Increase in consumer finance lending, says FLA

There was a 7% increase to £4.6bn in October 2012 compared to the same month a year earlier.

FLA members' share of the UK consumer credit market was almost 30% (29.8%) in the twelve months to October.

Other key points:

- Consumer car finance grew to £1.5 billion in October, an increase of 32% compared with the same month in 2011.

- Store instalment credit grew for the ninth consecutive month in October, with new business up 28% to £257 million.

- Growth in second charge mortgage new business also contributed to the overall growth in consumer finance. New business in October grew 35% by value (to £31 million) and 20% by volume.

Fiona Hoyle, Head of Consumer Finance at the FLA, said:

"Continuing growth in the intermediated credit markets - both high street and motor credit - again demonstrates the importance of responsibly-provided retail credit for consumers and the wider economy.

"Today's figures also highlight how important it is that the Government's proposed new regulatory regime for credit supports the continued vitality of the intermediated credit markets. Unless the time is taken to design a genuinely proportionate new system, economic growth will be put at further risk."