New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in November 2024 by 1% compared with the same month in 2023. In the eleven months to November 2024, new business in this market was 1% higher than in the same period in 2023.

The credit card and personal loans sectors together reported new business in November 3% lower than in the same month in 2023, while the retail store and online credit sector reported a fall in new business of 7% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The consumer lending markets represented by FLA members, with the exception of second charge mortgages, remained subdued in the run-up to Christmas.

“We expect FLA consumer finance new business to reach £114.1 billion in 2024, 1% higher than in 2023. The outlook for 2025 remains challenging. Despite the lower inflation and interest rate environment, continued pressure on real disposable incomes has hit consumer confidence and consumer spending. FLA’s latest industry outlook survey suggested that just under two-thirds of consumer finance respondents expected some increase in new business over the next year.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Source:  FLA