New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in September 2020 by 5% compared with the same month in 2019, and contracted by 19% in the nine months to September 2020.
Consumer car finance new business by value grew in September by 11% compared with the same month in 2019, while retail store and online credit new business fell by 1% over the same period. Credit card and personal loan new business together fell by 21% in September 2020 compared with the same month in 2019.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The consumer finance market continued to report an easing in the rate of contraction in new business. This was primarily driven by the continued strong performances of the car finance and retail store and online credit sectors.
“The latest FLA figures show the importance of consumer finance in supporting the UK economic recovery. As we enter a new phase of national lockdowns across the UK, it is vital that the Government and Bank of England support all lenders, including non-banks, by providing direct access to funding. This will ensure that the consumer finance industry is able to meet the ongoing demand for forbearance and new credit.”