Credit, Collections & Insolvency News
New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business in November 2023 was 2% higher than in the same month in 2022. In the eleven months to November 2023, new business was also 2% lower than in the same period in 2022.
The credit card and personal loans sectors together reported new business up by 7% compared with the same month in 2022, while the retail store and online credit sector reported new business growth of 1% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The run-up to Christmas saw the strongest monthly new business growth reported by the credit card finance and personal loans sectors since September 2022, but overall growth remained modest.
“Better news on inflation and interest rates has provided more certainty for consumers, but the adverse impact of previous rises in these measures on household disposable incomes means consumer spending is likely to remain subdued in the near-term. The FLA’s Q4 2023 Industry Outlook Survey suggests that 71% of consumer finance respondents expect some increase in new business over the next year, down from 75% in the Q3 2023 survey.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
New consumer credit lending
|
Nov 2023 |
% change on prev. year |
3 months to Nov2023 |
% change on prev. year |
12 months to Nov2023 |
% change on prev. year |
|
| Total FLA consumer finance (£m) |
9,689 |
2 |
29,353 |
0 |
113,942 |
-2 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
1,144 |
1 |
2,822 |
-1 |
9,982 |
2 |
| Credit cards & personal loans (£m) |
5,095 |
7 |
14,754 |
1 |
58,970 |
-2 |
| Second charge mortgages (£m) |
123 |
-6 |
353 |
-15 |
1,385 |
-11 |
| Car finance (£m) |
2,936 |
-5 |
10,222 |
-2 |
39,059 |
-5 |