The latest statistics from the Registry Trust are now available and make interesting reading.
On the one hand, these statistics show a drop in the number of judgments obtained against consumers but show a considerable increase in the judgments against businesses.
The trend had until this point, in relation to consumers, been a gradual increase.
CCJs Against Consumers
The statistics for consumers also identify that the average value of a CCJ against a consumer has dropped to £1,460. Whether this is down to creditors making a decision not to pursue debtors through the courts or perhaps arrangements outside of court being reached (payment plans , insolvency process, etc) is difficult to know.
One factor may be the introduction of the pre-action protocol in relation to debt claims. The protocol came into force on 1st October 2017. It requires creditors to provide greater time to the debtor before commencing court proceedings. It also requires the creditor and debtor to engage in more communication and provision of information before a claim is started.
CCJs Against Businesses
The worrying picture in relation to businesses is that judgments are increasing. The average value of a CCJ against a business rose to £3,165. Again, it can only be speculated upon what basis the number and value of CCJs is increasing but it may be because businesses are becoming more proactive in taking steps to recover payment from other businesses. It may however, be a case that debtors cannot afford to pay. Uncertainty is a problem for the economy and certain businesses are struggling to make ends meet. It is important to remain vigilant over who you contract with and the payment terms in place.
Other key stats for the period January to June 2018:
- The total value of CCJs against consumers was just in excess of £834 million.
- The total number of CCJs against consumers was 571,555.
- The total value of CCJs against businesses was just in excess of £200 million.
- The total number of CCJs against businesses was 63,451.
You can access the statistics of the Registry Trust here.
