Consumer debt judgments at an all time high

Consumer debt judgments at an all time high

Between January and March 2017, county court judgments (CCJs) against consumers have reached the highest total for more than a decade, as creditors issued claims over smaller debts.

In the first quarter, 298,901 debt judgments were registered against consumers in England and Wales, a noticeable rise of 35 percent compared to that of the same period in 2016.

The average value of a consumer CCJ fell for the eighth consecutive year, dropping nearly 20 percent in the first quarter (year-on-year) to a historic low of £1,495 and the average judgment in the first quarter of 2008 was £3,662.

The Registry Trust (which is the official Registrar for the Register of Judgments, Orders and Fines) also issued a warning about the number of CCJs against businesses which have increased by nearly 40 percent in the first three months of the year.

Nearly 30,000 CCJs were registered against businesses in England and Wales in the first quarter, a 36 percent year-on-year spike.  The trust said this “bucks” the downward trend, which lasted seven years.

The trust’s chairman, Malcolm Hurlston said: “This may well be a course for alarm.  Judgments against consumers have been rising for technical reasons.  There is no equivalent reason for judgements against companies to have jumped to this extent.”

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