More county court judgments (CCJs) were registered against consumers in England and Wales during Q1 2018 than any other quarter since current records dating back to Q1 2005 began, according to figures released by Registry Trust.
During Q1 2018, 305,877 judgments were registered against consumers in England and Wales – over double the 150,622 consumers CCJs registered during Q1 2005. Rising two percent in the first quarter of 2017, the total number of adverse CCJs has risen year-on-year for the past five years.
The average CCJ remained stagnant, decreasing just £6; the median CCJ also remained close to Q1 2017’s figure, dropping just two percent in value. As a result, the total value of consumer CCJs marginally rose two percent.
In the High Court, 44 judgments (HCJs) were registered against consumers in Q1 2018. The total value of HCJs soared by £100m to £115.2m. The scale of this increase was largely due to a single judgment worth £84.5m. By contrast, the median HCJ stood at £139,921 for the quarter.
Credit reference agencies licensed by the Trust receive daily updates on judgments. This information affects lenders’ readiness to offer credit and can lead to difficulties with loans and mortgages as well as higher borrowing costs.
Commenting on the figures Joanna Elson OBE, Chief Executive of the Money Advice Trust, said “The relentless rise of CCJs in recent years highlights the precarious state of many households’ financial positions – and the need for more people to receive free debt advice at a much earlier stage. CCJs can have a significantly negative impact on credit ratings, and so the effects of this trend could be felt far into the future.”
“With people now being taken to court for much smaller amounts of debts compared to a decade ago, supporting people in financial difficulty and making sure they receive the free debt advice they need has never been more important.”
- CCJs against consumers Q1 2018 (compared with Q1 2017)
- Total: 305,877 (up two percent)
- Total value: £455.5m (up two percent)
- Average: £1,489 (down £6)
- Median: £684 (down two percent)
- High Court judgments against consumers Q1 2018
- Total: 44 (up nine)
- Value: £115.2m (up £99.6m)
- Average: £2,618,908 (up £2,172,600)
- Median: £139,921 (up £54,921)
- Adjusted High Court judgments against consumers Q1 2018*
- Total: 43 (up eight)
- Value: £30.8m (up £15.2m)
- Average: £715,759 (up 60 percent)
*Discounting a single judgment to the value of £84.5m.