CCJ per head count alarming for economy

already plagued with high debt and insolvency

FRIDAY, SEPTEMBER 01, 2006

According to a new research conducted by online credit report service MyCallcredit, two Country Court Judgments (CCJs) are registered for every 100 adults over the age of 18 in England and Wales over the past 12 months. This percentage is up to three times hire than the overall percentage in certain towns. For example, Purfleet, Essex saw that CCJs were filed against 6 per 100 adults in the region or 6%.

Its research organized the number of CCJs registered in England and Wales, by geographic divisons as well as the financial characteristics of residents in different parts of the country to help determine which areas are at the most risk of defaulting on their credit commitments.

There were over 750,000 CCJs registered in England and Wales from May 2005 to May 2006 alone.

Callcredit Director Mel Mitchley says: “Where you live can reveal so much about your life from whether you’re likely to have a CCJ to how likely you are to own a car or have access to the internet. Our research found that 55 per cent of the population live in postcode areas where no CCJs were recorded in the last twelve months. We also found that those postcodes with the highest numbers of CCJs per head of population tended to share certain demographic characteristics. But a combination of record levels of personal debt combined with the recent interest rate rise could mean that over the next year we start to see CCJs in neighbourhoods that have so far been unaffected.”

The research found that nearly 750,000 CCJs were filed over the past 12 months and 55% of the population of England and Wales live in a sector where no CCJs were recorded over the last twelve months, while 30% of the population live in sector where between one and two CCJs were recorded over the last twelve months, and 15% of the population lives in a sector where three or more CCJs were registered in that postcode over the last twelve months.

As far as geodemographics are concerned, the highest CCJ percentage areas for found in both urban and suburban communities with a smaller than average semis or terraced properties, lower than average value property, and a higher than average council owned or ex-council .

Of the 20 worst towns in terms of CCJs per head, three towns are in London, three are in Yorkshire, one in both the North East and North West, four in the East, and eight in the Midlands.

Ms Mitchley says: “There are many factors which will affect whether someone gets into difficulty with debt but the geodemographic profile of where you live is clearly one of the indicators that lenders can use to support their responsible lending policies.

The high number of CCJs per head is yet another concern or economists who are wondering how it will effect the British economy that is currently already plagued with high debt and insolvency.