Credit card lending down 2% in November
By UK CreditCards.com
Credit card lending fell by the smallest amount for a year in November, according to new figures released January 26.
The Finance and Leasing Association (FLA) confirmed that credit card borrowing reached £2.67bn during the month, which represented a decline of just 2% on a year-on-year basis.
Fiona Hoyle, head of consumer finance at FLA, attributed the encouraging data to consumers making major purchases earlier to beat the VAT rise at the start of 2010.
"The FLA figures show early signs that consumer confidence is returning," she said. However, Ms Hoyle also noted that the recovery could be impacted by new government regulations that are likely to restrain credit card providers in the coming year. Among the changes included in the proposals are a ban on increasing credit limits without consumers' consent and hiking interest rates on existing debts.
A study released last week by the Post Office suggested that as many as 12 million Britons will use their credit cards for everyday expenditure in January.
Published: 28 January 2010
- Financial capability: Managing money and planning ahead – A recent report on financial capability based on six elements shows many Brits need to hone their financial skills. This short series will give tips on how to improve each area ...
- What we buy and how we spend: A decade of change – The Payments Council took a look back on the past decade in a February 2013 report, which found that Brits are splashing out on fun -- and moving toward a cash-free lifestyle ...
- Glimmers of optimism appear among financial gloom – With Christmas debt looming and warnings of a triple-dip recession in the headlines, you might think consumers are feeling pessimistic about their finances. But recent research shows otherwise ...