Consumer lending comes in a number of forms including credit cards, overdrafts, personal loans and motor financing, to name a few. As of March 2017, consumer lending by banks for personal loans, overdrafts and other lending amounted to 62 billion British pounds. Almost 40 million individuals in the UK had been granted some form of loan or credit in 2017. Moreover, there were 3.6 million adults in the United Kingdom (UK) that had taken money from a friend or family member, with a further 100 thousand taking the risk of acquiring a loan through an unregistered lender.
The average person in the UK during the same time period had personal loan debt of over 8.3 thousand British pounds. In fact, lending in general seems to be on the up, with the growth rate of credit card lending from high street banks increasing over the previous two years.
With more willingness from financial institutions to loan money, it could almost be assumed that the number of complaints regarding unsecured loans would see a four-year height in 2017. Although this is the case, the actual amount written off by banks and building societies in loans has seen its smallest quarterly figures in 2017 and is expected to continue in that trend towards 2020 where only an estimated 1.8 percent of consumer credit loans will have to be written off.