The Finance & Leasing Association has continued calls for the Government and the Bank of England to take immediate action to support the non-bank lending market.

FLA motor finance division members received an estimated 613,000 requests and had so far granted 90%

The calls come as new FLA figures released today show the number of COVID-19 related requests for forbearance reached more than 1,623,000 in the twelve weeks to 29 May 2020. Of that total, 88% (1,424,000) had been granted by the end of that period, the FLA said. The FLA has put forward a Term Funding Pipeline proposal to tackle the problem.

Stephen Haddrill, director general at the FLA, said: “Figures released today of a record fall in the UK economy in April of more than 20% highlights the urgent need for the Government and Bank of England to enable all lenders – bank and non-bank  – to access the funding required to meet the huge demand for forbearance and new credit as the economy reopens.

“FLA members have a track record of supporting businesses and households during difficult times, with our latest figures for April showing new lending of more than £4.7bn despite the lockdown. We have put forward a Term Funding Pipeline proposal, which we believe will open up the current financial support schemes to a wider group of lenders – there should be no further delay, action is needed now.”