Consumer finance still weakened by pandemic
Consumer finance new business fell by 56% in May 2020 compared with the same month in 2019.
This is according to data released by the Finance and Leasing Association (FLA), which also found figures have decreased by 27% in the five months to May 2020.
Credit card and personal loan new business together fell in May 2020 by 46% compared with the same month in 2019, while retail store and online credit new business was 25% lower over the same period.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The latest FLA figures continued to show that some sectors have been more severely hit by the lockdown restrictions than others. The strength of online sales in recent months meant that the retail store and online credit sector has recorded the smallest rates of contraction in new business since March.
“This week the industry has been asked to extend the period of forbearance to households. To provide this and meet a strong pick-up in demand for new credit, the government and Bank of England need to extend financial support schemes to all lenders, including non-banks. This will also help to ensure that a competitive and vibrant consumer finance market remains post-crisis.”
