Credit, Collections & Insolvency News
Latest figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 10% in December 2025 compared with the same month in 2024. In 2025 as a whole, new business in this market was 6% higher than in 2024.
The credit card and personal loans sectors together reported new business 9% higher in December than in the same month in 2024, while the retail store and online credit sector reported a 2% fall in new business over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer finance market reported a strong end to 2025 with growth across most of the main finance products in December. For FLA members, new lending of over £122 billion was a record year.
“With inflation and interest rates on a downward path this should support further growth in 2026 as FLA members continue to support households make essential purchases.”
New consumer credit lending
| Dec 2025 | % change on prev. year | 3 months to Dec 2025 | % change on prev. year | 12 months to Dec 2025 | % change on prev. year | |
| Total FLA consumer finance (£m) | 10,388 | 10 | 30,672 | 7 | 122,465 | 6 |
| Data extracts: | ||||||
| Retail store and online credit (£m) | 1,040 | -2 | 2,932 | -3 | 9,095 | -4 |
| Credit cards & personal loans (£m) | 5,930 | 9 | 16,460 | 6 | 64,143 | 5 |
| Second charge mortgages (£m) | 182 | 41 | 608 | 33 | 2,142 | 24 |
| Car finance (£m) | 2,817 | 15 | 9,212 | 7 | 41,119 | 6 |
The latest EY ITEM Club data has forecasted that consumer credit lending growth will remain largely flat at 5.8% in 2026 (from 6.1% in 2025), 5.7% in 2027, and 5.3% in 2028. Even though consumer credit remains expensive, demand is expected to remain steady over the coming years. This is largely due to a combination…
Read more
72% of consumers abandon their baskets after being declined for credit at checkout, despite over half saying they would look for an alternative finance option. The results, from independent research commissioned by Payl8r, with the figures suggesting that single-lender checkout structures may be contributing to avoidable conversion loss. Payl8r says that the research reveals ‘false…
Read more