How much has business dropped over the year?
The Finance & Leasing Association (FLA) has released new figures showing new consumer finance business 3% lower than in the same period in 2022.
According to its figures for October, new business in the credit card and personal loans sectors was up by 2% year on year, while in the retail store and online credit sectors, new business declined by 4% year over year.
Geraldine Kilkelly, director of research and chief economist at the FLA said the latest figures suggest that the value of new consumer credit in the UK could be expected to grow by more than 2% in the next year, according to industry forecasts.
“October saw the consumer finance market represented by FLA members hold steady, with a continuation of trends in the individual sectors seen in much of 2023 so far,” said Kilkelly.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
Fiona Hoyle, director of consumer and mortgage finance and inclusion at the FLA, also commented on the latest figures, particularly for the second charge mortgage market.
“The distribution by purpose of loan in October showed that 61% of new agreements were for the consolidation of existing loans, 12% for home improvements, and a further 23% for both loan consolidation and home improvements,” Hoyle said.
She indicated that the recent trends reflect a strong performance in 2022 that had not been sustained in.
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