Consumer credit markets improve

The UK has enjoyed a gradual improvement within its consumer credit markets, according to new figures produced by the Finance & Leasing Association (FLA). This new data, which comes directly from the trade body for the consumer credit industry, indicates that there was a steady advance in consumer credit demand over the first quarter of 2012.

Total consumer finance from FLA member firms rose 9% in March, compared with figures generated for March of last year. According to the report, credit cards, personal loans, second mortgages and store instalment credit cards all enjoyed a rise in March and over the first quarter of the year, compared with 2011 data.

Second mortgages were up 14% for the first quarter, compared with the previous year, just behind car finance which was up 20%. Commenting on the figures, FLA head of consumer finance Fiona Hoyle admitted “consumer confidence is showing signs of a tentative return.

“But many consumers continue to be cautious, reinforcing the need for the Government to make sure that their proposed changes to consumer credit regulation do not limit the supply of affordable, responsibly-provided credit."