Latest Debt News
County court judgements skyrocket
07/12/2005 14:26:00
The number of people given county court judgements (CCJs) has risen dramatically during the year, the Daily Telegraph has reported.
Figures from the Registry Trust show that the amount of individuals hit with CCJs rose by 40 per cent during 2005. The judgements are given to individuals who have failed to repay debts. The total number of CCJs is expected to rise to 864,000, compared to 610,000 in 2004.
The trust said that the number of CCJs had been boosted by the Driver and Vehicle Licensing Agency (DVLA), which had begun to file the judgements against people who had not paid their road tax in the summer of 2004. But other sources of CCJs had also risen by 23 per cent.
"If people bury their heads in the sand they'll end up with a judgement and it's one of the worst things you can have on your credit file," said Mel Mitchely, director of credit rating agency CallCredit.
"It will seriously affect your ability to get credit for most things, including a home. Debt is something that can't be ignored and if you are getting letters threatening court action you should contact the organisation immediately so a solution that suits both sides can be found."
The rise in CCJs comes as more banks and agencies are warning that many consumers are failing to pay off their debts. Barclaycard said last week that it was refusing 55 per cent of applications to cut losses from bad debt.
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