Secured loan business down 20% year-on-year
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The latest figures from the Finance & Leasing Association show secured loan business in October was down 20% compared to October 2009.
There was £24m worth of secured loan business carried out in October and £70m in the three months to October 2010.
Overall, secured loan business amounted to £301m in the 12 months to October 2010, down 29% on the same period the previous year.
Across all channels, consumer lending was down 8% in October. Some sectors saw much larger declines, including the credit offered by high street retailers, which totalled £297m in October compared with £426m in the same period last year. The value of new store card finance fell by 33% and store instalment credit by 27% compared with October 2009.
Fiona Hoyle, FLA Head of Consumer Finance, says: “The latest figures show a continued decline in most types of consumer credit, and particularly for store cards and in-store credit. We hope the Government will therefore think very carefully before imposing any further regulatory restrictions on these markets.
’For example, interest-rate caps on credit and store cards and cooling-off periods for store cards could drive some lenders out of the market and further reduce access to affordable credit.”
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