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United Kingdom Non-Prime Consumer Credit Market Report 2019: Review of the Non-Prime or High-Interest, Consumer Credit Market

DUBLIN, Oct. 3, 2019 /PRNewswire/ -- The "UK Non-Prime Consumer Credit: Market Insight Report" report has been added to ResearchAndMarkets.com's offering.

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This review of the non-prime or high-interest, consumer credit market describes the market for consumer credit agreements with average fixed interest rates over 30% per year, and profiles the main lenders involved in it.

It includes:

  • Review of each of the segments in the market (see below)
  • Discussion of key segment issues including the impact of regulation, and sets out our estimates of historical and forecast growth for each.
  • A set of 45 lender profiles of those active in the sector, covering financial performance, ownership, loan products offered, market positioning, corporate activity and history of the lender.

The review covers the following segments and lenders operating within them:

  • Guarantor finance (key providers include Amigo loans, Bamboo, and Non Standard Finance's Trust Two and George Banco)
  • High Cost Short Term Credit (following the exit of several of the largest firms including WDFC, key providers now include CashEuroNet UK, Elevate Credit, Gain Credit and My Jar)
  • Home-collected credit (key providers include Morses Club, Non-Standard Finance and Provident)
  • Instalment credit including some second-charge mortgages (key providers include Non-Standard Finance's Everyday Loans, Oakbrook Finance, Madison and Avant)
  • Motor finance (key providers include S&U plc's Advantage, Blue Motor, Provident's Moneybarn, and Startline)
  • Credit card and other revolving loans (key providers include CapitalOne, NewDay and Provident's Vanquis)
  • Pawnbroking (key providers include H&T Group, Ramsdens Financial, and Speedloan Finance)
  • Logbook loans (key providers include Loans2Go, Greenlight Credit, and Norfolk Capital's Mobile Money)
  • Rent-to-own (key providers include Caversham Finance's Brighthouse and Temple Finance)

Increasingly, leading providers and their external investors are active in more than one segment

Key Topics Covered:

1. Non-prime consumer credit market

  • Definition
  • Number of non-prime consumers
  • Non-prime consumer credit market segments
  • Market growth
  • Non-prime consumer credit segments

2. Guarantor Finance

  • Definition
  • Key players
  • Sector size
  • Sector trends

3. High Cost Short Term Credit (HCSTC)

  • Definition
  • Key players
  • Sector size and trends
  • Insight: Price cap makes traditional payday loans unprofitable

4. Home-collected Credit

  • Definition
  • Key players
  • Sector size
  • Sector trends
  • Source: The author's Insight analysis

5. Instalment Credit

  • Definition
  • Key players
  • Sector size
  • Sector trends

6. Motor finance

  • Definition
  • Significant players
  • Sector size and trends
  • Sector trends
  • Insight: Non-prime credit accounts for a small part of the car finance market

7. Credit cards and other revolving Loans

  • Definition
  • Key players
  • Sector size
  • Sector trends

8. Pawnbroking

  • Definition
  • Significant players
  • Sector size
  • Sector trends

9. Logbook loans

  • Definition
  • Significant players
  • Sector size
  • Sector trends

10. Rent-to-own

  • Definition
  • Significant players
  • Sector size
  • Sector trends
  • Insight: Non-prime finance slowly departs the high street
  • Alternatives
  • Credit unions
  • Community Development Finance Institutions
  • Fintech solutions
  • Government alternatives
  • Unauthorised lenders
  • Forecasts
  • High Cost Short Term Credit (HCSTC)
  • Home-collected credit
  • Instalment credit including some second-charge mortgages
  • Motor finance
  • Credit card and other revolving loans
  • Pawnbroking
  • Logbook loans
  • Rent-to-own

11. Drivers of Non-Prime Credit Usage

  • Economic growth
  • Consumer borrowing
  • Unemployment and underemployment
  • Wage growth and the impact of benefit policies
  • Levels of self-employment and trade union membership
  • Housing costs
  • Access to mainstream finance
  • Personal insolvency and bankruptcy
  • Other poverty indicators: food bank usage and rough sleeping

12. Non-Prime Credit Regulation

  • FCA regulation
  • Insight: Affordability regulation is key to the market
  • FOS complaints / losses
  • Financial performance of lenders
  • Productivity analysis
  • Firms leaving non-prime consumer credit

13. Major lenders (loan books >20m)

  • 1st Stop
  • Advantage Finance
  • Amigo Loans
  • Avant Credit
  • Bamboo
  • Billing Finance
  • Blue Motor
  • Capital One
  • CashEuroNet UK (Enova)
  • Caversham Finance (Brighthouse)
  • Darwin loan solutions (Evolution, Progressive)
  • DJS (UK)
  • Elevate Credit International (Sunny)
  • First Response
  • Gain Credit
  • H & T Group PLC (Harvey & Thompson)
  • Indigo Michael (Safety Net Credit)
  • Madison CF UK (118 118 Money)
  • Marsh
  • Morses Club
  • Mutual
  • New Day
  • Norfolk Capital
  • Oakbrook Finance
  • Startline
  • Temple Finance

14. Other lenders (loan books 5m to 20m)

  • Active Securities
  • Cash on Go
  • Ferratum UK
  • Go Car Credit
  • Greenlight Credit
  • Instant Cash Loans
  • Loans2Go
  • Mallard Leasing
  • PDL Finance
  • Premium Plan
  • Ramsdens Financial
  • Speedloan Finance
  • Think Money
  • Uncle Buck Finance LLP
  • Valour Finance

For more information about this report visit https://www.researchandmarkets.com/r/9s80tb

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