Abstract
Overview
Introduction
The non-standard consumer credit market experienced a number of challenges
over 2005, as the economy slowed and a number of bad debt indicators crept up.
Moreover, the industry continues to face a barrage of regulatory and media
attention. So, what does the future hold and how are non-standard lenders
adapting to the challenges facing their industry? This report provides the
answers.
Scope
- Sizes the non-standard motor finance, the home collected credit and the
non-standard credit card markets in the UK.
- Forecasts each sector to 2010, providing three contrasting scenarios.
- Gives insight into the future challenges of each market and how lenders
could respond.
- Incorporates primary interviews from industry experts and secondary data
from a wide range of sources.
Report Highlights
In 2005, 9.1 million individuals were systematically refused credit by
mainstream lenders. However, 2005 was a turning point as a number of factors
that had previously contributed to a declining non-standard population changed
direction, including unemployment, mortgage arrears and repossessions, and
County Court Judgments (CCJs).
The last five years have seen a lackluster performance in the home collected
credit market. In particular, the market has not quite yet managed to recover
from stagnation in 2003. The future for lenders also looks difficult, with
lenders having to cope with additional regulation.
As virtually all mainstream credit card lenders tightened their lending
criteria over the course of 2005, more sub-prime applicants were denied a
credit card than in previous years. As a result, the sub-prime specialist
lenders in the market have benefited from an additional number of potential
customers over 2005.
Reasons to Purchase
- Understand how the market is changing and where the new opportunities lie.
- In-depth analysis of how lenders are coping with a number of issues
allowing you to reassess your strategy.
- Plan your future business strategy in confidence using Datamonitor's
five-year market forecasts.
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