New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in February 2020 by 6% compared with the same month in 2019.
Credit card and personal loan new business together grew in February 2020 by 9% compared with the same month in 2019, while retail store and online credit new business increased by 2% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The consumer finance market represented by FLA members made a modest start to 2020, but faces serve disruption to new business over the coming months. The economic impact of the coronavirus is expected to lead to a contraction in consumer spending in the second quarter of this year greater than in any quarter during the financial crisis.
“In recent weeks consumer finance providers have seen a huge rise in requests for forbearance. The FLA is calling for urgent action by the Government and Bank of England to open up financial support schemes to all lenders, including non-banks, so that they can continue to provide new lending and meet the huge demand for forbearance.”