The FLA said urgent action is needed to support the non-bank lending market.
The Finance and Leasing Association has called on the government to act as forbearance requests reach almost 1.2 million.
The FLA said urgent action is needed to support the non-bank lending market as figures released today by the revealed that FLA members provided just over £138bn of new business in the 12 months to March 2020.
Of this total, £44bn was provided by non-bank lenders.
Stephen Haddrill, director general at the FLA, said: “The asset, consumer and motor finance markets have been hit hard by the measures taken to deal with the coronavirus crisis, with a 20% fall in new business in March alone.
"FLA members have also faced almost 1.2 million COVID-19 related requests for forbearance, of which 75% have already been granted. The industry is committed to supporting their customers during these exceptional times.
“Urgent action is needed – in days, not weeks – to deliver financial support to the non-bank lending sector to ensure that we maintain a financial services sector that is diverse, innovative and competitive.”
