There is a danger that lenders will be unable to offer credit for a reasonable price in the future as a result of regulations, it has been claimed.
According to the Finance & Leasing Association’s (FLA’s) chief economist and head of research Geraldine Kilkelly, a “barrage” of new rules could make it difficult for the sector to offer competitive products to consumers.
She made the comments as her organisation unveiled figures which showed new credit levels from its members were down 17 per cent year-year during the second quarter of 2009.
Secured and unsecured
And more negative growth could occur in the future, with Ms Kilkelly claiming both Westminster and Brussels are restricting the industry’s ability to lend.
The FLA’s consumer finance head Fiona Hoyle said last month that the Office of Fair Trading’s Irresponsible Lending Guidance and the government’s request that lenders make credit available to aid the economy are “at odds”.