5 September 2013
New figures released today by the Finance & Leasing Association (FLA) show growth of 8% in consumer finance provided by FLA members during July. Point-of-sale car finance increased by 27% during the period, and store instalment credit rose by 7%. Second charge mortgage new business was up 32% by value in July.
Commenting, Fiona Hoyle, Head of Consumer Credit at the FLA, said: “Our latest figures show the important contribution the credit sector provides to the wider economy, with point-of-sale finance seeing continued growth. The transfer of consumer credit regulation to the Financial Conduct Authority began this week, with the start of applications for Interim Permissions. Maintaining capacity in the credit market should be a priority now that the countdown to the new regime has begun.
“A smooth and proportionate transition process will be essential.”
Table 1: New consumer credit lending
|July 13||% change on prev. year||3 months to July 2013||% change on prev. year||12 months to July 2013||% change on prev. year|
|Total FLA consumer finance (£m)||4,941||+8||14,589||+6||56,505||+5|
|Store cards (£m)||107||-8||332||-7||1,398||-13|
|Credit cards & personal loans (£m)||2,743||-1||7,914||-4||31,473||-5|
|Store instalment credit (£m)||260||+7||757||+7||2,863||+9|
|Second mortgages (£m)||41||+32||119||+42||394||+29|
|Car finance (£m)||1,658||+27||5,082||+27||19,000||+24|
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 short-term credit lenders, and instalment credit providers.
- In 2012 FLA members provided £76.6 billion of new finance to UK businesses and households. £55.1 billion of this was in the form of consumer credit representing about 30% of all unsecured lending in the UK.