Consumer finance new business grew by 21% in April 2022
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 21% in April 2022 compared with the same month in 2021. In the first four months of 2022, new business was 30% higher than in the same period in 2021.
The credit card and personal loan sectors together reported new business up by 30% in April compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 12% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The consumer finance market continued its recovery in April following the pandemic, with the value of new business growing across each of the main finance products. The value of outstanding contracts at the end of April remained 2% lower than in February 2020.
“Our latest research suggests that new business growth in the consumer finance market will slow as the pressure on household incomes from higher inflation, interest rates, and taxes weighs on consumer spending. UK new consumer credit is expected to grow by 29% in the first half of 2022 and by 12% in the second half of the year.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”