FLA reports double-digit growth in consumer finance

  The latest data from the Finance & Leasing Association shows strong growth across the board in new consumer finance business during February 2014.     Over the course of the month, the FLA saw a 14% rise in new business, when compared against February 2013.   Store credit – including both bricks-and-mortar retail outletsRead More

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The latest data from the Finance & Leasing Association shows strong growth across the board in new consumer finance business during February 2014.

 

 

Over the course of the month, the FLA saw a 14% rise in new business, when compared against February 2013.

 

Store credit – including both bricks-and-mortar retail outlets and online finance – saw a 12% rise in new business growth.

 

Point-of-sale finance grew 23%, and second charge mortgages were up by 32% volume and 57% value.

 

Overall, just less than £5 billion in new consumer credit lending was approved in February 2014, with £439m on store credit, £2.8bn on credit cards and personal loans, £44m on second mortgages and £1.5bn on car finance deals.

 

With a change in regulation in the sector, the FLA is now looking to ensure that things continue to run smoothly for customers.

 

Fiona Hoyle, head of consumer finance at the association, said: “On April 1st, the Financial Conduct Authority began supervising an additional 50,000 consumer credit firms.

 

“The challenge now is to get them through the authorisation process within a sensible timescale so that the supply of responsibly provided credit can be maintained.”

 

In the three months to February 2014, £16.4bn of FLA consumer finance was approved, up 15% over the previous year.

 

During the full 12 months to February 2014, new consumer finance totalled £67.4bn, an 8% annual increase.

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