Consumer finance new business grew by 11% in July

New figures released by the Finance & Leasing Association (FLA) have indicated that consumer finance new business grew by 11% in July 2022 compared with the same month in 2021. In the first seven months of 2022, new business was 22% higher than in the same period in 2021.

The credit card and personal loan sectors together reported new business up by 16% in July compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 7% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer finance market has seen a strong recovery so far this year as the UK economy emerged from the pandemic, but the overall value of outstanding consumer credit contracts at the end of July remained 9% lower than in February 2020. ”

“With household incomes under increasing pressure from the challenges of a high inflationary environment, the consumer finance market is in a strong position to meet demand for credit over the coming months, while providing targeted support to those customers who may need it.”

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”

New consumer credit lending

	Jul 2022	% change on prev. year	3 months to Jul 2022	% change on prev. year	12 months to Jul 2022	% change on prev. year
Total FLA consumer finance (£m)	9,552	11	29,749	12	113,207	19
Data extracts:
Retail store and online credit (£m)	757	7	2,353	7	9,592	5
Credit cards & personal loans (£m)	4,954	16	15,402	22	57,684	29
Second charge mortgages (£m)	146	45	410	42	1,406	55
Car finance (£m)	3,314	5	10,447	1	40,360	10