The Finance & Leasing Association has renewed its commitment to strive to ensure that the new
Financial Conduct Authority (FCA) leads to credit becoming more readily available.

FLA data for 2011 shows that spending using personal loans, credit cards and store cards all fell compared to 2010.

But loans through dealers for car purchases grew to 62.9% of the total from 2010’s 53.3%.

Fiona Hoyle, FLA head of consumer finance, said: “Consumers continue to take a cautious approach to loans.

"This reinforces the need for the Government to make sure that any changes to regulations do not limit the supply of affordable, responsibly-provided credit.”

Under the new Financial Services Bill regulatory responsibility for credit will transfer to the FCA, which comes into force next year.

“We will work with the Government to ensure any new regime is appropriate for a market as diverse as consumer credit,” said Hoyle.

The FCA replaces the Financial Services Authority, which was held responsible for the mis-selling of PPI (payment protection insurance).

Most financial institutions providing loans directly to people buying cars are not offering PPIs. They await guidance from the FCA in 2013.