Credit card providers note decline in lending
By UK CreditCards.com
New lending from credit card and loan firms fell off substantially in the second quarter of 2009, industry figures reveal.
The Finance & Leasing Association (FLA) said that credit card lending from members had fallen by 7%, while unsecured loans were down 43% on the quarter.
Overall, a decline of 17% across all types of credit was noted, with only a 1% rise in store installment lending helping to counterbalance the losses.
A tough regulatory environment was partly blamed by the FLA for the trends.
Geraldine Kilkelly, FLA's head of research and chief economist, said that a "barrage" of rules from both Westminster and Brussels were making things more difficult for credit providers.
She added: "The wave of new regulation … could jeopardise lenders' ability to make available the credit that will undoubtedly be needed to support a sustainable economic recovery."
New credit card lending was also revealed by the organisation to have fallen by 6% year-on-year.
Published: 26 August 2009
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