New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in April 2025 by 1% compared with the same month in 2024. In the first four months of 2025, new business in this market was 4% higher than in the same period in 2024.

The credit card and personal loans sectors together reported new business in April 2% higher than in the same month in 2024, while the retail store and online credit sector reported a fall in new business 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 reported modest new business growth in April as higher vehicle excise duties took effect, and consumer spending power was hit by higher energy, telephone and water bills.

“The FLA’s Q2 2025 industry outlook survey results were in line with the previous quarter as 80% of consumer finance respondents expected some increase in new business over the next year despite subdued consumer confidence. The prospect of further cuts in interest rates, strong consumer savings, and the potential for growth as the UK transitions to greener assets should contribute to single-digit new business growth by value over the next 12 months.

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

Source:  FLA