New figures released (15/07/25) by the Finance & Leasing Association (FLA) show that consumer finance new business grew in May 2025 by 2% compared with the same month in 2024. In the first five 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 May 2% higher than in the same month in 2024, while the retail store and online credit sector reported a fall in new business of 5% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The consumer finance market represented by FLA members has grown overall each month in 2025 so far at modest single-digit rates apart from March. The fall in the retail store and online credit sector in May was in line with weaker retail sales over the same period.

“Our latest research suggest that UK new consumer credit would grow by 6% in 2025, with credit card finance new business also up by 6% this year. Consumer confidence has improved slightly in recent months with the prospect of further cuts in interest rates in the coming months.

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