Consumer credit lending fell by 3% in June, and by 1% in Q2, compared with the same periods last year, according to latest figures from the Finance & Leasing Association (FLA).

However, there was 7% year-on-year rise in second charge lending in June, at £26 million.

The FLA said the total fall reflects low levels of consumer confidence seen on the High Street. For example, store instalment credit fell in June by 14% compared with June 2010. Store card spending remained level.

Geraldine Kilkelly, the FLA’s head of research and chief economist, said: “We are still waiting for significant signs of recovery in the consumer finance markets. During the last 12 months