Consumer finance increased by 39% in February

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 39% in February 2022 compared with the same month in 2021. In the first two months of 2022, new business was 45% higher than in the same period in 2021.

The credit card and personal loan sectors together reported new business up by 44% in February compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 15% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer finance market’s strong performance in February largely reflected the distorting effects of shop closures during the third UK lockdown last year and pent-up demand as the economy emerges from the pandemic and the UK learns to live with Covid.”

“The near-term economic outlook remains difficult as consumers and businesses face higher prices and increased costs across the board. Our latest research suggests that new consumer credit in the UK will grow by 13% in 2022 as the market continues to recover and FLA members support households to make essential purchases.

“As always, any customer worried about meeting payments should speak to their lender as soon as possible to find a solution.”

New consumer credit lending

	Feb 2022	% change on prev. year	3 months to Feb 2022	% change on prev. year	12 months to Feb 2022	% change on prev. year
Total FLA consumer finance (£m)	8,081	39	25,554	34	105,720	28
Data extracts:
Retail store and online credit (£m)	677	15	2,360	6	9,284	8
Credit cards & personal loans (£m)	4,322	44	13,636	39	52,536	33
Second charge mortgages (£m)	119	70	309	60	1,192	80
Car finance (£m)	2,661	39	8,390	37	38,681	29