Coronavirus and Consumer Judgments - The Numbers Don’t Tell the Full Story
CCJs down 16% but High Court Judgments up 133%
The Registry Trust have released some interesting data on consumer CCJs, that shows a 16% drop when compared with the same first quarter as last year.
This is the lowest number of CCJs issued since 2016, at 269,249.
Whilst the number of claims is lower though, the overall value of these claims was marginally higher than the same period last year.
£455 million represents a 1% increase on last year’s combined total.
What does this indicate?
It may show that claims are being made for larger sums of money, and lower amounts are either being ignored, or are further down the pecking order right now.
Governmental intervention could be playing a part as well, but the real impact of COVID-19 on judgments is expected later this year.
In terms of the High Court, the number of judgments against consumers more than doubled when compared with the same period of time last year, from 33 to 77.
The lower cumulative total of £15.1 million is hard to gauge too much from though, given the comparatively lower number of judgments that are heard in the High Court.
It is perhaps already becoming clear then, that things such as the Coronavirus Act, interventions from regulators, as well as a sympathetic and flexible approach from creditors, could well be having a positive effect on the number of CCJs against consumers.
It’s those two words again – sympathetic and flexible.
April isn’t included in this report from The Registry Trust though, and it is expected that this number will fall again, perhaps even more drastically, over the next quarter and beyond.
Household finances are taking a battering right now as a result of COVID-19, of course they are, and perhaps a drop in CCJs is representative of at least some light relief.
On the other hand, this could potentially represent something of a COVID calm, before a summer storm.
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