing pressure from the challenges of a high inflationary environment, the consumer finance market is in a strong position to meet demand for credit over the coming months, while providing targeted support to those customers who may need it.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
Table 1: New consumer credit lending
|
|
Jul 2022 |
% change on prev. year |
3 months to Jul 2022 |
% change on prev. year |
12 months to Jul 2022 |
% change on prev. year |
| Total FLA consumer finance (£m) |
9,552 |
11 |
29,749 |
12 |
113,207 |
19 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
757 |
7 |
2,353 |
7 |
9,592 |
5 |
| Credit cards & personal loans (£m) |
4,954 |
16 |
15,402 |
22 |
57,684 |
29 |
| Second charge mortgages (£m) |
146 |
45 |
410 |
42 |
1,406 |
55 |
| Car finance (£m) |
3,314 |
5 |
10,447 |
1 |
40,360 |
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 motor finance reported in these figures refers to finance obtained through the point of sale.
- FLA policy priorities for 2022 and beyond may be found here.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
