Consumer finance new business grows by 6% in February 2020

14 April 2020

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in February 2020 by 6% compared with the same month in 2019.

Credit card and personal loan new business together grew in February 2020 by 9% compared with the same month in 2019, while retail store and online credit new business increased by 2% over the same period.

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

“The consumer finance market represented by FLA members made a modest start to 2020, but faces serve disruption to new business over the coming months.  The economic impact of the coronavirus is expected to lead to a contraction in consumer spending in the second quarter of this year greater than in any quarter during the financial crisis. 

“In recent weeks consumer finance providers have seen a huge rise in requests for forbearance. The FLA is calling for urgent action by the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can continue to provide new lending and meet the huge demand for forbearance.”

Table 1: New consumer credit lending

 

Feb 2020

% change on prev. year

3 months to Feb 2020

% change on prev. year

12 months to Feb2020

% change on prev. year

Total FLA consumer finance (£m)

7,628

6

25,022

7

105,457

2

Data extracts:

 

 

 

 

 

 

Retail store and online credit (£m)

618

2

2,290

8

8,915

3

Credit cards & personal loans (£m)

4,077

9

13,627

9

52,985

1

Second charge mortgages (£m)

107

9

305

16

1,278

18

Car finance (£m)

2,514

2

7,893

4

38,024

2

 

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 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019.
  3. Consumer motor 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.

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