Debt Recovery News – Consumer court debt down £90m

The quarterly value of debt judgments against consumers in England and Wales has fallen some £90m (16.7%) year on year according to statistics released last month (May 24) by Registry Trust Ltd.

The figures show a drop from £538.8m value of debt judgments against consumers in Q1 2010 to £448.8m in Q1 2011.

The latest reduction consists of a total of 143,946 judgments, compared with 152,915 over the previous period and in Q1 a record 23,832 searches were requested.

Announcing the statistics, Malcolm Hurlston, chairman of Registry Trust said: “When numbers of judgments fall the information provided by each one becomes more precious.

“In certain cases this judgment will be the only indicator of creditworthiness available to a lender….It is pleasing therefore to see the public’s interest in the register rising.”

Registry Trust is the non-profit organisation which operates the Register of Judgments, Orders and Fines for England and Wales on behalf of the Ministry of Justice in the public interest. Judgment information is a key indicator in credit decisions.

At the risk of read something into the figures which may or may not be there it is possible that the number of debt judgements reducing is a result of either more write off’s, less cases being referred to the courts in favour of more out of court arrangements and mediation being entered into, a season blip, or none of the above?

As a debt recovery agency specialising in commercial debt recovery it would be encouraging to think that more people are avoiding judgements and making arrangements to repay their debts before their debt problems increase. And with recent figures from Citizens Advice showing that the daily amount of new debt problem cases referred to them has gone up 18% from May to June, perhaps the above is correct in that more people are facing up to their debts.

Corporate Credit Debt Recovery provides services such as debtor tracing, ongoing business reports, commercial debt collection and debt recovery to a range of UK and EuroZone clients ranging from small to medium enterprises to large scale financial instutions.

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