The Association of Finance Brokers (AFB) has called for regulators to help reopen the lending markets. The regulator must also encourage lending to those consumers most in need, the trade body warned.

AFB director Robert Sinclair told members at their annual dinner last night that regulators need to encourage the reopening of lending markets to prevent people being driven to illegal lenders.

Sinclair said: “The industry has experienced extremely difficult conditions in the past 12 months