11 April 2013
New figures released today by the Finance & Leasing Association (FLA) show that new consumer finance was provided by FLA members in February at a similar level to February 2012. The point of sale finance markets continued to grow – consumer motor finance was up 22%, and store instalment credit grew by 4%. The Government’s proposed new system of credit regulation needs to support this economically important market.
Commenting, Fiona Hoyle, Head of Consumer Credit at the Finance & Leasing Association said: “The consumer credit market creates jobs and contributes billions to the economy, so maintaining the supply of credit is absolutely vital.
“Our main concern about the Government’s proposed new system of credit regulation is the very short timetable. The new rules are not yet written but are due to be implemented in less than a year’s time.
“We need a well-managed transition process which will give firms the time they need to implement the new system while continuing to serve their customers.”
Table 1: New consumer credit lending
|Feb 13||% change on prev. year||3 months to Feb 2013||% change on prev. year||12 months to Feb 2013||% change on prev. year|
|Total FLA consumer finance (£m)||3,846||0||12,606||+1||54,964||+5|
|Store cards (£m)||81||-10||354||-17||1,443||-15|
|Credit cards & personal loans (£m)||2,282||-9||7,691||-6||31,988||-2|
|Store instalment credit (£m)||223||+4||703||+4||2,776||+16|
|Second mortgages (£m)||28||+17||81||+21||337||+15|
|Car finance (£m)||1,144||+22||3,517||+22||17,094||+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 short-term credit lenders, and instalment credit providers.
- In 2012 FLA members provided £76.3 billion of new finance to UK businesses and households. £54.9 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK.