Consumer borrowing levels in April was lower than the same time last year, according to latest figures from the Finance & Leasing Association.

The amount of credit granted was 9% lower than in April 2009. Store card lending was down by 14%, credit cards by 12%, store instalment credit by 19%, unsecured loans by 42% and second-charge mortgages by 20%. The only exception was car finance provided through dealers, which was up by 15% in April compared with the year before.

The FLA says the figures suggest that consumers remain cautious about spending in the uncertain economic climate and with unemployment rising.

Prolonged uncertainty over whether responsibility for consumer credit regulation will be transferred from the Office of Fair Trading to the new Consumer Protection and Markets Agency, would risk making the market situation more difficult for lenders, the trade body has warned.

Fiona Hoyle, FLA head of consumer finance, said: “Consumer spending is vital to the economic recovery. [The] figures show how fragile the consumer lending markets remain. The government should help reduce uncertainty in the markets by clarifying its plans for consumer credit regulation.”””