Credit growth shows importance of getting the new regulations right

9 July 2013

New figures released today by the Finance & Leasing Association (FLA) show a 5% increase in new consumer finance in May 2013. For example, the second charge mortgage market continued its buoyant start to the year with new business growing 43% by value and 23% by volume.

Commenting, Fiona Hoyle, Head of Consumer Credit at the FLA, said: “These figures show continued demand for the affordable, responsibly-provided credit which is so important for economic recovery.

“As the Government finalises the statutory framework for the transfer of consumer credit regulation to the Financial Conduct Authority in April 2014, it is vital that the supply of credit to consumers is maintained.  The start of the new regime is only nine months away, and the new regulator has a lot to do in a very short time to ensure a sensible transition process.”

Table 1: New consumer credit lending

  May 13 % change on prev. year 3 months to May 2013 % change on prev. year 12 months to May 2013 % change on prev. year
Total FLA consumer finance (£m) 5,002 +5 15,400 +5 55,896 +4
Data extracts:            
Store cards (£m) 121 -2 324 -6 1,421 -13
Credit cards & personal loans (£m) 2,742 -4 7,803 -6 31,654 -4
Store instalment credit (£m) 259 +4 747 +6 2,821 +12
Second mortgages (£m) 40 +43 113 +43 371 +22
Car finance (£m) 1,711 +25 6,028 +24 18,267 +23

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 short-term credit lenders, and instalment credit providers.
  2. 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.

Become a member

What are the benefits of becoming an FLA Member?