Consumer finance new business fell by 6% in November 2022

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 6% in November 2022 compared with the same month in 2021. In the eleven months to November 2022, new business was 15% higher than in the same period in 2021.

The credit card and personal loan sectors together reported a fall in new business of 9% in November compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 3% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “November saw the consumer finance market represented by FLA members report a fall in new business for the first time since February 2021.  The performance across finance products was mixed, reporting either slower new business growth or lower levels of new business compared with November 2021.

“Nevertheless, consumer finance new business provided by FLA members is on track to be 10% higher in 2022 than its pre-pandemic level in 2019, and the value of consumer finance outstanding agreements at the end of 2022 is expected to be 1% higher than at the end of 2019.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Table 1: New consumer credit lending