The latest figures from the Finance and Leasing Association (FLA) show that consumer credit markets continue to reflect current economic conditions.
Consumer finance provided by FLA members was down 12% in total in October compared to the same month in 2008. The detailed breakdown of credit products showed a mixed picture for lenders. Store instalment credit was down 4%, whereas secured loans were down 49% in October. The consumer credit market is down 17% in total in the last 12 months in comparison to the 12 months preceding October 2008.
The FLA’s head of consumer finance, Fiona Hoyle, said: “Our figures show that consumer credit providers continue to face a tough market. The biggest challenges for lenders in 2010 will be accessing affordable, wholesale funds to meet consumer demand for credit.
”The Government must move quickly to follow up its Pre-Budget Report proposal to review non-bank lending markets. Otherwise we may see further shrinkage in the market, which will mean less competition leaving consumers with less choice.”