There was a 6% rise in consumer credit lending last year.
Latest figures, released today by the Finance & Leasing Association (FLA), show the strongest growth was in credit provided through car dealerships and high street stores.
December saw second charge lending total £23 million, a 15% rise year-on-year.
Total secured loan lending for the year was £326 million, up 14% on 2011. However, the number of new contracts increased by only 2%.
“Today’s figures underline the need for consumers to be able to access affordable and responsibly-provided credit,” said Fiona Hoyle, head of consumer finance at the FLA.
“2013 will be a pivotal year for the consumer credit industry as the Government prepares to publish its consultation on the new regulatory regime. It is vital that the new system supports the diversity of this market.”
For much of 2012, growth was driven by the point-of-sale credit markets. Consumer motor finance was up by 22% to £16.7 billion and retail store instalment credit grew by 15% to £2.8 billion.