As we head towards polling day for the general election on the 4^th of July, we have now seen the manifestos from all the main political parties.

The purpose of a manifesto is to outline the steps a party would take, if they get the opportunity to form a government. From what we have seen most of the 2024 manifestos have been light on the detail around consumer credit and financial inclusion- understandably there are other issues that grab the headlines like NHS waiting lists and illegal migration.

But this has led us to think about what we would put in the “CCTA Manifesto”. What would the CCTA be calling for from the next government as the main trade association representing alternative lenders?

Firstly, access to credit has been central to the CCTA since its creation in 1871 so it’s not surprising that we would want the future government to address the sharp contraction we have seen in the alternative lending market. We don’t have enough lenders to provide credit to poorly and under-served communities.

Lenders have left the market in recent years, and new firms have not entered it. There has been a sharp rise in illegal lending. We would be happy to work with any organisation looking to address the issue of access to credit.

We are also looking for a more positive narrative from policymakers when talking about the sector. Taking the points above, we need them to accept where we are publicly. They also need to discuss how the future will involve lenders who are Consumer Credit Trade Association members.

Though we all support the growth of community lenders and Credit Unions (indeed they form part of the CCTA membership) they cannot alone fill the gap left by commercial lenders.

A more positive narrative from policymakers would reassure and encourage investors and new entrants. We will work to help government understand the non-prime customer.

The CCTA is also supportive of more regulatory certainty. FCA rules are open to interpretation, making it difficult for lenders to know where they stand. In recent times we have been working with the CCTA members to better understand FCA’s expectations. This is particularly important for smaller firms.

Focusing on SMEs, the CCTA is made up of a range of small and specialist lenders. We would ask for the government to understand the additional regulatory burden that falls on these firms. There is also a need to ensure these firms can access funds and basic banking services moving forward.

We would also call on the next government to address the current claims culture. Claims management companies (CMCs) have had a big impact on the alternative lending sector in recent years.

The FOS’ current consultation on charging CMCs to access their service is a welcome step but the next government must ensure that this change gets over the line and allows the necessary parliamentary time. If not, CMCs will continue to exploit different sectors of the market and continue to deliver poor outcomes for consumers.

And of course, we as an association, promise to play our part in continuing to improve the market. We want to help our members to trade responsibly and serve their customers appropriately. This form of lending makes an important contribution to the economy and keeps families, the self-employed and individuals moving forward.