Credit, Collections & Insolvency News
Latest figures from the Registry Trust has shown a significant increase in the number and value of monetary judgments (including CCJs) registered against consumers and business in England & Wales compared to the same period last year.
The total number of monetary judgments registered in England & Wales rose from 207,976 in Q2 2021 to 222,490 in Q2 2022, an increase of 7%, and the value increased by 84%, from £418 million in Q2 2021 to £770 million in Q2 2022.
The number of monetary judgments registered against businesses in England & Wales increased by 52%, from 20,066 in Q2 2021 to 30,468 in Q2 2022. The value of these judgments (including commercial CCJs, which have been identified as a ‘warning sign’ for insolvency) also rose by 181%, from £94.5 million in Q2 2021 to £265.8 million in Q2 2022. The value of consumer judgments also saw a significant increase of 55%, from £324 million in Q2 2021 to £504 million in Q2 2022.
The number of business judgments in England and Wales has increased by 52%, from 20,066 in Q2 2021 to 30,468 in Q2 2022. The value of business judgments also rose by 181% year-on-year, from £94.5 million in Q2 2021 to £265.8 million in Q2 2022.
The average value of judgments against businesses has increased by 85% year-on-year.
The total number of judgments against incorporated businesses increased from 15,078 to 23,728 year-on-year, an increase of 57%. The value of debt against these businesses also rose by 128%, from £78.5 million in Q2 2021 to £179.6 million in Q2 2022. The average value of debt rose by 45% year-on year, from £5,209.08 in Q2 2021 to £7,567.98 in Q2 2022.
The number of judgments against non-corporate businesses has seen an increase of 35% in this quarter as compared to the same period last year, from 4,988 to 6,740. The value of debt against these businesses has increased from £16 million to £86 million year-on-year, an increase of 438%. The average value of debt against the non-corporate businesses in England and Wales has seen a 298% increase in Q2 2022 as compared to the same period last year.
The total number of judgments registered against consumers in England and Wales has increased by 2%, from 187,910 in Q2 2021 to 192,022 in Q2 2022. The value of consumer debt has seen an increase of 55% year-on-year, from £324 million in Q2 2021 to £504 million in Q2 2022. The average value of consumer debt rose by 52% year-on-year, from £1,726.25 to £2,627.47.
Registry Trust CEO, Lex Jones, said “Seeing such a significant increase in the value of monetary judgments against both businesses and consumers, while not unexpected, is an important indicator of the serious financial distress many are currently experiencing as a result of cost of living and inflation pressures.”
“With growing reliance on credit cards and buy now pay later to purchase necessities, these figures are likely to increase as CCJs are raised for missed first and second payments. The outlook for businesses is also particularly concerning, especially given the fact that our research has shown a clear link between a business receiving a CCJ and then later becoming insolvent. We urge the Government, regulators, lenders, and other key stakeholders to take these figures very seriously and use them to inform policy and other interventions to avoid further economic harm.”