Secured loan business down 19% in August
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The latest figures from the Finance & Leasing Association show consumer credit business was up 1% in August but secured loan business was down by 19%.
Secured loan lending was £22m in August 2010, down 19% on the previous year.
Secured loan business totalled £70m in the three months to August 2010, also down 15% on the previous year.
In the twelve months to August 2010, secured loan business totalled £310m, a 45% drop on the previous year,
Fiona Hoyle, head of consumer finance at the FLA, says: “The consumer credit market remains subdued, reflecting consumers’ cautious approach to spending. Over the next few months, we will see what effect last week’s Comprehensive Spending Review may have.
“Given the fragility of the credit markets and consumer spending generally, the Government needs to ensure that its current review of Consumer Credit and Personal Insolvency does not put further pressure on the shrinking market and make it harder for people to get credit.”
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Readers' comments (1)
Anonymous | 26 Oct 2010 3:54 pm
Is the drop really down to consumers cautious approach to spending! In my experience I doubt that a significant number of the old secured loan market clients have suddenly taken a vow of osterity!! Perhaps the more likely reason is that a lot of clients who would typically have taken secured loans cannot get one any more due to tighten criteria, reduced LTV's and falling house prices.
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