The recent years have posed significant challenges for both consumers and providers in the consumer credit sector. Factors such as a notable rise in interest rates, slow economic growth post-pandemic, increasing household financial strain, and a more adversarial regulatory environment have impacted borrowers and lenders.

However, findings from the American Financial Services Association's (AFSA) latest Consumer Credit Conditions Index (C3) survey indicate potential positive changes. Conducted quarterly, this survey gathers insights from members on current business indicators and expectations for the consumer-lending environment over the next six months.

According to the survey, consumer finance companies reported an improved business environment in the third quarter. More respondents observed strengthened overall business conditions compared to those who noted weakened conditions over the previous three-month period. Additionally, there is an expectation among respondents that these conditions will continue to improve over the next six months. This marks a change from the trends seen in the previous quarter.