Government needs to act now to support non-bank lenders as forbearance requests reach almost 1.2 million

The FLA has renewed its call to the Government and the Bank of England to take urgent action to support the non-bank lending market. New figures released today by the Finance & Leasing Association (FLA) show that FLA members provided just over £138 billion of new business in the twelve months to March 2020. Of this total, £44 billion was provided by non-bank lenders.

Stephen Haddrill, Director General at the FLA, said: “The asset, consumer and motor finance markets have been hit hard by the measures taken to deal with the coronavirus crisis, with a 20% fall in new business in March alone. FLA members have also faced almost 1.2 million Covid-19 related requests for forbearance, of which 75% have already been granted. The industry is committed to supporting their customers during these exceptional times.

“Urgent action is needed – in days, not weeks – to deliver financial support to the non-bank lending sector to ensure that we maintain a financial services sector that is diverse, innovative and competitive.”