Slow credit markets in July
At a time when significant new consumer protection measures are being implemented in the financial services sector, figures published by the Finance & Leasing Association show that consumer credit markets remain subdued.
The figures from the FLA show that car finance was the only form of lending to grow in July compared to the same time last year. Store card finance and store instalment credit each fell by 24% over the same period. Credit card lending reflected the current trend for saving over spending and was almost a tenth down on last year.
Commenting, Fiona Hoyle, FLA head of consumer finance, said: “The consumer credit market remains subdued. But for consumer credit lenders, the remaining months in 2010 will be devoted to implementing new regulations delivering important new rights for consumers. These include clearer information on credit products and how much they will cost, helping customers make the right choices for them.
“There are also new rules on responsible lending, as well for credit and store cards, allowing customers to take more control over their credit limits and what happens when interest rates change.
“In their forthcoming review of Credit and Personal Insolvency, the Government needs to take stock of the significant changes that will be made to consumer credit regulation in the coming months when assessing the case for any further change.”