Credit card lending decline 'lowest for a year'
27 January 2010 13:37:05
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| Credit card borrowing shrank by just 2% in November. |
The Finance and Leasing Association (FLA) confirmed that £2.67bn was borrowed on credit cards during the month, with overall consumer finance reaching £4.34bn.
In addition, the value of purchases using store cards increased by 2% compared with November 2008, while in-store credit was found to have risen by 1% in the past 12 months.
According to the body, the credit card lending figure represented the smallest monthly decline for a year, mainly due to Britons beginning their Christmas shopping rush.
"The FLA figures show early signs that consumer confidence is returning," commented Fiona Hoyle, head of consumer finance at the FLA.
However, Ms Hoyle also warned that a host of new regulations imposed by the government mean credit providers face a number of challenges in the coming year.
Examples of these changes include a ban on increasing credit limits without consumers' consent and hiking interest rates on existing debts.
Last week, new research from the Post Office suggested that 12 million Britons will use their credit cards to fund day-to-day expenses in January.
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