Government needs to act now to support non-bank lenders as forbearance requests reach over 1.6 million

The Finance & Leasing Association continues to call for the Government and the Bank of England to take immediate action to support the non-bank lending market, as new FLA figures released today show that the number of Covid-19 related requests for forbearance reached 1,623,000 in the twelve weeks to 29 May 2020.  Of that total, 88% had been granted by the end of that period.

Stephen Haddrill, Director General at the FLA, said:

“Figures released today of a record fall in the UK economy in April of more than 20% highlights the urgent need for the Government and Bank of England to enable all lenders – bank and non-bank  – to access the funding required to meet the huge demand for forbearance and new credit as the economy reopens.

“FLA members have a track record of supporting businesses and households during difficult times, with our latest figures for April showing new lending of more than £4.7 billion despite the lockdown.  We have put forward a Term Funding Pipeline proposal which we believe will open up the current financial support schemes to a wider group of lenders – there should be no further delay, action is needed now.”

In the twelve weeks to 29 May 2020, FLA members received an estimated 1,623,000 requests¹ for Covid-19 related forbearance from customers.  1,424,000 (88%) of these requests had been granted by that date.

Over the same period, FLA asset finance division members received an estimated 287,000 requests for forbearance and had so far granted 83%.  FLA motor finance division members received an estimated 613,000 requests and had so far granted 90%.  FLA consumer finance division members had received an estimated 723,000 requests for forbearance and had so far granted 88%.

Note 1: A single request for forbearance may cover multiple agreements held with that lender.

Note to editors:

1. In 2019, FLA members provided £140.3 billion of new finance to UK businesses and households. £104.7 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. £35.7 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2019.
2. For media enquiries, please contact the FLA press office on 020 7420 9656.