Postcode indicators for CCJs

WEDNESDAY, AUGUST 30, 2006

Your postcode can tell a lot about whether you are likely to have county court judgements (CCJs), according to new research. The study from Callcredit, an online credit record checking service, has found that the areas where most CCJs (a legal action brought for outstanding debt).were registered between 2005 and 2006 had certain things in common.

Of the 0.75 million CCJs registered in the 12 month period, 55 per cent of the population live in an area where none was recorded. However, 15 per cent of the population live in an area where three or more were recorded in the last year. These areas tend to be urban, with lower than average value properties and higher than average use of mail order shopping. There also tended to be lower than average levels of car ownership and – interestingly – a higher than average number of people taking out payment protection insurance.

"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," said Mel Mitchley, director of Callcredit. "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."

Ms Mitchley continued that although the number of CCJs stands at only 20 per 1000 adults, these figures may be on the increase: "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." Many people are turning to debt consolidation loans in order to keep their heads above water.