Secured loan business drops 21% year-on-year
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Secured loan business fell 21% in January to £21m, down 19% compared to January 2010, the latest market figures from the Finance & Leasing Association show.
In the three months to January, business was down 26% at £64m, compared to the same period last year.
However FLA figures also show that direct loans increased for the third consecutive month, with new business in January up 27% compared with January 2010.
Consumer credit lending in total rose by five percent in January, representing the first overall rise since August.
Along with growth in the personal loans market, there was also growth in credit cards and the car finance market, of 3% and 16% respectively compared with January 2010.
Fiona Hoyle, head of consumer finance at the FLA, says: “In the last twelve months our members provided over £50bn of consumer credit, but consumer confidence remains low.
“A sustained economic recovery is dependent on a competitive market that creates more choice for consumers. It is important that any changes to the regulatory regime for credit markets, under a new Financial Conduct Authority, do not impede this growth.”
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