FLA calls on government to urgently review non-bank lending markets
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The Finance and Leasing Association has urged the government to follow up its Pre-Budget Report proposal to review non-bank lending markets.
The Finance and Leasing Association has called on the government to follow up its Pre-Budget Report proposal to review non-bank lending markets.
Consumer finance provided by FLA members was down 12% in total in October compared to the same month in 2008.
Store instalment credit was down 4%, whereas secured loans were down 49% in October.
The consumer credit market is down 17% in total in the last 12 months in comparison to the 12 months preceding October 2008.
Fiona Hoyle, head of consumer finance at the FLA, says: “Our figures show that consumer credit providers continue to face a tough market. The biggest challenges for lenders in 2010 will be accessing affordable, wholesale funds to meet consumer demand for credit.
“The government must move quickly to follow up its Pre-Budget Report proposal to review non-bank lending markets. Otherwise we may see further shrinkage in the market, which will mean less competition leaving consumers with less choice.”
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