Latest consumer finance figures from the Finance & Leasing Association (FLA) show that new credit provided by FLA members fell in the second quarter of 2009 by 17% compared with the same period a year earlier.
The reduction was most pronounced in the secured and unsecured lending markets where new business fell in Q2 2009 by 84% and 43% respectively, compared with Q2 2008. Store instalment credit continued to grow, with new business up by 5% in June and 1% in the second quarter of 2009.
The FLA says its figures “underline the importance of a proportionate response by the Government to concerns about the levels of personal debt.””