FLA announce that consumer finance new business rose 1% in February
New figures released today by the Finance & Leasing Association (FLA) show growth of 1% in consumer finance new business in February 2019, compared with the same month last year.
Retail store and online credit grew in February by 6%, compared with the same month in 2018, while the personal loan and credit card finance sectors together reported a fall in new business of 4%. Over the same period, second charge mortgage new business grew 20% by value.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The consumer finance market has seen modest growth in new business overall since November as confidence about the economic outlook has weakened.
We continue to expect low single-digit new business growth in 2019 as a whole if uncertainty about the outlook for the UK economy reduces.”
Crackdown on high-interest lending announced by FCA
The rent-to-own sector faces a price cap similar to limits on payday loans, but the financial regulator will not rush to impose the same restrictions on overdrafts. The Financial Conduct Authority (FCA) has spent nearly two years studying borrowing at high interest rates.