Direct loans showing signs of recovery
Consumer credit lending in total rose by 5% in January, representing the first overall rise since August.
Along with growth in the personal loans market, there was also growth in credit cards and the car finance market, of 3% and 16% respectively compared with January 2010.
But High Street credit continued to fall as consumer confidence remains low, with store card spending shrinking by 18% and store instalment credit down by 11% compared with January 2010. Second mortgages fell by 19%.
Commenting, Fiona Hoyle, FLA head of consumer finance, said: “In the last twelve months our members provided over £50 billion of consumer credit, but consumer confidence remains low. A sustained economic recovery is dependent on a competitive market that creates more choice for consumers. It is important that any changes to the regulatory regime for credit markets, under a new Financial Conduct Authority, do not impede this growth.”