Consumer finance of continued importance to the economy

10 October 2014

Consumer finance of continued importance to the economy                          

New figures released by the Finance & Leasing Association (FLA) show 11% growth in consumer finance new business in the twelve months to August 2014.

Retail store and online credit was up 9% in August, compared with the same month last year, and second charge mortgage new business grew 31% by value and 3% by volume in the same period.

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

“The growth of retail store and online credit illustrates the continued importance of consumer credit to the high street and the economy.”                                                       

Table 1: New consumer credit lending

 

Aug 14

% change on prev. year

3 months to Aug 2014

% change on prev. year

12 months to Aug  2014

% change on prev. year

Total FLA consumer finance (£m)

5,361

+3

17,487

+8

71,308

+11

 

           

Data extracts:

           

Retail store and online credit (£m)

444

+9

1,461

+9

6,260

+9

Credit cards & personal loans (£m)

3,010

-1

9,326

+3

37,420

+5

Second mortgages (£m)

46

+31

144

+26

533

+34

Car finance (£m)

1,519

+11

5,518

+16

23,559

+22

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 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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