County Court Judgements soar to 10-year high
The number of County Court Judgements (CCJs) taken out against consumer debtors has reached its highest level for 10 years and is showing no sign of abating, according to the Registry Trust.
Nearly 250,000 CCJs (247,187) were sent out in England and Wales in the first quarter of 2007, a rise of almost 10% on the same period in 2006.
Analysts suggested that the figures meant that more households were struggling with their finances, especially as interest rates were going up at a pace not seen for many years, pushing up repayments on variable rate loans and mortgages.
Around 70% of the CCJs issued were related directly to consumer credit, with groups such as HM Revenue & Customs and water companies issuing many of the others. The DVLC also takes out CCJs for non-payment of road tax.
Debtors who do not comply with CCJs are put on the CCJ register for six years, making it more difficult for them to take out loans or mortgages.
Malcolm Hurlston of the Registry Trust said: “The dominant trend is upwards in consumer judgements and this quarter’s record numbers give a warning to unsecured borrowers that their credit ratings are at risk and further proceedings only a step away.”