Ministers warned not to restrict credit too tightly
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Consumer borrowing fell by 6 per cent in 2010, according to the Finance & Leasing Association.
In December – traditionally a month when more customers use credit – the FLA actually saw a fall in credit sales. Credit card spending was down by 5 per cent, store cards and store instalment credit fell by more than a quarter each.
The figures reflect a difficult month on the high street with poorer than expected Christmas sales, doubtless due in part to the icy weather. One exception, according to the FLA, was the buoyant consumer car lending market. Without this boost, consumer credit overall would have fallen by 10 per cent during 2010.
Fiona Hoyle, the FLA's head of consumer finance, said: "These figures confirm that there is no such thing as 'easy credit'. Stricter lending requirements mean that some consumers are finding it harder to access credit. Low consumer confidence is also a major factor in this fall in lending.
"Against this background of reduced lending and declining consumer confidence, the Government needs to be careful not to regulate some kinds of credit out of the market. For example, current proposals to restrict the store card sector could have serious repercussions for a high street recovery," Ms Hoyle added.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments