28 September 2005
Lenders are increasingly going to court to claim debts from consumers who default on loans, a new report has said.
According to website This is Money, the increase in county court judgements (CCJs) is at its highest since 1991, with the number of cases up 14.8 per cent to 290,643 in the first half of this year.
Malcolm Hurlston, chairman of the Registry Trust, the organisation that records CCJs, said: "The rise in judgement numbers is clear proof of a deteriorating economy in the personal sector.
"Lenders have returned to the county courts to pursue people who have not repaid, reversing a trend."
Consumers with CCJs have difficulty obtaining credit cards and loand, and could even risk their homes, as CCJs sometimes put debt against your home.
A spokeswoman for the Consumer Credit Counselling Service, a debt charity, told This is Money: "If more judgments are to be avoided, we would encourage people to seek help from us as soon as they are starting to find it difficult to pay their bills.
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