FLA: Growth in consumer lending

The Finance & Leasing Association has urged the Government to ensure that any new regulatory regime for consumer credit supports high street shoppers.

July saw overall growth of 10% in the consumer credit provided by FLA members, compared with the same month in 2011.

Store instalment credit grew by 33%, car finance by 28% (by value), second-charge mortgages by 11%, and credit cards and personal loans by 2% over the same period. Spending in the store card market fell.

Fiona Hoyle, head of consumer finance at the Finance & Leasing Association, said:"These figures show the importance of high street credit, whether provided by large retail chains or smaller independent stores, in helping consumers access the goods and services they require. The Government will soon be taking decisions on a proposed new regulatory regime for consumer credit, and must ensure that high street businesses can grow and deliver consumer choice."