CCJs on the up due to consumer debt levels
Recent figures have shown that county court judgements in the UK are on the rise, with many people falling into unmanageable levels of debt and many lenders suffering the effects of bad debt deciding to take court action. With interest rates having risen four times over the past year, and with many consumers having to deal with rising mortgage repayments as well as other debt, the number of people with bad debts has risen dramatically, and this has been reflected with the rising number of CCJs in the UK.
Lenders have been hit with such high levels of bad debt over recent years that they now have to be far stricter, and many are resorting to court action in a bid to try and recover money from bad debtors. Reports indicate that County Court Judgements are at their highest level for the past decade, and in the first three months of this year along there were nearly a quarter of a million CCJs. Based on these figures a million people in the UK could find themselves facing court action for unpaid debts before this year is over.
One official from the Registry Trust stated that an increasing number of lenders are turning to the courts to try and recover money from bad debtors, and that consumers need to be aware that banks are now coming down hard on those that fail to pay their debts. He said: 'Lenders are increasingly using the court route to deal with unsecured debts. The dominant trend is upwards in consumer judgments and this quarter's record numbers give a warning to unsecured borrowers that their credit ratings are at risk and further proceedings are only a step away.'
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