10 May 2013
New figures released today by the Finance & Leasing Association (FLA) highlight the importance of point of sale credit for consumers, including in the motor finance sector where new business has grown 19% in the first quarter of this year.
Commenting on the figures, Fiona Hoyle, Head of Consumer Credit at the FLA, said: “The statistics show that consumers are continuing to use credit for everyday purchases like sofas, fridges, kitchens and cars. But we know that trading conditions in the High Street remain challenging.
“This makes it more vital than ever that the Government’s proposed transfer of consumer credit regulation to the Financial Conduct Authority takes place on a sensible timetable, to ensure that consumers can continue to access credit when they need it and remain well protected.”
Table 1: New consumer credit lending
|Mar 13||% change on prev. year||3 months to Mar 2013||% change on prev. year||12 months to Mar 2013||% change on prev. year|
|Total FLA consumer finance (£m)||5,609||+2||13,621||+1||55,089||+4|
|Store cards (£m)||100||-14||272||-13||1,427||-15|
|Credit cards & personal loans (£m)||2,528||-10||7,271||-9||31,716||-3|
|Store instalment credit (£m)||232||+1||674||+3||2,779||+15|
|Second mortgages (£m)||35||+30||93||+26||345||+17|
|Car finance (£m)||2,587||+18||5,002||+19||17,486||+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 £76.4 billion of new finance to UK businesses and households. £54.9 billion of this was in the form of consumer credit representing about 30% of all unsecured lending in the UK.
- The British Retail Consortium recorded a 5.2% drop in footfall during March 2013.