Customers 'still cautious about credit'
28/04/2010
Britons are still being wary about taking out credit, despite the recession having ended months ago, the Finance and Leasing Association (FLA) has said.
The total amount of credit lent in February this year by FLA members - including credit and store cards - was £3.7 billion, down five per cent on January and 30 per cent on February 2008.
According to FLA head of consumer finance Fiona Hoyle, the three main political parties have focused on the wrong priorities with plans to cap credit spending such as store cards and doorstep loans, since the recovery is so "fragile" at present.
She stated: "The focus should be on helping customers in financial difficulties rather than rate caps which could effectively restrict the assistance lenders can provide."
It is not the first time Ms Hoyle has spoken out on the issue during the election campaign, launching a specific attack earlier this month on the Liberal Democrat plans to curb credit and store card charges.
She said that in countries where a cap exists, that level becomes the "normal" price for credit.
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