New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in April 2020 by 64% compared with the same month in 2019, and decreased by 19% in the first four months of 2020.
Credit card and personal loan new business together fell in April 2020 by 48% compared with the same month in 2019, while retail store and online credit new business was 30% lower over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “All consumer finance sectors reported falls in new business in April, although the car finance market was hardest hit. Online purchases reached a record-high of 30% of retail sales in April, which stemmed the impact of the lockdown on the retail store and online credit sector.
“With much of the retail sector reopening during June, the FLA urges the Government and Bank of England to take immediate action to extend financial support schemes to all lenders, including non-banks, so that they can meet the huge ongoing demand for forbearance and the pent-up demand for new lending.”